Shura Council

Experts: Real estate prices in Saudi Arabia will fall gradually

Expected to decrease by up to 30 % of land and real estate value. Real estate experts expect property prices in Saudi Arabia to decline gradually over the coming years and return to normal levels.
According to their forecasts, this will only happen with implementing the new regulation of fees on undeveloped plots of land in urban areas (white lands), the decline in real estate mortgage and the drop in oil prices in the Kingdom. Prices are expected to fall by up to 30 % of the land and real estate value, reports
On this basis, Ihsan Buhulaiga, a former member of the Shura Council and an economic expert, says: “White lands’ law will ensure that landlords have only two alternatives: the first one is selling the land and the other is to develop an economic project based on market need.”
Eng. Mohammed Babahar says: “These new procedures are considered an excellent step to cure the Saudi real estate market and escape the inflation that has swept the market and pushed the prices up by more than 300 % and doubled the rental rates.”

Sukuk law to be deliberated by Shura council, Wednesday

The new Egyptian Sukuk law will be approved on Wednesday by the cabinet before being referred to the Shura Council on the same day. It is fully Sharia-compliant, and it will have a special Sharia committee to oversee its implementation, said Ahmed El-Najjar, member of the economic committee at the Freedom and Justice Party (FJP) and advisor to the minister of finance. The sukuk revenues will be used to bridge the budget deficit gap in an indirect way. However, they will not be used as an alternative to regular debt instruments, but will, rather, function more within a complimentary capacity.

Shura Council seeks national consensus on sukuk

The economic committee of the Shura Council prepared a draft law for sukuk, which differs from the Ministry of Finance’s current project regarding sukuk. According to Saeed Aref, a member of the council’s economic committee, the draft law grants foreigners the right to invest in sukuk usufruct for a maximum duration of 40 years, saying there will be no maximum percentage of ownership. Al-Azhar will be consulted to see the compatibility of the law with Sharia before the end of dialogue sessions, he added.

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