The government's commitment to provide homes to citizens was given further impetus this week with the Real Estate Development Fund receiving loan applications from citizens. A reported 400,000 people have already filed applications, an indication of the great desire among a large section of the populace to have a place of their own. It's commendable that the government has eased the criteria for applicants. Now citizens no longer have to own a plot of land to start the process rolling. The Real Estate Development Fund is one of the key vehicles being used by the government to provide a better life for citizens. As part of the stimulus package announced earlier this year, King Abdullah, Custodian of the Two Holy Mosques, issued a decree for the fund's capital to be increased to SR40 billion and the limit on loans to be raised from SR300,000 to SR500,000. It was also announced earlier this year that the General Housing Commission has been ordered to build 500,000 homes all over the country at a cost of SR250 billion. Other housing developments include the National Guard building 17,000 units and the General Organization for Social Insurance constructing 691 units. There are still teething problems being experienced by the fund. This includes the requirement by the fund that women can only apply for loans if they are aged 40 and have been divorced for two years. The National Society for Human Rights (NSHR), after receiving a number of complaints, is investigating the matter. From the NSHR's preliminary findings, as reported in Okaz/Saudi Gazette a few days ago, the stipulation is clearly discriminatory, because there is no such requirement for men and the Kingdom has signed and ratified the United Nations' Convention on the Elimination of all Forms of Discrimination Against Women (CEDAW). The other critical issue for the Kingdom is the need for a mortgage law, which is expected to be passed in 2012 after many delays. This will reduce lending risks for commercial banks which will allow more loans for middle and low income earners. This legislation is needed because the creation of a subprime market – of individuals who can barely own houses – has to be avoided at all costs. The United States is a tragic example of what happens in an unregulated environment, with many millions of Americans having lost their homes. __
