Saudi property law 'to reduce house price gap'

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Saudi property law 'to reduce house price gap'

09 Mar 2010

Investment in Saudi Arabia may be a more tempting prospect if a law is put into effect later in the year.

According to Emirates Business, the kingdom's house price gap may also narrow when the approved mortgage regulation is enforced.

Citing undersecretary of the ministry of trade and industry Hassan Akeel, the news source said the mortgage law is expected to curb sharp property price rises, foster bank credit and stabilise the construction sector, due to a predicted drop in the cost of building materials.

Mr Akeel, who said construction and real estate were the main drivers of the Saudi economy, added there was a need to determine the true value of property in the area.

"We also need to support the concepts of transparency, governance and disclosure by private institutions in this sector."

The upcoming mortgage law was recently focused on by Arab News, which said it has the potential to bring in a "new boom period" for Saudi Arabia.
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