Saudi Commercial Mortgage Law’s Executive Regulation Issued

Ministry of Commerce and Investment issued the executive regulation of the commercial mortgage law, pursuant to Article (45) of the law issued by Royal Decree No. (M/86) dated 08/08/1439 AH, which states that "the minister shall issue the regulations w...

Ministry of Commerce and Investment issued the executive regulation of the commercial mortgage law, pursuant to Article (45) of the law issued by Royal Decree No. (M/86) dated 08/08/1439 AH, which states that "the minister shall issue the regulations within (60) date of publication of the law, in the Official Gazette".

These regulations were prepared in coordination with the Ministry of Justice, the Saudi Arabian Monetary Agency and the Capital Market Authority, which prepared a study on best practices.

The ministry explained that the regulation includes executive provisions of the articles of the law, the most prominent of which are the provisions for the transfer and execution of the possession of mortgaged property, foreclosure contracts which cease applying the transfer of possession, the current and investment accounts, deposits and the direct execution procedures.

The full list of the regulation items can be accessed, at https://mci.gov.sa/cm.

Source: Saudi Press Agency