Chapter Two: General Provisions
| No: 598900000099 | Date(g): 2/1/2019 | Date(h): 25/4/1440 | Status: In-Force |
Translated Document
Effective from 2019-01-02 - Jan 01 2019
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| 2- | Without prejudice to related regulations, banks and real estate finance companies may own properties located in the cities of Mecca and Medina for the purpose of financing them to beneficiaries, or such ownership may be specific to their headquarters, branch offices, or necessary for their operations. |
| 3- | Without prejudice to the provisions of the Law of Real Estate Ownership and Investment by Non-Saudis, the financing referred to in paragraph (2) of these controls is limited to natural or legal persons holding Saudi nationality only, in accordance with the applicable regulations set forth by the relevant authorities. |
| 4- | Banks and real estate finance companies are prohibited from selling -properties they own in the cities of Makkah and AL-Madinah for the purpose of using them as (branches or employee housing)- to non-Saudis. |
| 5- | Banks and real estate finance companies are prohibited from selling -Regarding properties that are transferred to their ownership in the cities of Makkah and AL-Madinah due to customer defaults on payments or customers’ unwillingness to own the property at the end of the lease term in cases where the real estate financing contract is structured as a lease (Ejarah)-, to non-Saudis . |
| 6- | Banks and real estate finance companies must conduct due diligence to ensure that the actual beneficiary of the real estate financing in the cities of Makkah and AL-Madinah holds Saudi nationality concerning properties owned by the bank or real estate finance company related to active financing contracts. |
| 7- | Banks and real estate finance companies must limit real estate financing contracts for individuals to the Mortgage Finance Model Contracts according to what is issued by SAMA in this regard. |
| 8- | Banks and real estate finance companies must notify SAMA well in advance before acquiring or selling properties located in the cities of Makkah and AL-Madinah, and provide sufficient information about the property and the buyer. |
| 9- | Banks and real estate finance companies must provide SAMA with quarterly reports that include cases of (ownership/sale/transfer) of properties located in the cities of Makkah and AL-Madinah. |