Prime Highlight:
- Saudi Real Estate Refinance Co. (SRC) has introduced Saudi Arabia’s first residential mortgage-backed securities (RMBS), marking a big step in the Kingdom’s financial sector.
- The launch supports Saudi Vision 2030 goals by boosting homeownership, strengthening the economy, and attracting more investors.
Key Facts:
- SRC, backed by the Public Investment Fund, was founded in 2017 and is licensed by the Saudi Central Bank.
- Earlier this year, SRC raised $2 billion through an international sukuk issuance as part of a $5 billion program to improve funding and liquidity.
Key Background:
The Saudi Real Estate Refinance Co. (SRC), backed by the Public Investment Fund, has introduced the country’s first residential mortgage-backed securities (RMBS). This action is regarded as a major step towards the establishment of the housing finance sector in the Kingdom and opening new avenues of investment.
The new securities will allow banks and lenders to package residential mortgage loans into tradeable investments. This is expected to increase liquidity in the market and attract more investors, both from Saudi Arabia and abroad.
Majid Al-Hogail, Minister of Municipalities and Housing and chairman of SRC, said the launch is an important move that supports Saudi Vision 2030. He noted that it will help more Saudi families buy homes, while also strengthening the economy and raising living standards.
The deal was done under clear rules and regulations, showing that Saudi Arabia is ready to use modern financial tools. It also reflects SRC’s goal to grow the capital market, expand the financial sector, and help more people own homes.
Earlier this year, SRC raised $2 billion through an international sukuk sale, as part of a $5 billion program aimed at improving liquidity. In 2024, the company partnered with global investment firm King Street to look into new real estate financing solutions and created an international platform to attract foreign investors.
SRC CEO Majeed Al-Abduljabbar called the RMBS launch an important step forward for Saudi Arabia’s secondary mortgage market. He credited the achievement to joint efforts with the Saudi Central Bank, the Capital Market Authority, and other national programs.
SRC, set up in 2017 and licensed by the Saudi Central Bank, helps make housing finance easier and more affordable. This new step supports Saudi Arabia’s Vision 2030 goal of increasing homeownership and strengthening the country’s financial system.
