Meshal Bin Majed Inaugurates CityScape Jeddah today (Okaz Supplement)
CGI has been following developments related to the Mortgage Law closely. We believe that the impact of the Mortgage Law will have a positive impact on the market overall. Any competition will be part of an overall framework, a bonafide industry that will contribute to the Kingdom’s growth and increased home ownership. The Mortgage Law will lay down clear requirements for firms which aim to provide home finance as well as frame the rights and responsibilities of both financier and the home buyer. In addition, the Law provides for the creation of a dedicated multi-billion Riyal liquidity center, which will facilitate the growth of the sector by acquiring mortgage portfolios from financiers and help to create a secondary market for mortgage securities. Once home finance is more regimented, with clear regulations and streamlined processes, we will see the effect of the Law impact real estate projects as well. Developers will more readily create supply that will have end buyers. All in all, the effects are positive for everyone.