Quotes: US MENA   Enter Symbol: NewsLetter: Search: advanced

Saudi- Secondary market plan for mortgages welcomed  Join our daily free Newsletter

MENAFN - Arab News - 25/11/2012

No. of Ratings : 0
Add to Mixx!


 


(MENAFN - Arab News) The Kingdom is studying draft regulations that could see the creation of a real estate refinancing company similar to US firm Fannie Mae, according to proposals published by the central bank recently.

The regulations are part of long-awaited government efforts to develop a housing mortgage sector in the Kingdom.

The regulations proposed recently fleshed out the laws principally by saying the government may establish Saudi Real Estate Refinancing Corp. to develop a secondary market in home mortgages.

The new corporation, with a minimum registered capital of SR 2 billion, would have to stay majority state-owned but real estate financing companies would be allowed to acquire stakes up to a combined total of 30 percent. The corporation might also offer shares to the public. It could provide the secondary mortgage market with access to both local and foreign financing instruments, the draft said.

Local financial firm Arqaam Capital has said the introduction of a legal framework for mortgages will see the amount of lending to purchase housing in Saudi Arabia eventually double to 12 percent of GDP.

"The problem was how do you get that person to repay if they cannot be kicked out of their house,"Nicholas Diacos of The Law Firm of Saleh Al-Hejailan, told Reuters. "In terms of making competitively priced financing in this market, it was a nightmare because the financiers were pricing the risk into their finance."

 






  MENA News Headlines


 






Google

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country
Marketwatch News
UPI News
Comtex News

IPO News
Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

US Markets Details

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Investment Game
Economic Calendar
Financial Glossary

My MENAFN
Portfolio Tracker

Voting

Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2000 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help