Deutsche Gulf Finance will have an initial capitalization of approximately $110m and at first will provide Shariah-compliant home financing for properties located in Saudi Arabia, with plans to expand its operations into Bahrain, Qatar and Kuwait over time. Deutsche Gulf Finance has commenced financing completed units as well as those under construction on individual lots or at real estate developments.
Deutsche Gulf Finance maintains comprehensive and customized policies and procedures covering all major aspects of housing finance operations and incorporating global inputs from Deutsche Bank, applicable Saudi law and regulations, and the Shariah standards. The attention has been paid to ensure proper risk controls and oversight levels are maintained.
Fahad Abdullah Al Rajhi said: “Deutsche Gulf Finance will benchmark itself against international best practices and looks forward to contributing to the growth of home ownership in Saudi Arabia.”
Doug Naidus, managing director and global head of residential mortgage backed securities lending and trading at Deutsche Bank, said: “Islamic home finance continues to be an important part of Deutsche Bank’s global mortgage platform. Deutsche Bank’s global expertise coupled with the Al Rajhi family’s local prominence and experience make this an ideal and complementary business relationship.”
Jamal Al-Kishi, chief country officer of Deutsche Bank in the Kingdom, said: “The establishment of Deutsche Gulf Finance is an important milestone for Deutsche Bank’s presence in the Kingdom and signifies our commitment to broaden and deepen our presence in Saudi Arabia as well as our confidence that the Saudi home finance market will witness robust growth.”
