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Saudi to pass mortgage law soon

The law will have five parts including the terms of mortgages, how they are designed and how procedures will be enforced, says Bloomberg.


January 24, 2010 4:21 by

The Kingdom will issue its first mortgage law within the next few months, Muhammad al-Jasser, Saudi Arabia’s central bank governor told Bloomberg on Saturday.  “I’m optimistic that in the next few months, the law will be issued,” he said. “It will be a qualitative jump in the way we finance housing in the country and in the way we use financial instruments that are linked to the housing market.”

The law, which has been discussed for the last two years, will have five parts including “the terms of mortgages, how they are designed, how they are granted, how companies are licensed and how procedures will be enforced,” the report says.

The law still has to be approved by the council of ministers and the Shura Council, al-Jasser said.


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