Saudi Arabia leaps up World Bank index on resolving commercial disputes

The Kingdom jumped 24 places on the World Bank Contract Enforcement Index, reaching 59 from 83 in the previous year’s list. (File photo: AFP)
Updated 12 February 2019
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Saudi Arabia leaps up World Bank index on resolving commercial disputes

  • The Kingdom jumped 24 places on the World Bank Contract Enforcement Index, reaching 59 from 83 in the previous year’s list

JEDDAH: Saudi Arabia has soared up a World Bank index that ranks countries on how easy it is to resolve a commercial dispute.

The Kingdom jumped 24 places on the World Bank Contract Enforcement Index, reaching 59 from 83 in the previous year’s list.

The index measures the time and cost for resolving a commercial dispute through a local first-instance court.

The Ease of Doing Business 2019 report said steps taken by the Kingdom’s Ministry of Justice during the past two years have contributed to the improved standing.


Head of Saudi Arabia’s SRC: ‘Ask banks for a mortgage, and we will refinance it’

Updated 25 April 2019
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Head of Saudi Arabia’s SRC: ‘Ask banks for a mortgage, and we will refinance it’

  • SRC CEO Fabrice Susini: One of our key objectives is to ensure that the banks are extending loans to more and more people
  • Extending home-ownership is one of the cornerstones of the Vision 2030 strategy to diversify the economy away from oil production

RIYADH: The head of the state-owned Saudi Real Estate Refinance Company (SRC) has made an unprecedented offer to the Kingdom’s home-seekers to underwrite future mortgages.
Speaking at the Financial Sector Conference in Riyadh, Fabrice Susini, SRC CEO, told the audience: “Ask them (the banks) for a mortgage, and we will refinance it.”
Although Susini later clarified his remarks to show that he still expected normal standards of mortgage applications to be met, the on-stage show of bravado illustrates SRC’s commitment to facilitate home-ownership in the Kingdom.
“Obviously if you have no revenue, no income, poor credit history, that will not apply. Now if you have a job, it is different. We have people in senior positions at big foreign banks that could not get a mortgage,” he explained.
He said that Saudi banks have traditionally assessed mortgages on the basis of “flow stability” of earnings. Government employees, or those of big corporations like Saudi Aramco and SABIC, found it easy to get mortgages “because you were there for life.”
“One of our key objectives is to ensure that the banks are extending loans to more and more people. The government is pushing for entrepreneurship, private development, private jobs. If you work in the private sector and cannot get a mortgage the next thing you will do is go to the government for a job,” Susini said.
Extending home-ownership is one of the cornerstones of the Vision 2030 strategy to diversify the economy away from oil production. Saudi Arabia has one of the lowest rates of mortgage penetration of any G20 country — in single digit percentages, compared with others at up to 50 percent.