Majeed Abduljabbar, global head of treasury and capital markets at SRC
Saudi Real Estate Refinance Co. (SRC) held SAR 7 billion assets by the end of 2020, Majeed Abduljabbar, global head of treasury and capital markets, told Argaam in an exclusive.
Abduljabbar expects SRC’s assets to double this year driven by market growth.
The completion of SAR 4 billion sukuk issuance was part of the company’s SAR 10 billion sukuk program in 2021, he noted.
The issuance will contribute to boosting the real estate market liquidity and stability, which will positively reflect on financing costs and facilitate home ownership for citizens, Abduljabbar said.
Moreover, the issuance is the first of its kind in the Kingdom, being mainly backed by the government. The government, represented by the Ministry of Finance, provided some guarantees to secure assets financially and guarantee the entire program. In addition, SRC sukuk received similar treatment as any other government sukuk by the Saudi Central Bank (SAMA).
Commenting on the impact of sukuk issuance on Saudi nationals and interest rate, Abduljabbar explained that the interest rate is part of the global and SAMA’s policy rates, adding that the interest is low and helps nationals own homes.
Meanwhile, mortgage loans hit SAR 136 billion in 2020 with 6,333 new contracts, he noted.
Abduljabbar expects the first quarter of the year to see growth in mortgage loans for Saudi nationals.
The mortgage portfolios of Al Rajhi Bank, National Commercial Bank (NCB) and Riyad Bank saw significant growth, he pointed out, expecting other banks to launch more initiatives and participate in market growth.
More cash will be also be available on demand of different real estate firms and increased competition, which will be more appropriate for nationals, he concluded.
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