Regulatory Alerts2026-05-21
Added · Updated
Limitation of the Right of Recourse against Real Estate Finance Entities in Real Estate Portfolios Sold to the Saudi Real Estate Refinance Company, and Exemption of such Portfolios from the Requirement to Obtain SAMA's No-Objection
The Saudi Central Bank (SAMA) has issued a circular to reduce the right of recourse against real estate financiers and exempt certain real estate portfolios from SAMA's no-objection requirement when sold to the Saudi Real Estate Refinance Company (SRC). Specifically, the period for recourse against financiers for residential real estate finance portfolios sold to SRC is now limited to one month from the financing date, a reduction from the previous six months. Furthermore, these portfolios are no longer subject to SAMA's prior approval, though financiers must still notify SAMA of disposal details within five working days of the final sale contract.
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