FINANCIAL NEWS

Foreign firms to finance properties in Saudi Arabia soon: CB

07 Mar 2013

(MENAFN) The Saudi Arabian Monetary Agency’s (SAMA) Governor, Fahad Al-Mubarak, stated that the bank will give permission to foreign firms to offer mortgage financing in the country, reported Arabian Business.

Al-Mubarak said that the Kingdom’s mortgage financing market is growing gradually and quietly, and the recent move comes as new mortgage laws are being introduced in order to transform home financing into properly secured lending.

He added that Saudi will establish a new company to register leases, in addition to a refinancing firm with a capital of USD1.33 billion from the Public Investment Fund.

It is worth noting that a draft law was endorsed in 2012 to help with home financing in Saudi Arabia that needs 200,000 new homes annually to accommodate its growing population.

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