JEDDAH: The Shoura Council is expected to endorse the scheduling of the new mortgage draft law sources told Okaz/Saudi Gazette. The law is meant to preserve the rights of investors and citizens who seek to own a residential building under the real estate mortgage law. This coincides with the Real Estate Fund's plans to offer loans to citizens and the measures made by the Ministry of Housing to receive land plots that fall under its jurisdiction. These steps add to efforts being exerted by the government to address the housing problems of high prices and a shortage of dwellings. Under these efforts, King Abdullah, Custodian of the Two Holy Mosques, has issued a Royal Order increasing the Fund's capital to enable citizens to get housing loans fixed at SR500,000, up from SR300,000. Some observers have expressed fears that some investors may use the new law as a pretext to increase prices of residential buildings and land plots. Official sources have warned about exploiting the boom in the business by increasing prices and pointed out that doing this would be inconsistent with the purpose for which it has been created — to guarantee the rights of investors and beneficiaries.
