03/07/2012
The Council of Ministers under the chairmanship of the Custodian of the Two Holy Mosques King Abdullah Bin Abdul Aziz, yesterday, approved the long awaited Mortgage Law breaking the deadlock in the real estate market and financing for houses. This Law will address the issues related to real estate financing and weakness in the bond market and the domestic credit for house financing. It will specify implementation system, lease financing, mortgage system and control system of financing companies, in addition to the amendment to the Capital Market Law which will allow the inclusion of new companies.
Dr. Ibrahim Al-Assaf, Minister of Finance, said that the implementation of new mortgage law will begin after 90 days, confirming that the adoption of the new systems will move hundreds of millions of idle assets and contribute to reduce the cost of housing for the nationals. He ensured that he will make sure all the systems, whether those of the Ministry of Finance or the SAMA there will be no repetition of the bad mortgage systems.
SAMA Governor Fahd Al-Mubarak said SAMA is proud for being given the privilege to supervise the real estate financing sector and non-banking financial firms. He said the executive bylaw drafted by SAMA for real estate financing sets its operation mechanism and protects the rights of consumers.
