His Excellency the Minister of Commerce and Investment, Dr. Majid bin Abdullah Al Qasabi, expressed his sincere thanks and appreciation to the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al Saud, and to His Royal Highness Prince Mohammed bin Salman bin Abdulaziz, Crown Prince and Deputy Prime Minister and Minister of Defense, for approving the Commercial Mortgage System, which organizes and regulates the commercial mortgage procedures and guarantees the rights of all parties, besides maximizing the gains and effects resulted out of this system.
H. E. pointed out that the Commercial Mortgage System comes as part of the accelerated steps to build the legislative structure and regulation for the commercial systems. This reflects clearly the objectives of the Kingdom’s Vision 2030, which seeks to improve the business environment and investment.
H.E. Dr. Al-Qasabi stressed that the Commercial Mortgage System enhances the contributions of the private sector in the development process, and raises the rates of the national economy growth and its efficiency and performance, as well as improves its competitiveness in line with the global developments. This system also preserves the rights of all parties involved in the commercial and financial process, besides enabling the private sector institutions to benefit from their operational assets and to obtain the necessary financing effectively.
The Commercial Mortgage System maximizes the access of SMEs to their assets and enables them to mortgage and utilize their operational assets at the same time. It also guarantees the rights of mortgage lenders, also facilitates the procedures for the execution process on the mortgaged property upon any breach, besides expanding the scope of liable mortgage assets and the enforcement scope of the commercial mortgage contracts.
H.E. Al Qasabi concluded his statement by stressing the keenness of the Trade and Investment System on creating a legislative structure and regulation that would stimulate and support business and investment environment and enable the contribution of the private sector institutions. H. E. Dr. Al Qasabi pointed out that the approval and the adoption of the Commercial Mortgage System reflects positively on the business environment, and improves the Kingdom's credit rating and its rank in the targetable World Indexes.
In this context, the new mortgage system has adopted a set of principles and concepts that are in line with the comparative best practices, which aim to make a qualitative leap forward for the commercial and investment sector in the Kingdom and to build sustainable economic entities for the benefit of the business community. The new Commercial Mortgage System aims basically to enhance the credit market in the Kingdom by creating the opportunities and conditions for the commercial institutions to get the necessary finance, besides enabling the asset owners of making use of the potential value of such assets.