The Saudi Real Estate Refinancing Company—wholly owned by the Public Investment Fund—announced the signing of its third agreement with the General Organization for Social Insurance, worth 2 billion riyals, with the aim of refinancing the portfolio of the “Masaken” program, which is funded by the General Organization for Social Insurance. The signing took place in the presence of His Excellency the Minister of Municipal and Rural Affairs and Housing, Mr. Majid bin Abdullah Al-Hogail, Chairman of the Board of Directors of the Saudi Real Estate Refinancing Company, and His Excellency the Governor of the General Organization for Social Insurance, Mr. Mohammed bin Talal Al-Nahas.

The company explained in a press release that the agreement is an extension of two previous agreements that were signed, bringing the total value of refinancing agreements between the two parties to 5 billion riyals, as part of a strategic partnership to enhance liquidity in residential mortgage financing and facilitate home ownership for Saudi families through the “Masaken” program launched by the General Organization for Social Insurance in 2007, and to achieve the goals of the Housing Program—one of the programs under the Kingdom’s Vision 2030—to reach a homeownership rate of 70% by 2030.

The agreement is in line with the General Organization for Social Insurance’s commitment to work with the private sector to enhance the services provided to beneficiaries in all cities and regions of the Kingdom, under which Dar Al-Tamleek will manage and market the Masaken program to provide fixed-cost Murabaha financing solutions to employees and retirees in the public and private sectors, with the aim of increasing the homeownership rate in the Kingdom.

His Excellency Mr. Muhammad bin Talal Al-Nahhas, Governor of the General Organization for Social Insurance, said: “The General Organization for Social Insurance is proud to be an important part of the Kingdom’s housing system, and we have once again leveraged our prominent role to expand our partnership with the Saudi Real Estate Refinancing Company, as we work together to achieve the objectives of the housing program —one of the programs under the Kingdom’s Vision 2030—as the agreement will further these goals by providing homeownership solutions for Saudi families.”

For his part, Fabrice Susini, CEO of the Saudi Real Estate Refinance Company, stated that the agreement reflects the company’s objectives in the Saudi housing market by strengthening strategic partnerships with various entities to provide risk management solutions and increase liquidity in the market, noting that this agreement will contribute to achieving the company’s goals of increasing the homeownership rate among Saudi families, boosting the supply of residential mortgage financing, and reducing the cost of financing for Saudi families, as well as providing more dynamic financing solutions to build a strong residential mortgage sector in the Kingdom.

Meanwhile, Ghassan Al-Amoudi, CEO of Dar Al-Tamleek, highlighted the importance of this agreement—the third of its kind—as a testament to Dar Al-Tamleek’s strong management of the Masaken program over the past decade, The agreement also confirms that the Masaken Program is one of the most successful mortgage financing programs in the Kingdom. He emphasized Dar Al-Tamleek’s commitment to continuing its success and providing the highest levels of service, expressing his hope that the agreement will contribute to increasing homeownership opportunities for Saudi families.

It is worth noting that the Saudi Refinancing Company provides the necessary liquidity for real estate financiers to expand residential financing by pooling financing portfolios into Sharia-compliant securities for sale to local and international investors, and the pace of the company’s refinancing operations reflects a shift in the residential real estate financing model from “finance-to-hold” to “finance-to-sell,” thereby benefiting all stakeholders in the housing market by enhancing liquidity, reducing risk, and lowering the cost of financing for Saudi families.