The The National Real Estate Development Committee of the Council of Saudi Chambers that the new circular issued by the Saudi Central Bank requiring banks operating in the Kingdom to provide it with annual plans for the liquidation of real estate properties whose ownership has been transferred to them as a result of the settlement of debts owed by defaulting customers is a measure that had already been adopted by the banks.

In a statement, the committee clarified that the latest update aims to regulate and standardize the mechanism for submitting this data to the Central Bank, such that reports are submitted within 30 days of the midpoint and end of each calendar year, in accordance with the bank’s approved template.

It should be noted that the Central Bank emphasized in its recent circular the need for all banks and financial institutions to submit these annual plans for liquidating real estate they own in exchange for the debts of defaulting customers, within 30 days of the end of each calendar year, to enhance market transparency and regulate real estate assets associated with financial defaults.