The Saudi Real Estate Refinancing Company (SRC)—a subsidiary of the Public Investment Fund— – a new agreement to purchase a mortgage financing portfolio worth 500 million Saudi riyals from the Arab National Bank (ANB), in the presence of His Excellency Majid bin Abdullah Al-Hogail, Minister of Municipal, Rural Affairs, and Housing and Chairman of the Company’s Board of Directors, and the Chairman of the Board of Directors of the Arab National Bank, Salah bin Rashid Al-Rashid.
The agreement, signed by the CEO of the Saudi Real Estate Refinance Company, Majid bin Fahd Al-Abduljabbar, and the CEO of Arab National Bank, Obaid bin Abdullah Al-Rashid, as an extension of the company’s ongoing efforts to support the residential mortgage market in the Kingdom by expanding mortgage refinancing and providing SRC solutions to mortgage lenders to support growth.
This is the second agreement between SRC and the Arab National Bank (ANB), demonstrating both parties" commitment to supporting the residential mortgage market in the Kingdom by providing suitable mortgage solutions to citizens, in an effort to help achieve the goals of the Housing Program—one of the Saudi Vision 2030 initiatives—to increase the percentage of citizens who own homes.
The CEO of the Saudi Real Estate Refinancing Company explained that the agreement comes as part of ongoing efforts to support the residential real estate market in the Kingdom and contribute to providing flexible financing solutions for Saudi families by expanding the partnership with the Arab National Bank, which will help inject more liquidity into the market and drive growth in the total value of residential mortgage portfolios in the Kingdom. He added that the agreement represents an extension of the successful cooperation with the Arab National Bank and an important step toward achieving the strategic objectives of the Housing Program.
For his part, the CEO of Arab National Bank (ANB) said: The continuation of the strategic partnership with SRC embodies our shared vision of supporting the Kingdom’s housing market and reflects our commitment to our role in strengthening the real estate finance sector and the financial services sector, in addition to our active participation in achieving the objectives of the housing program stemming from Saudi Vision 2030.
This step is part of a series of agreements between the Saudi Real Estate Refinancing Company and various leading financial institutions in the Kingdom, including banks and real estate finance companies, where the company provides liquidity and risk management solutions within balance sheets; with the aim of supporting the efforts of financing institutions and enhancing their capacity for growth in the real estate finance market, thereby increasing homeownership rates in the Kingdom.
It is worth noting that the Saudi Real Estate Refinancing Company was established in 2017 by the Public Investment Fund as part of government initiatives to support the housing program under Saudi Vision 2030; to serve as a pillar and key driver for the growth and sustainability of residential real estate financing in the Kingdom. The company obtained a license from the Saudi Central Bank to operate in the field of real estate refinancing.
As part of its vision, the company aims to provide innovative mortgage refinancing solutions. It is also committed to continuing to develop the Saudi mortgage market, providing liquidity, and supporting lenders to achieve further growth in homeownership rates among citizens.
