Mortgage laws ‘will protect citizens from price collusion’

New mortgage laws will protect citizens from price collusion between banks and property companies and prevent an American-style housing crisis, said Shoura Council member Dr. Nasser Abdullah Al-Maimaan.
In a recent wide-ranging interview, Al-Maimaan also called for the Shoura Council to be given more powers and administrative and legal support.
Al-Maimaan said the Saudi Arabian Monetary Agency (SAMA) is tasked with monitoring banks and real estate companies to prevent price manipulation.
“This is a competitive market and the Saudi Arabian Monetary Agency monitors finance companies. A tough sanctions regime is in place for offending companies, which may, in some cases lead to closure and fines.”
He said the laws would also help prevent a US-style housing crisis.
The Saudi mortgage laws have four systems involving registration, financing, rentals, and company monitoring. “We did consider what happened in the US and its crisis of financing and debt but this is not allowed in the Saudi system. We looked at the US from the viewpoint of the housing crisis, which we think the estate mortgage system will help solve.”
He says the laws have been introduced in a transparent manner. “The laws and regulations are published all over the Internet for everybody to look at,” said Al-Maimaan.
The new system will be much better than the present one, he said.
Al-Maimaan said new laws will protect the rights of people and give them the chance to obtain a fair loan under just laws.” On the operations of the Shoura Council, Al-Maimaan said the body should be given more powers.
“I think the Council’s authority should be increased because it is in direct contact with the people and their daily troubles. For instance, it should be able to question ministers, form investigative committees, and discuss the general budget with the Ministry of Finance before its approval.”
He said the ministries of interior and finance were currently exempt, but “we have already asked for their reports to be filed with the Council.”
He said the reforms process is underway. “(The chairman) Sheikh Abdullah Al-Asheikh is putting in a lot of effort to develop the work of the Council. The general body needs to have more authority. We should reduce the role of advisers, the Council needs more technical and scientific support.”
He said more legal expertise is needed when amending legislation.
“We always need professional experts, especially in the committee stage,” said Al-Maimaan.
“There is continually a need for legal advisers when looking at amendments. This is especially the case when looking at areas of expertise such as science, health, the environment and water management systems,” he said.
“From my experience in the council, I can say in spite of the differences (between lawyers and legislators) there is no sensitivity among members and everyone has the higher interest of the homeland in mind, with members working for the national interest.”
Everyone was working on the basis of the Qur’an and Sunnah, he said.
Al-Maimaan stressed the need to have written laws for the judiciary “if we want to reform our justice and legislative environment, and if we want to open up to true investments and real development in the Kingdom.”
“But this should be carried out by chosen theologians, abiding by the Qur’an and the Prophet’s (peace be upon him) teachings and which conforms to modern times. The council’s recommendation is now with the Ministry of Justice, and we are optimistic that it will see the light of day.”
Al-Maimaan said women play an important role in the council and welcomed them as members.
“Our Prophet (peace be upon him) used to consult his wives on matters concerning the nation and took account of their opinions.”
He said young people deserved a crucial role in society.
“Listening to them and solving their problems is very important in connecting generations, instilling a culture of dialogue and involving them in the decision-making process.”