Please enter your username and password here:Forgot Password?
Please enter your details here:or Login
The first Saudi law permitting the use of mortgages was only passed in 2012, and home loan legislation is still in its infancy. Over the previous 30 years, Saudi scholars and mullahs had been discussing whtether or not mortgages were Islamic. They eventually agreed, on the proviso that all mortgages are to be Sharia compliant. What this amounts to in general terms is more protection and safeguards for the buyer.
Saudi citizens have recently benefited from increasingly relaxed mortgage laws, which make it easier for the wealthier locals to get a mortgage. At present, an estimated 1% of nationals use a mortgage to buy a house, though this is increasing. It is possible that in the near future, mortgage laws will be relaxed for foreigners too. At present, however, the overwhelming majority of the 8-9 million expats currently resident in Saudi Arabia are either not interested in buying a property or cannot afford one.
Even for the non-nationals who can afford to buy property, getting a mortgage from a Saudi lender is going to be very hard. However, King Abdullah Economic City (KAEC – pronounced ‘cake’), a vast planned city, is currently under development to the north of Jeddah. This city will have more relaxed laws including freehold property. This means that expats will be encouraged to stay more long-term in the new city and they will probably be offered mortgages.
Since it is nigh on impossible to obtain a mortgage through a Saudi institution, you could consider obtaining a loan from a foreign bank that has branches in Saudi Arabia. Otherwise, you could choose to obtain a mortgage from a lender in your home country. In this case, you should be aware that currency fluctuations may lead to you repaying more than you had originally planned.
Sections in ACCOMMODATION IN SAUDI ARABIA:
We value input from our readers. If you spot an error on this page or have any suggestions, please let us know.
If you are considering moving to Saudi Arabia or are soon to depart, you can find helpful information and advice in the Expat Briefing dedicated Saudi Arabia section including; details of immigration and visas, Saudi Arabian forums, Saudi Arabian event listings and service providers in Saudi Arabia.
From your safety to shopping, living in Saudi Arabia can yield great benefits as well as occasional drawbacks. Find your feet and stay abreast of the latest developments affecting expats in Saudi Arabia with relevant news and up-to-date information.
Working in Saudi Arabia can be rewarding as well as stressful, if you don't plan ahead and fulfill any legal requirements. Find out about visas and passports, owning and operating a company in Saudi Arabia, and general Saudi Arabian culture of the labour market.
About | Useful Links | Global Media Partners | Media | Advertising And Sales | Banners And Widgets | Glossary | RSS | Privacy & Cookies | Terms And Conditions | Editorial Policy | Refer To A Friend | Newsletters | Contact | Site Map
Important Notice: Wolters Kluwer TAA Limited has taken reasonable care in sourcing and presenting the information contained on this site, but accepts no responsibility for any financial or other loss or damage that may result from its use. In particular, users of the site are advised to take appropriate professional advice before committing themselves to involvement in offshore jurisdictions, offshore trusts or offshore investments. © Wolters Kluwer TAA Ltd 2017. All rights reserved.
The Expat Briefing brand is owned and operated by Wolters Kluwer TAA Limited.