Ministry of Justice headquarters
Saudi Arabia’s Ministry of Justice plans to set out a clear governance structure for executing the real estate transactions, CNBC Arabia reported, citing Ahmad Al-Salman, the Ministry’s Supervisor General of Real Estate Digitization Initiative.
“The electronic registration laid the foundation of the real estate exchange,” stated Al-Salman.
The new exchange will play a key role in regulating the market transactions, and a governance structure will prevent any violations or market manipulation, he added.
The sukuk, which will be listed on the real estate exchange, will be perpetual and exchangeable instruments via electronic transactions, and any related errors will be directly and swiftly addressed.
The real estate exchange model in other countries was studied. However, in Saudi Arabia, the Ministry of Justice is the central authority, responsible for dealing in properties. In addition, the Saudi market has a competitive advantage and is subject to a digital transformation process.
Al-Salman also indicated that the real estate exchange’s activities will not overlap with those managed by the real estate companies. He further forecast the new exchange to attract more investors to the market.
Al-Salman lately announced that the Saudi real estate exchange will be launched by Q4 2021, Argaam reported.
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