Abstract
The Real Estate Development Fund (REDF) in Saudi Arabia was created in 1974 as part of the overall plans to modernize the country, ease the housing shortage by giving interest-free loans and induce the private sector to participate in the development of housing construction. The national development institution is a new concept to the Saudi government. However, the government felt that this concept must be implemented with certain provisions to accommodate social, political, cultural and religious sectors. The purpose of this study was to describe the achievements and contributions of REDF in light of its goal as a development institution. The study examined the economical plans and efforts undertaken by the Saudi government in which REDF is part of them. The research used archival research, interview and survey methodology. Interviews were done with officials of REDF. The survey primarily applied to REDF recipients. A total of 304 completed this survey. The study found that from 1975 to 1982, during the height of development process, the REDF significantly contributed to housing construction and save the housing structure. During this period, the REDF policy basically remained the same. Many homes were provided to those eligible with a relatively short period of approval time wasted. Cash and clients were available at that time. When economical conditions changed, funding became a major problem and REDF policy did not cope enough with the time. Although billion of dollars were spent and thousands benefitted from this program, many survey respondents felt, while REDF achieved its development plan's goal and ease the housing shortage, still loans are needed to facilitate loans to the indigenous Saudi population. This, in part, reflects the environmental outlook toward the REDF and it became more of a financial loan institution than a development institution. Recommendations were given to include the private sector participation in the capital formation of REDF and adaptation of Islamic loan policy to gain acceptance from the society.