Al Rajhi Home Finance
Al Rajhi BankQuick Answer
Al Rajhi Home Finance is Saudi Arabia's leading Shariah-compliant real estate financing solution. With Murabaha-based profit pricing, up to 90% LTV, and no early settlement penalties, it's the top choice for Saudi nationals and expats seeking Islamic home financing in the Kingdom.
Al Rajhi Home Finance is the premier Shariah-compliant real estate financing product in Saudi Arabia, offered by Al Rajhi Bank, the Kingdom's second-largest bank by assets. Unlike conventional mortgages that charge interest, Al Rajhi uses a Murabaha (cost-plus-profit) structure where the bank purchases the property and sells it to the customer at a markup, with the profit rate clearly disclosed upfront. This structure is certified by Al Rajhi's Shariah board and complies with Islamic finance principles. Financing amounts range from SAR 100,000 to SAR 10,000,000 (approximately $27,000 to $2.7 million USD) with repayment terms from 1 to 25 years. Since the product is Shariah-compliant, there is no interest rate — instead, a profit rate is agreed upon at inception and remains fixed for the duration of the contract. Al Rajhi also does not charge late payment penalties that would increase profit, instead directing any late payment fees to charity as required by Shariah principles. Al Rajhi Home Finance is available to Saudi nationals and select expatriate professionals working in the Kingdom. The bank finances up to 90% of the property value for Saudi nationals and up to 85% for qualified expatriates, among the highest LTV ratios in the Saudi market. A 1% origination fee applies, and there are no early settlement penalties since Shariah law prohibits penalizing early repayment. The property serves as collateral through a registered mortgage with the Saudi Real Estate Registry.
Key Details
Key Features
- •Finance amounts from SAR 100,000 to SAR 10,000,000
- •Shariah-compliant profit-based pricing (no interest rates)
- •Terms from 1 to 25 years (12 to 300 months)
- •Up to 90% LTV for Saudi nationals, 85% for qualified expatriates
- •No early settlement penalties — Shariah-compliant structure
Pros
- +Fully Shariah-compliant Murabaha structure certified by Al Rajhi's Shariah board — no interest, transparent profit-based pricing
- +Up to 90% LTV for Saudi nationals and 85% for qualified expatriates — among the highest in the Saudi market
- +No early settlement penalties since Shariah law prohibits penalizing borrowers who repay early
- +Late payment fees are directed to charity rather than retained as revenue, per Shariah requirements
Cons
- −Real estate financing only — not available for personal loans, business financing, or other purposes
- −1% origination fee on the finance amount adds to upfront costs at signing
- −Limited to Saudi nationals and select expatriate professionals — not available to all non-Saudi residents
Finatune Ecosystem
🧮 Calculators
Compare This Card
Related Products
Frequently Asked Questions
Is Al Rajhi Home Finance right for me?
Al Rajhi Home Finance is Saudi Arabia's leading Shariah-compliant real estate financing solution. With Murabaha-based profit pricing, up to 90% LTV, and no early settlement penalties, it's the top choice for Saudi nationals and expats seeking Islamic home financing in the Kingdom.
What are the pros of Al Rajhi Home Finance?
Pros: Fully Shariah-compliant Murabaha structure certified by Al Rajhi's Shariah board — no interest, transparent profit-based pricing, Up to 90% LTV for Saudi nationals and 85% for qualified expatriates — among the highest in the Saudi market, No early settlement penalties since Shariah law prohibits penalizing borrowers who repay early.
What are the cons of Al Rajhi Home Finance?
Cons: Real estate financing only — not available for personal loans, business financing, or other purposes, 1% origination fee on the finance amount adds to upfront costs at signing, Limited to Saudi nationals and select expatriate professionals — not available to all non-Saudi residents.
Reviewed by Finatune · Last updated 2026-10-24