The Saudi Council of Ministers issued a package of five new laws which are expected to dramatically change the finance market in the Kingdom, Al Tamimi & Company – the largest law firm in the Middle East – said in a statement.
The new laws, which have been anticipated for some time, are as follows:
1) The Execution/Enforcement Law
2) The Finance Lease Law
3) The Real Estate Mortgage Law
4) The Real Estate Finance Law
5) The Law on Supervision of Finance Companies.
Currently, copies of these laws are not yet published.
However, the Minister of Finance has announced that they (laws) will take effect 90 days after the Royal Decree which was issued July 1, 2012, although the earlier drafts of these laws indicated that they were to come into effect after 90 days from the date of publication in the Official Gazette, Al Tamimi said.
The Minister of Finance has also announced that the implementing regulations of the Finance Laws (which is likely to refer to the Finance Lease Law, the Real Estate Finance Law and the Law on Supervision of Finance Companies) are to be drafted by the Saudi Arabian Monetary Agency (the Saudi Central Bank).
Commenting on the new laws, Hesham Al Homoud, the Head of Al Tamimi ’s Corporate and Commercial Department in Riyadh, said: "The introduction of these new laws has been keenly awaited for some time.”