The Saudi National Bank has strengthened the provision of long-term liquidity for its products in residential mortgage financing and to mitigate potential risks associated with mortgage financing by signing an agreement with the Saudi Refinance Company (SRC), which aims to purchase a mortgage portfolio belonging to the bank valued at over one billion riyals. The signing took place in the presence of Majed Al-Hogail, Minister of Municipal, Rural Affairs, and Housing and Chairman of the Company’s Board of Directors, and Ammar Al-Khudairi, Chairman of the Board of Directors of the Saudi National Bank.
The agreement represents the largest mortgage refinancing transaction in the Kingdom’s banking sector and aims to ensure the sustainable provision of long-term liquidity in the residential mortgage market and to strengthen the management of potential mortgage financing risks. The agreement was signed on behalf of the Saudi Refinance Company by Fabrice Susini, Chief , and on behalf of the bank by Majid Al-Ghamdi, CEO of Retail Banking.
Fabrice Susini explained that the agreement is an extension of the company’s ongoing efforts to expand its partnerships with mortgage lenders to achieve the goals of the Housing Program—one of the Vision 2030 initiatives—which aims to increase the homeownership rate among Saudi families to 70% by 2030 by supporting the mortgage market and financial institutions to provide the best innovative financial solutions, and to increase the real estate sector’s contribution to GDP.
He noted that the agreement with the Saudi National Bank is the largest of its kind for the refinancing of real estate portfolios in the banking sector and is part of the company’s ongoing efforts to support mortgage service providers through liquidity and risk management solutions to offer affordable mortgage financing.
For his part, Majid Al-Ghamdi emphasized that the long-term partnership with the Saudi Real Estate Refinancing Company will work to provide residential real estate financing solutions that meet the aspirations of Saudi families by providing the necessary financial liquidity to enhance the sustainability of financing solutions for families and expand the beneficiary base in light of the growing demand for residential financing, as well as providing the capital and risk management tools necessary for comprehensive operations and capital allocation to achieve the housing program’s objectives.
