Glossary of Saudi Arabian terminology
Glossary of Saudi Arabian terminology
Terminology used in real estate in Saudi Arabia.
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Image by Wajahat Mahmood via Flickr
This article is intended as a preliminary guide only and refers to some but not all elements required to consider in detail prior to starting any property dealings or due diligence. Property dealings are often complex, especially in foreign countries and we highly recommend you seek independent professional advice... read more...
There are certain terms that come up in real estate in Saudi Arabia that you may not be familiar with. These terms are useful to know when looking into real estate and living in Saudi Arabia.
Mutaween- Police who enforce Islamic Sharia Law
Sharia Law- The religious law governing the members of the Islamic faith
Salary Transfer- Many banks require the mortgage repayments to be taken out each month as a direct deposit. As salaries are deposited into this account, the automatic debit is known as a ‘salary transfer.’ This is the most common loan for expats.
Non-Salary Transfer- Mostly reserved for Saudi Arabian citizens, ‘Non-salary Transfers’ are when a set amount of a mortgage payment is to be paid on time, and you make the payment, as opposed to it being taken out automatically.
Ijarah finance- The most common way for foreigners to purchase real estate. ‘Under ijarah financing, the rate is variable, and the house technically belongs to the bank, and they rent it to you. Once you have paid off the house, the bank ‘gifts’ it to you.
Murabaha finance- Paying mortgage payments direct at a fixed interest rate. The property is in the name of the mortgagee, and this is mostly available to Saudi citizens.
Sulh Settlement- In Islamic law, this means amicable settlement
Currency- The SAR, Saudi Arabian Riyal
Unit of measurement- Saudi Arabia uses the metric system as its unit of measurement, and properties are measured in square metres.
See also:
Buying property in Saudi Arabia
Renting property in Saudi Arabia
This article and the above linked artciles are not complete and are intended as preliminary guides only. These guides refer to some elements to consider prior to starting any property dealings or due diligence. Property dealings are often complex areas, especially in foreign countries and we highly recommend you seek independent professional advice... read more...
