Regulatory Alerts2015-03-01
Applicability of Article 12 of the Implementing Regulations of the Real Estate Finance Law on Individual Land Financing
The Saudi Arabian Monetary Authority (SAMA) issued this urgent circular to clarify that individual land financing provided by all real estate financiers, including banks and finance companies, is strictly subject to Article 12 of the Implementing Regulations of the Real Estate Finance Law. This directive resolves prior regulatory uncertainty by explicitly extending the provisions of the aforementioned article to cover individual land financing transactions. The circular mandates full compliance from all licensed financial institutions operating within the Kingdom and is distributed to all relevant banking and finance sector entities for immediate implementation.
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