On enforcement of mortgage law in Saudi Arabia. At that time Saudi mortgage market was US$16 billion, which was expected to be US$32 billion in the coming ten years.
The market may increase to about $32 billion annually over the next 10 years, providing opportunities for lenders, property developers, and middle-class Saudi homebuyers, according to Naveed Siddiqui, chief executive officer of Capital Group International, a Saudi company focused on Islamic finance. “The financial sector alone in Saudi Arabia will not be able to fill the gap,” he said in a telephone interview yesterday. “The government will have to allow non-banking financial institutions such as mortgage companies to come in to stimulate the market.” The package of five separate laws will overhaul the home-finance market including the creation of mortgage providers, the foreclosure process and the oversight of lenders. Regulations required to implement the law will be issued within three months, Saudi Arabia’s finance minister Ibrahim al-Assaf said in comments published by the Saudi Press Agency.