Riyadh: The Diriyah Gate Development Authority (DGDA) has signed a Memorandum of Understanding with Al Rajhi Bank to provide financing options for the purchase of residential real estate units. The agreement facilitates the financing of people wishing to buy housing in the residential projects of the DGDA and strengthens cooperation in real estate investments, banking services and other areas related to the coordination, development and implementation. implementation of projects and initiatives.
The MoU was signed by Jerry Inzerillo, Group CEO of Diriyah Gate Development Authority, and Waleed Al-Mogbel, Managing Director of Al Rajhi Bank. The agreement will pave the way for cooperative discussions in areas such as corporate and retail banking, Sharia-compliant solutions and e-commerce products to help DGDA improve its efficiency and manage administrative challenges such as import and export lines of credit, bank letters of guarantee. , shipping letters of guarantee and online supply chain finance. In addition, the agreement includes cooperation with the bank’s corporate banking group for cash flow management, collections and payments solutions, as well as the management of digital payments through the bank’s online portal. DGDA.
Under the terms of the memorandum of understanding, the two parties will also explore the possibility for the bank to offer sales management in VEFA using tools including an advanced user interface and a reporting system, which would allow the DGDA to obtain a granular visibility on its projects. The two parties also agreed to develop new ways to offer financial support to people looking to buy homes around Diriyah, as well as the possibility of extending full banking services to DGDA staff at competitive rates.
The MoU also covers working with Al Rajhi Bank’s insurance arm, Takaful, to offer Sharia-compliant insurance for DGDA properties and staff, including medical insurance policies, automobile and savings.
Mr. Inzerillo said that one of the main objectives of the memorandum of understanding is to train DGDA staff in financial management, adding that the two parties would work together to categorize real estate developers according to their credit rating, in more than exchanging their expertise and their research. “With this Memorandum of Understanding, we aim to help ensure financial sustainability and maximize returns from our assets, as well as to enhance the skills and train our staff to help us achieve our ambitious goals,” a- he commented.
Meanwhile, Al-Mogbel said the MoU will create potential opportunities for the creation of new real estate funds designed to finance specific types of developments, lease them out, and then dispose of them as and when needed.
He also said real estate funds can be created to operate on a sale-sale-sale model, with cash and investment management tools tailored to each individual project, as well as co-funding with other companies. other banking institutions. In conclusion, he expressed his hope that the agreement would strengthen the collaboration between the two parties to achieve their mutual goals.
About Diriyah Gate Development Authority (DGDA)
The Diriyah Gate Development Authority (DGDA) was established in July 2017 to preserve Diriyah’s history, celebrate its community and make the historic UNESCO World Heritage Site of At-Turaif one of the most great gathering places in the world at the heart of Saudi culture and heritage. We are focused on protecting and preserving the history of the Kingdom, including the stories of our ancestors as well as our physical heritage. In accordance with design, development and preservation standards, DGDA will create an environment that enhances the historical, national and international relevance of Diriyah, including the preservation of At-Turaif. DGDA is transforming Diriyah into one of the region’s leading destinations for cultural knowledge sharing activities and international events. We aspire to make Diriyah a global gathering place by creating rich experiences that tell the stories of our history, instilling a sense of Saudi pride, and creating world-class destinations and landmarks. The Authority ensures that Diriyah’s cultural landmarks are complemented by leading hotel brands, fine dining experiences and world-class retail offerings. We are committed to enabling the people of Diriyah to achieve their goals. The DGDA will celebrate the local community, showcasing social, cultural and historical achievements, connecting to the roots of the Saudi state and creating strong foundations on which to build the best possible future for the community. The DGDA works alongside the executive bodies of Diriyah, as the main regulator for the supervision area (190 km²) and will apply best practices in land management, issuance and monitoring of construction permits and licenses.