Regulatory Alerts2018-04-09
Compliance with standard forms for real estate financing contracts in Murabaha and Ijara formats for individuals
The Saudi Central Bank mandates all licensed banks and real estate financing companies operating in the Kingdom to adopt the newly issued standard contract forms for individual Murabaha and Ijara real estate financing agreements as a minimum baseline. Financial institutions must complete all internal compliance procedures, including mandatory Shariah Committee endorsement, by May 25, 2018. Any execution of real estate financing contracts that deviate from these standardized formats is strictly prohibited after the specified deadline.
Share