Saudi mortgage law sparks 'differences of opinion'

Saudi Arabia's new mortgage law is still be debated amid some differences of opinion on key articles, a senior official has said.

The Shoura Council is currently reviewing parts of the draft law with the council and the cabinet having a difference of opinion on certain issues, assistant chairman Abdul Rahman Al-Barrak said in comments published by Arab News on Tuesday.

Shoura Council Secretary-General Dr Muhammed Al Ghamdi added that the council had set up a special committee comprising six members to study the new legislation.

“The committee has completed 12 sittings and it will soon present its report to enable the house to discuss the entire law by members which would allow them to make amendments, deletions and additions to the draft law,” he told the paper, without giving a timescale for when the draft law would be approved.

Following approval by the council, the cabinet will have a final look at the draft regulation before it is presented to King Abdullah.

Al Ghamdi told the paper that the implementation of the law will boost the kingdom’s real estate business and would pave the way for the construction of thousands of housing units throughout the country.

The implementation of the Saudi mortgage law is expected to increase demand for housing by around 50 percent.