Saudi Gazette report JEDDAH — Sources at the Ministry of Housing said there is high level of coordination between the ministry and the Justice Ministry to refer rent dispute cases to special courts. The sources told an Arabic daily this would allow for the quick resolution of such cases and allow general courts to deal with more important cases. The head of the property evaluation committee at Jeddah Chamber of Commerce and Industry (JCCI), Abdullah Al-Ahmari, said this was a good solution. "Such cases were usually submitted to the property committees at governorates and are then referred to courts, which take a long time before they issue a ruling," he said. He added that a unified rental contract system would eliminate a number of problems. Including the unified contract in the Shomoos security system, an electronic informational system for the private and government sectors, would allow prosecuting courts to refer to contracts' articles immediately, he said. He pointed out that the unified contract states that rental payments should be linked with the Sadad system to stop property owners from claiming that they did not receive rent payments even though tenants claim otherwise. "This system will greatly minimize bad debts and conflicts between property owners and tenants," he added. He explained that a system issued 40 years ago was clear in preserving the rights of all parties, but that system was never implemented. He expected rent levels in Makkah to decline because many citizens have moved out of properties that were to make way for expansion projects in the holy city. Such citizens have to rent houses or apartments until they receive their compensation to build their own houses. "Rents in Makkah are witnessing a recession and land prices are on the decline due to the promised government housing projects," he said. He said this system would open more rental opportunities for Saudis who often face reluctance from property owners to rent units to them. This would also increase supply in the market, causing a reduction in rental costs. The deputy head of JCCI, Mazen Batterjee, said this system would encourage many property owners to sell their property, hence reducing rent levels, although it may cause an increase in building prices. "This system will also draw more investors into the property market and entrusting prosecution courts to handle rental cases will relieve the pressure on general courts," he said. He noted the system would prevent residents from working in property offices, providing more work opportunities for Saudis.
