The first of its Kind arrangement in the Kingdom's banking and real estate sector
Samba Signed with SEC a SR 2 Billion Employee Housing Finance Agreement
Samba Financial Group signed last Sunday May 17, 2009 a financing agreement with Saudi Electricity Company, a first of its kind in the Kingdom of Saudi Arabia, to facilitate extension of housing finance amounting to SR 2 billion to SEC employees, in an initiative through which Samba aspires to participate in providing funding for a wide segment of citizens to own their private houses under facilitated financing schemes.
Mr. Eisa Al Eisa, Managing Director and CEO of Samba Financial Group who signed the Agreement with Mr. Ali S. Al-Barrak, CEO of Saudi Electricity Company, at the Head Office of Samba Financial Group in Riyadh, commented on the event "This agreement adds a new episode to our long standing and viable partnership with SEC through long term financial and banking relations. This unprecedented initiative in the banking and real estate sectors effectively boosts housing ownership rates among Saudi nationals by providing them with financing to enable them to crystallize their aspirations under facilitated financing schemes. It aligns with our strategic goals and with the directions of the Kingdom's wise leadership."
Al Eisa expressed his appreciation and gratitude to SEC for their confidence in Samba Financial Group and granting it the opportunity to share in this initiative which will provide for enhancing the collaboration and partnership between both parties to serve their strategic goals and public welfare through innovative financing ideas toward serving the community. "This Agreement reaffirms Samba's strong financial conditions and its sustainable ability to proceed steadily with its financing plans irrespective of the global financial turmoil" said Al Eisa.
Mr. Ali Al-Barrak, CEO of Saudi Electricity Company pointed out that according to this Agreement, SEC's employees will be able to receive Islamic-compliant financing based on Murabaha mode of Financing, and added "the housing loans plan, which is a new initiative and approach, will enable SEC's employees to own residential houses through building the house on a land owned by the employee, finance incomplete houses owned by the employee, or acquire a built house. The loan repayment will be distributed over 20 years. The employee will benefit from the plan throughout his service with SEC, and the Plan aims at enabling SEC's employees to meet the burdens of life".
Al-Barrak further confirmed that the Agreement aligns with the aspirations of the Kingdom's wise leadership to boost the ownership rates of houses by citizens. He also added "selecting Samba for the deal stems from our confidence in this leading financial group and for its robust financing abilities and established track record that will enable it to lead this initiative to the highest banking standards. SEC enjoys strong and long standing relationship with Samba, which will enhance success of the partnership between the two national institutions for the public welfare."