Stock News: Sheikh Abdullatif Alshelash’s Saudi home loan performance kicked off with a strong IPO

Sheikh Abdullatif Al Shelash is a board member of Saudi Home Loans, which landed $423 million in its IPO on the Saudi Stock Exchange.

In the first quarter of this year, Saudi home loans generated SAR 32.35 million (about $8.62 million) in net profit after zakat, a form of alms, and taxes, up 9.79 % from SAR 29.47 million in the first quarter of 21, according to news site zawya. com. On May 31, Saudi Home Loans issued a statement indicating a cash dividend distribution of SAR 0.77 per share for 2021. Saudi Home Loans will pay out a total of SAR 77.40 million, or 7.74% of the capital, for 100 million eligible shares, according to news.writecaliber.com. Although shares of Saudi Home Loans are down, they still outperform their competitors.

Saudi Home Loans is one of the brands in the field of Islamic finance, serving the Saudi market with its housing needs. According to arabianbusiness.com, Abdullatif Al Shelash said Saudi Home Loans was the first of its kind to follow an Islamic housing finance system and would serve middle-income households as well as less well-off segments of the Saudi community. In 2007, when Saudi Home Loans was launched, Abdullatif Al Shelash told Arabian Business: “Our goal will be to promote home ownership by providing hassle-free home loans.

When Saudi home loans started, only 22% of Saudis could call themselves homeowners, with the majority of people renting in the region. According to the Al Arabiya news channel, as of 2020 around 60% of Saudis owned homes and by the end of 2030, 70% of Saudis are expected to own homes.

Abdullatif Al Shelash says he has always been passionate about helping Saudis realize their dream of home ownership.

“This is a company that was the first company established in Saudi Arabia to help Saudi nationals buy their homes with a mortgage,” Abdullatif Al Shelash said. “It was one of the very first mortgage companies to establish itself in Saudi Arabia. I was a founding member and I am still a member of the board.

In 2007, home loans in Saudi Arabia were hard to come by

Abdullatif Al Shelash helped usher in a new era with the revolutionary concept of Saudi mortgage loans. A true industry pioneer, Abdullatif Al Shelash has helped promote Sharia-compliant solutions for obtaining mortgages in Saudi Arabia. The Purdue University graduate says he has a gift for leadership, majoring in facility management and supervision at Indiana University in 2000. Abdullatif Al Shelash also has a notable background in finance, founding Unicorn Investment Bank. The Islamic financial services organization then became Bank Alkhair BSC, whose Abdullatif Al Shelash is a member of the board of directors.

In the new paradigm, Dar Al Arkan, where Abdullatif Al Shelash was previously Managing Director of the Board of Directors, provided the apartment or villa, and Saudi Home Loans provided the financing. Abdullatif Al Shelash says he was also a key player in bringing the International Finance Corporation to Saudi home loans and for the IFC to support lending and home ownership in Saudi Arabia.

Commercial real estate and investment services firm CBRE reports that Saudi Arabia’s GDP is expected to have grown 2.9% in 2021 and is expected to grow 6.2% this year. However, residential transaction volumes in Saudi Arabia fell by 23.4% in the first quarter of 2022, compared to the previous year, when the total value of transactions also slightly decreased by 1.9%.

According to its website, Saudi Home Loans provides crucial strategic support through its shareholders and business partners in the financial and real estate sectors. With an annual growth rate of 40% in net profits in recent years, it has become one of the most profitable companies among non-bank real estate finance companies. The website also emphasizes how the company is adapting to the changing needs of the Saudi real estate market while providing a strong housing finance portfolio and keeping an eye on the future.

Making home ownership in Saudi Arabia more accessible

The accessible Financing options available through Abdullatif Al Shelash’s Saudi Home Loans help lower and middle class Saudis get ahead by investing in real estate in the kingdom.

“We were the first among companies to promote housing finance because the culture here was [that] I would save to have the full price of my house or save to buy land and then save to build a house on that land,” says Abdullatif Al Shelash.

This has forced many cash-strapped Saudis, especially young families, to live with relatives. Today, he says, these couples can leave the nest and move into their first home.

“We came up with a totally different concept. You don’t need to do that. We can give you a mortgage for 15, 20, or 25 years, and you can actually go live in your house today.

This article does not necessarily reflect the views of the editors or management of EconoTimes

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