Real Estate Development Fund, Saudi Mortgage Refinance Company and National Bank of Saudi Arabia signed a memorandum of understanding yesterday to promote the housing sector in the Kingdom and advance the development of the secondary market for real estate finance, under the patronage of H.E. Minister of Municipalities and Housing Mr. Majid bin Abdullah Al Haqeel.
Minister of Municipalities and Housing Mr. Majid bin Abdullah Al Haqeel.
Creating mortgage portfolios
This MoU between the Saudi Real Estate Refinance Company and the Saudi National Bank comes as part of efforts to strengthen cooperation through the bank's ongoing creation of real estate finance portfolios and their refinancing by the company.
This cooperation aims to strengthen the cooperation between the Saudi Real Estate Refinance Company and the National Bank of Saudi Arabia (NBS). This cooperation aims to provide liquidity in the market to ensure a continuous flow of real estate financing and support the company's securitization activities, thus contributing to the development of the secondary market for real estate financing in the Kingdom.
This partnership seeks to enhance cooperation through the bank's continuous creation of real estate financing portfolios and refinancing by the company. This partnership seeks to accelerate efforts to develop mortgage-backed securities at the local and international levels, which contributes to supporting the objectives of the housing program by developing an integrated and sustainable system for the real estate finance market in the Kingdom, in addition to contributing to providing wider options for affordable housing solutions.
On the other hand, the company launched its securitization activities, which contributes to the development of the secondary market for real estate finance in the Kingdom. On the other hand, on the sidelines of the signing of the agreement, Minister Al Haqeel launched the financing offer provided by the Saudi National Bank, which starts from 2.59% for those wishing to own residential units under construction.
On the other hand, Minister Al Haqeel launched on the sidelines of the signing of the agreement. The CEO of the Real Estate Development Fund, Mansour bin Madi, explained that the strategic partnership with the Saudi Refinance Company and the financing authorities aims to strengthen the residential real estate finance market and reduce the cost of financing for Saudi families through various financing and housing options that meet the needs and desires of the beneficiaries of “Residential” within the housing support program to achieve the objectives of the housing program - one of the programs of the Kingdom's Vision 2030.
The CEO of the Real Estate Development Fund, Mansour bin Madi, said that the strategic partnership with the Saudi Refinance Company and the financing authorities aims to strengthen the residential real estate finance market and reduce the cost of financing for Saudi families. <Majeed Fahad Al Abduljabbar, CEO of Saudi Real Estate Refinance Company, said: “This partnership with the Saudi National Bank represents a pivotal step in our efforts to develop the real estate finance market in the Kingdom. Through this cooperation, we aspire to provide innovative solutions that ensure enhanced liquidity, enable financing entities to provide mortgage financing options in line with market needs, and contribute to creating more options for citizens to realize their housing aspirations in line with the goals of Vision 2030.”
Majid Fahad Al-Abduljabbar, CEO of Saudi Mortgage Refinance Company, said.
For his part, Tariq Al Sadhan, CEO of Saudi National Bank, emphasized that the partnership with SARR reflects a commitment to the growth of the housing sector and the development of a vibrant secondary market for real estate finance that enhances the Kingdom's economic diversification journey."
