SRC launches Saudi Arabia's 1st RMBS transaction

SRC rolls out maiden RMBS listing, marking Saudi Arabia’s foray into the securitization of residential real estate finance loans

Saudi Real Estate Refinance Co. (SRC) launched the first-ever residential mortgage-backed securities (RMBS) transaction in the Kingdom.

This landmark transaction is part of SRC’s efforts to develop the local market and enhance liquidity in the real estate finance sector by introducing, for the first time in Saudi Arabia, an innovative asset class that contributes to deepening capital markets and diversifying investment instruments through the securitization of residential real estate finance loans, SPA reported, citing a company statement.

Securitization, which gives rise to RMBS, paves the way for more attractive investment opportunities in high-credit-quality assets with medium-term maturities, it added.

According to SRC, the inaugural transaction was executed under stringent regulatory frameworks and transparent controls, underscoring the maturity of the Saudi investment environment, reinforcing investor confidence in the local capital market, and supporting long-term fiscal stability.

Minister of Municipalities and Housing as well as SRC Chairman Majid Al-Hogail stated, “The launch of the Kingdom’s first RMBS transaction marks a strategic step toward developing Saudi Arabia’s real estate finance market and enhancing its appeal to both domestic and foreign investors.”

This initiative provides innovative financing instruments that align with the objectives of Saudi Vision 2030 to raise homeownership rates and enable more Saudi families to own suitable homes, advancing sustainable economic growth and quality of life, he explained.

According to data available with Argaam, last week, the Saudi Central Bank (SAMA) announced granting SRC a no-objection clearance to introduce RMBS listings in the domestic market.