In collaboration with the Ministry of Housing, the Public Investment Fund launched the Saudi Real Estate Refinancing Company, in line with the Kingdom’s Vision 2030, which aims to enhance the performance of the real estate sector, increase its contribution to GDP, and expand opportunities for Saudis to own adequate housing, with a target of 52% by the end of 2020.

The new financing company, whose board of directors is chaired by His Excellency the Minister of Housing, Mr. Majed Al-Hogail, is expected to stimulate development in the Kingdom’s housing sector by injecting liquidity into the real estate finance market, and by refinancing approximately 75 billion riyals for the Kingdom’s housing sector over the next five years, reaching 170 billion riyals by 2026.

The company will build its intermediary role by aligning the cash flow, capital, and risk management needs of mortgage companies with investors" risk tolerance levels and return-on-investment targets, strengthening standards in the mortgage sector, fostering stability and growth in the secondary market, and providing liquidity to it. The company adopts an acquisition strategy targeting mortgage portfolios to increase financial capacity and expand the operations of mortgage finance companies, It will also work to connect the investment capital of foreign and local investors with opportunities available in the Kingdom’s growing housing market.

The company’s operations will include issuing sukuk backed by mortgage contracts, in addition to providing short- and long-term direct financing services to mortgage finance companies.