SRC launches first mortgage-backed securities transaction under local securitization program to strengthen real estate finance market

The Saudi Real Estate Refinance Co. (SRC), a PIF-owned subsidiary, announced the launch of the Kingdom's first residential mortgage-backed securities (RMBS).

This landmark transaction forms part of SRC's efforts to develop the capital markets and enhance liquidity in the real estate finance sector by introducing, for the first time in the Saudi market, an innovative asset class that contributes to deepening capital markets and diversifying investment instruments through the securitization of residential real estate finance loans.

Securitization, which gives rise to RMBS, opens attractive investment opportunities in high-credit-quality assets with medium-term maturities. The transaction was executed under stringent regulatory frameworks and transparent controls, underscoring the maturity of the Kingdom's investment environment, reinforcing investor confidence in the local capital markets, and supporting the long-term stability of the financial sector.

Majid Al-Hogail, Minister of Municipalities and Housing, and Chairman of SRC, 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."

SRC CEO Majeed Al-Abduljabbar commented: "The launch of the first RMBS transaction represents a qualitative leap in the development of the Kingdom's secondary mortgage market. This achievement was made possible through close collaboration with our strategic partners: the Saudi Central Bank (SAMA), the Capital Market Authority (CMA), the Financial Sector Development Program, the Housing Program, and the Public Investment Fund Program."

He added: "This transaction will enhance liquidity in the real estate finance market, broaden the investor base, and enable financing institutions to manage capital and risk more efficiently. It also supports the deepening of capital markets and diversification of the national economy, marking an important first step in attracting both domestic and international investors."