A judicial document explained the Administrative Court in Al-Baha’s dismissal of a lawsuit filed by a citizen against the Al-Baha branch of the Real Estate Development Fund, after he demanded that the loan be disbursed from the Fund’s capital rather than from banking institutions, on the grounds that this constituted a clear violation of Cabinet Decision No. 82 dated 5/3/1435 regarding the regulation of housing subsidies.
In its «final ruling»—which was in favor of the Real Estate Fund—the Administrative Court in Al-Baha noted that its refusal to grant the citizen a housing loan from its capital was in accordance with the clear and explicit provisions of the law, and did not constitute a passive refusal to act on a matter it was obligated to address. The court had previously dismissed the case on the grounds of what it termed «selective application of the law,» This does not invalidate the plaintiff’s claim that the defendant, the Real Estate Fund, violated the provisions of Islamic Sharia by referring matters to banks, since what it provides is subsidized financing in the form of granting funds through murabaha to the purchaser.
