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Saudi issues preliminary draft rules on new regulation for real estate refinancing companies

Posted on January 10, 2022   |  

  • The rule will develop the finance sector, promoting growth and stability in the secondary market for real estate finance.
  • The rule emphasizes the appointment of non-Saudis in the Real Estate Refinance Company should be restricted to jobs that require expertise not available in the Saudi labor market.
  • The real estate refinances company will trade the rights to real estate financing contracts and enable the flow of funds to real estate financiers in which it must get a no-objection from the Central Bank prior to distributing the programs and products of the rights of real estate contracts in the secondary market.
  • Human resources should be localized up to 50% when the company starts its activities at the level of departments and administrative groups.
  • The Saudi Central Bank (Sama) has requested the public, specialists, and interested individuals to provide their thoughts and observations on the rules within 30 days.