On Sunday, the council approved the draft mortgage law subject to modifications to some of its clauses.The law was approved by the council in 2008 and sent to the Cabinet for approval. The Council of Ministers returned the draft to the Shoura Council for a review since there was a difference of opinion on a few important articles of the bill.To study the draft, the council set up a special committee comprising six members to conduct a detailed study of the whole draft law.The Sunday's session was chaired by Shoura Council Vice Chairman Abdullah Al-Barrak as Chairman Abdullah Al-Asheikh is leading a delegation in Romania."The required amendments and modifications to Articles 9 and 12 have been made with the consent of the majority of the members," Shoura Council Secretary-General Muhammad Al-Ghamdi told newsmen on Monday following the fifth session of the council.Al-Ghamdi pointed out that the mortgage law protects the interests of both the financier and the borrower. Under the new law, he said mortgage agreements are expected to be registered with a company licensed by the Saudi Arabian Monetary Agency (SAMA).
According to the new law, SAMA will be authorized to issue licenses to companies to register such mortgage agreements between two parties.Explaining the effects of the new mortgage law, Al-Ghamdi said it would create new financial lending establishments, a community of borrowers, lessee, lessor and legal firms to look after the interests of their respective clients."The private sector, including the banks and finance companies, will embark on healthy competitions to attract customers for disbursement of loans to their prospective customers," he said.The secretary-general reiterated that the articles included in the mortgage law are strictly in accordance with Islamic law. He said that the lending institutions have been told to strictly follow the rules in accordance with Islamic teachings. He also pointed out that under the lease agreement, the rights of lessor and lessee are well protected and they too will be Sharia'h compliant.The draft mortgage law is a package of five laws-mortgage registration law, which provides for the use of mortgages in real property financing, including mortgage registration; execution (enforcement) law, which expands a judicial court’s authority to provide injunctive and declaratory relief, and to enforce such orders; financial leasing law, which regulates the incorporation, activities, and governance of financial leasing companies; real estate finance law, which regulates the incorporation, activities, and governance of companies engaged in real estate financing and control of finance companies law, which regulates the incorporation, activities, and governance of finance companies.Reading an annual report from the Ministry of Culture and Information, the house suggested that there should be a strategic plan chalked out by the ministry to stop the exodus of qualified journalists who leave the ministry for better financial benefits. The members felt that they should be offered additional perks to continue their services in the ministry. The house also requested the ministry to prepare an encyclopedia of information on Saudi culture to enable future generations to learn of the Kingdom’s proud heritage.
