According to a leading Persian Gulf law firm, local ministers have tabled a package of five laws aimed at the regulation of mortgages, other property financing and the supervision of finance companies.
Hesham Al Homoud, head of the corporate and commercial department at the Riyadh office of law firm Al Tamimi & Company, said that despite the laws not having yet been published, his team had seen drafts. They indicate that the Real Estate Mortgage law provides ‘for the introduction of a system under which mortgages over Saudi land could be registered in favour of financier and the registered mortgagee would have priority rights against third parties’.
Mr Al Homoud predicted that the other laws will ‘have a very significant impact upon the finance industry ... both in terms of regulation and the way in which banks and other finance providers conduct business...’

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