The Saudi Arabian Legislative Spring has seen the issuance of
the long-awaited Mortgage Law and other significant new
legislation. The legislative environment in the Kingdom is being
prepared for the emergence of mortgage-backed securities and the
consequential development of the insurance sector.
The Saudi Arabian Legislative Spring – towards an
insured securitisation
The long-awaited Saudi Mortgage Law has been passed by the Saudi
Arabian Council of Ministers and is accompanied by four new laws
relating to the real estate finance sector. Inevitably this has led
to the publication of numerous articles commenting on the
anticipated increase in demand for property insurance. However,
such commentary reflects an intuitive reaction to the shock of the
issuance of a law that was not expected to be released so soon.
It is clear from this legislative activity that it is
misleading to consider the Mortgage Law on its own. A more measured
assessment of all of the new laws
