The Saudi Real Estate Refinancing Company SRC —a subsidiary of the Public Investment Fund—signed a memorandum of understanding with the Saudi Housing Guarantee Services Company “Damanat”; with the aim of guaranteeing the residential mortgage portfolios owned by SRC and those being acquired, thereby contributing to reducing the cost of financing for the target segments and increasing the number of beneficiaries of mortgage financing, under the patronage of His Excellency the Minister of Municipalities and Housing, Chairman of the Board of Directors of the Saudi Real Estate Refinancing Company, Mr. Majid bin Abdullah Al-Hogail.
The memorandum was signed by the CEO of the Saudi Real Estate Refinancing Company Mortgage Refinancing Company Majid Fahad Al-Abduljabbar, and the CEO of Damanat, Hossam Radwan, is a cornerstone for expanding the scope of financing coverage to include different segments of beneficiaries, thereby creating a more inclusive mortgage market from the beneficiaries" perspective.
The memorandum will also contribute to enhancing the attractiveness of the mortgage financing by developing the secondary market for real estate financing to support its growth and stability, and attract more local and global investors by enhancing the creditworthiness of the real estate financing portfolios owned by the Saudi Real Estate Refinancing Company, as the company is currently working with its partners to continue developing a secondary market that supports the real estate finance sector in the Kingdom.
The CEO of the Saudi Real Estate Refinance Company emphasized that this memorandum reflects our commitment to contributing to the achievement of the Saudi Vision 2030 goals by strengthening the real estate finance market and increasing home ownership among citizens, in addition to attracting more local and global investors.
For his part, the CEO of Damanat explained that the memorandum comes as part of our efforts to provide integrated financing solutions that enable broad segments of society to access affordable mortgage financing, thereby enhancing opportunities for citizens to own their own homes and contributing to the development of the real estate sector 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 achieve the housing program targets under the Kingdom’s Vision 2030; to serve as a cornerstone for supporting the Kingdom’s entire housing system by injecting liquidity into the residential mortgage market; in an effort to ensure its continuity and stability. The company obtained a license from the Saudi Central Bank in 2017 to operate in the field of real estate refinancing.
The Saudi Housing Guarantee Services Company ”Damanat”—wholly owned by the Real Estate Development Fund—seeks to facilitate the journey of beneficiaries by providing innovative solutions and streamlined procedures to contribute to the sustainable development of the real estate finance sector.
