Saudi approves new mortgage rules
A momentous decision by the government of Saudi Arabia is expected to provide a welcome boost for the financial industry throughout the nation.
A draft law has been approved to allow mortgages to be sold for property in Saudi Arabia for the first time in its history. The announcement reported by the state news agency will be welcomed by the millions of young people looking to buy a home of their own.
The country has a population in excess of 26 million and demand for housing is strong and until now prospective home buyers have been fairly restricted in their quest for home loans.
According to experts as the populace expands there is a need for between 150,000 – 200,000 new units per year.
Full details of the new mortgage rules have yet to be made public although lawmakers have explored fully the need to provide mortgage finance in an Islamic sharia compliant manner and to introduce a fair system that is designed to safeguard the financial system. The country’s central bank will oversee the regulation of the mortgage industry.