The new mortgage and real estate financing laws, which were passed by the Cabinet last Monday, would bring about a drastic change in the real estate culture of Saudis, making them homeowners instead of home renters.

Housing Minister Shuwaish Al-Dowaihi said in a statement on Wednesday that the new laws would help solve the housing problem of Saudis as it would enable them to get funds for building homes.

"The new laws would also help real estate companies to present products suitable to various groups of citizens," the minister said, adding the executive bylaws would determine the period for repayment of loans.

The new laws would enable citizens to have different options to get funds for constructing their homes and implement other real estate projects. Referring to the lease financing law, Al-Dowaihi said it would enable citizens to own houses through installment payment.

The mortgage law will also strengthen Saudi citizens' capability to buy houses or real estate properties. By mortgaging registered property they will be able to get adequate loans from banks, he pointed out.

"All these new laws are steps taken in the right direction toward setting up an integrated system for establishing a sustainable housing market in the country," he said.

Saad Al-Ajlan, chairman of the trade committee and a member of the board of Riyadh Chamber of Commerce and Industry, said the new laws would boost the Kingdom's economy. "It will bring about a new real estate culture in the country, instead of renting residential units, people will have their own homes." He also expected that the new regulations would boost the construction materials sector.

Abdullah Al-Howaish, managing director and CEO of Amlak, praised the Cabinet decisions and said it would create a legislative atmosphere enabling individuals and companies to get adequate funds for their real estate projects.

"The market needs 200,000 housing units every year to meet growing demand," he said, adding that the suspension of decision on the mortgage law in the past posed a big challenge to the Kingdom's real estate market.

Al-Howaish said the new laws would help optimum use of real estate properties in the country. "Amlak was the first licensed company in the Kingdom to provide real estate financing. We have been offering various services and solutions to meet market needs," he said.

Abdullah Dahlan, chairman of the board of trustees of the Business and Technology University, said the new laws passed by the Cabinet would boost the Kingdom's real estate market.

"It will remove many obstacles faced to get finance for housing and real estate projects," said Dahlan, who is a member of Jeddah Chamber of Commerce and Industry's board of directors. The new laws would accelerate a real estate boom in the country, he added.

Naif Al-Odwani, chairman of Taif Chamber of Commerce and Industry (TCCI), said the new laws would help individuals and companies get finance to carry out various real estate projects. "The mortgage law will be the foundation of the Kingdom's real estate market," he said.

Ahmed Al-Aamoudi, deputy chairman of TCCI, expressed his hope that the new laws would contribute to reducing house rents within three years. "Saudis have a lot of real estate properties but were lacking funds to develop them. The new laws would solve this problem and boost the market."