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Pre-debut reactions to Saudi mortgage law mixed
February 4, 2010
A long-awaited draft mortgage law could finally be implemented, according to the Saudi Arabian Monetary Agency's (SAMA) Governor.
Since being drafted three years ago, numerous analysts have said that the law is set to revolutionize the Kingdom's real estate market, triggering a second housing boom once it comes into effect.
Analysts have however expressed concerns that the law would not only bring opportunity but also a flood of applicants whose loans will be on the balance sheets of local banks, in turn raising liquidity issues.
In preparation, Saudi banks have begun cooperating with real estate companies in creating agreements and financial products to offer customers once the law is implemented.
Original Posting At: Zawya
Since being drafted three years ago, numerous analysts have said that the law is set to revolutionize the Kingdom's real estate market, triggering a second housing boom once it comes into effect.
Analysts have however expressed concerns that the law would not only bring opportunity but also a flood of applicants whose loans will be on the balance sheets of local banks, in turn raising liquidity issues.
In preparation, Saudi banks have begun cooperating with real estate companies in creating agreements and financial products to offer customers once the law is implemented.
Original Posting At: Zawya
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