“We are conducting a detailed study about this proposal and the final report is to be released within a period of two months,” said Real Estate Committee Chairman Hamad Al-Shuweir during an event here on Saturday.
Al-Shuwair explained that the report of the study calling for the establishment of an authority for real estate would be forwarded to the Shoura Council for necessary action.
He said the CSCCI had agreed on the concept of the authority, but the details of its role and its functions would be worked out by the consultancy firm.
He said the recommendation is to be made considering the latest developments in the real estate sector, such as the setting up a separate ministry for housing, supplementary allocations offered through royal decrees to the Real Estate Development Fund (REDF) and the interests shown by private investors in real estate financing. Such an authority will attend to the needs of the land owners, consumers and local and foreign investors.
Recalling the unprecedented response for the Real Estate Exhibition that concluded in Riyadh last week, Al-Shuwair pointed out such an authority could manage the private and public sectors’ interests for the benefit of the people.
The authority could frame regulations for this fast developing sector and be a window for real estate industry of the Kingdom to both local and international markets.
It could also reduce the workload of the governmental bodies such as Ministries of Justice, Municipal and Rural Affairs and Commerce and Industry and Finance and the Saudi Arabia Monetary Agency.
The National Real Estate Council of the CSCCI has been entrusted with the task of formulating the regulation for the real estate industry, promoting investments for the real estate sector in the Kingdom, recruiting professionals for the trade and trying to give the right picture of the real industry to the investors as well as the consumers.
Recently, the Shoura Council approved the state mortgage law which has been sent for royal assent through the council of ministers.
The REDF started its activities in 1975 to provide loans to citizens to help them construct their own homes and for investment purposes.
It commenced operations with a capital of SR250 million.
During the first 25 years from its inception, the REDF has granted 443,842 private loans and 2,488 investment loans, resulting in the construction of 555,866 residential units. REDF’s services have so far reached 3,976 cities, villages and remote areas all over the Kingdom.
