Construction Finance

Shariah-compliant products offer the opportunity to own affordable house

This product allows you to obtain liquidity to build your own land or complete the construction of your property and get refinance upon completion of each stage of construction


Tawarruq meaning:

Purchasing by Tawarruq means that the bank owns metals purchased from London Metal Exchange and then sells them to the customer at a fixed annual rate. After buying metals from the bank, the customer will immediately authorize the treasury department to sell these metals on his behalf by signing a power of attorney to obtain cash.


This product is available for all creditworthy customers and customers who are supported by Real Estate Development Fund and Ministry of Housing


Product’s features:
  • Product approved by the Shariah Committee in the form of Tawarruq.
  • Financing with a competitive and fixed profit rate for the whole term.
  • Possibility of funding up to the age of 75 years.
  • Financing term up to 25 years.
  • Financing amount up to SR 5 million.
  • Step down payments on retirement- the customer will have a reduced installment after retirement in accordance with the pension.
  • Exemption from remaining repayments in case of death or permanent disability.
  • Refinance upon completion of each stage of construction.


Eligibility criteria:
  • The customer must be at least 20 years old.
  • Open a current account if he does not have one.
  • The customer's monthly net income shall not be less than SAR 5,000.

Required documents:

To better serve you, kindly provide the following documents to complete your applications:

  • A copy of the title deed.
  • A copy of the construction permit.
  • Fill in and sign the seller’s offer form by the property owner.
  • A copy of a valid ID of the seller.
  • Location sketch of the property.
  • Fill in and sign a mortgage application.
  • A detailed salary certificate mentioning the allowances (if any).
  • A copy of a valid ID.
  • pay slip of the last three months if the customer works for a semi- government or private sector.
  • Account statement for the last three months indicating the receipt of the salary.

Example: Disclosure of the cost rates of a 15-year mortgage for the first home
Early payment Charge Monthly Repayment Amount Payment Type Maturity Years *APR Fixed or Variable Rate Loan to Value Ratio Property Market Value
3 Months Profit 6,394 SAR Principal and Profit 15 years 6.81% Fixed Rate 90% 800,000

* APR may differ depending on the amount and the maturity period different from the above example and subject to credit scoring of each customer

*Subject to terms and conditions.
**The administrative fees are 1% of the financing amount or SR 5,000 whichever is lower.
***Annual percentage rate (APR) starting from 4.86% including all fees and charges.

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