Minister of Commerce and Industry Dr Hashim Yamani has approved the establishment of the Saudi company for financing houses with a capital of SR 2 billion. The capital is split into 200,000,000 shares and the nominal value of each share is SR 10. The founders of the Riyadh-based company have subscribed the entire shares of the company and have already paid 25 percent of the total capital (SR 500 Million). The company will be concerned with financing purchase of houses and land plots and flats in the Kingdom of Saudi Arabia in addition to financing commercial and industrial projects. The shares of the company are not allowed to be circulated without the approval of the Capital Market Authority (CMA). The company will be managed by a ten-member board of directors who will be appointed by the company's general assembly for a tenure of three years. The establishment of the company comes within the framework of the state's policy which aims at broadening the economic base and diversifying the sources of income as well as enabling the private sector to positively contribute to the acceleration process of the economic development in the country.
