Applicability of Article 12 of the Implementing Regulations of the Real Estate Finance Law on Individual Land Financing

In the name of Allah, the Most Gracious, the Most Merciful Saudi Arabian Monetary Authority Head Office

General Directorate of Supervision of Finance Companies

Ref No.: ............................................................ No.: 361000068588 Date: 1436/05/10 Attachments: ............................................................

Circular / Urgent

To: ............................................................ Greetings,

Subject: Applicability of Article 12 of the Implementing Regulations of the Real Estate Finance Law to Individual Land Financing.

With reference to the powers granted to the Authority under the Real Estate Finance Law issued by Royal Decree No. (M/50) dated 13/08/1433H, and the Finance Companies Supervision Law issued by Royal Decree No. (M/51) dated 13/08/1433H, and since the Authority has received numerous inquiries regarding the applicability of Article 12 of the Implementing Regulations of the Real Estate Finance Law issued by Minister of Finance Decision No. (1229) dated 10/04/1434H to individual land financing.

Accordingly, the Authority confirms that individual land financing by all real estate financiers (banks and finance companies) is subject to the provisions of Article 12 of the Implementing Regulations of the Real Estate Finance Law.

For your information.

Yours sincerely,

Abdulaziz bin Abdulrahman Al-Halissi Deputy Governor for Supervision

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• Distribution Scope:
  • Banks and finance companies operating in the Kingdom.
  • Finance companies.

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P.O. Box: 2992, Riyadh: 11169, Phone: +966 4662020, Fax: +966 4662488