New law 'to transform Saudi property market'
Riyadh, December 10, 2012
The new regulations on real estate financing, leasing and supervision of financial companies issued by the Saudi Arabian Monetary Agency (Sama) are set to transform the Kingdom's property landscape, said a property expert.
Masood Al Awar, the CEO of Abu Dhabi-based Tasweek Real Estate Marketing and Development was speaking on the opening day of the 'Riyadh Real Estate Summit' being held as part of the '2012 Cityscape Riyadh' real estate networking exhibition and conference which runs till December 12.
Addressing the gathering, Al Awar discussed the industry challenges and opportunities posed by the mortgage law revamp. He also provided valuable insights on how to identify investment opportunities and establish home financing products and companies under the new mortgage law.
He commented on short-term investment risks and the impact of Sama legislation in this regard.
The Tasweek chief is part of an expert panel at the Riyadh Real Estate Summit workshop titled ‘Capitalising on the Home Financing Market Under the new Mortgage Law.’
Al Awar took the opportunity to share Tasweek's UAE experience with mortgages and present some of the company’s premier financing capabilities. He also discussed about Tasweek’s $250 million international property portfolio which began being built up in 2009 and is projected to produce a solid annual investment yield of between 5 and 7 per cent.
According to him, the new Sama legislation will overhaul the domestic home finance market, from registering mortgages to allowing judges to prosecute police officers who fail to complete eviction orders.
Al Awar pointed out that the changes have the potential to increase residential lending to around $32 billion annually. The rules will eventually lead to the establishment of licensed private mortgage providers and a government-owned refinancing company, he noted.
“There are many factors that make Saudi Arabia a leading property hub, such as its strategic location, quality of planning, and high demand for integrated urban projects. The legislation aims to further accelerate market growth," remarked Al Awar.
"Developers and investors need to know how the new laws affect their decisions and operations and how it will shape local real estate in the near and long term. Cityscape Riyadh is a timely platform to discuss the challenges and opportunities ahead and Tasweek is more than eager to share its own thoughts and expertise on the matter," he added.-TradeArabia News Service