RIYADH, 22 June 2006 — Saudis and expatriates can now rent and subsequently own a car under a new service launched by Al-Rajhi Bank yesterday. The package entitled “Al-Rajhi Auto Leasing Program” is designed to help customers eventually own leased vehicles.

“This is a new service launched by the bank to cater to a larger clientele of people who wish to own cars without having to pay a lump sum in advance,” Saeed Al-Ghamdi, director of the bank’s personal loans department, told Arab News. He added that the idea was to help customers rent vehicles with a view of owning them at the end of the contract. Al-Ghamdi explained that the Islamic (Shariah) committee of the bank had given the green light to the program and had said that the scheme is Shariah compliant.

“The offer is open to all Saudis and expatriates including Al-Rajhi Bank customers,” Al-Ghamdi said, adding that the bank has made the regulations flexible enough for even common people to eventually become owners of leased vehicles.

“We will not request the applicant’s employer to deposit the salary in our bank,” he noted, pointing out that ownership of the vehicle will rest with the bank till the full payment is settled by the leaseholder in accordance with the lease agreement. Under the scheme, an applicant needs to have a minimum monthly salary of SR1,500 for the bank to buy him a vehicle from any company. Applicants then need to pay to the bank in monthly installments within a maximum period of five years. Down payments are not required by the bank, collaterals nor guarantors are needed for the signing of the lease agreement between the applicant and the bank.