Al Hogail: Saudi Arabia target over $40B in mortgage refinancing by 2030

Majed Al Hogail, Minister of Municipalities and Housing (MOMAH)

Minister of Municipalities and Housing (MOMAH) Majed Al Hogail said, on Nov. 13, that Saudi Arabia is working to develop its housing finance market and link mortgage financing to long-term capital sources, supporting market sustainability, expanding affordable housing options and creating more opportunities for cooperation with investors.

Speaking at the 2026 Global Investor Summit on Affordable Housing Finance in Virginia, US, Al Hogail noted that Saudi Real Estate Refinance Company (SRC) targets refinancing of more than $40 billion by 2030.

He added that this would create opportunities for investors to participate in fixed-income instruments and Saudi mortgage-backed securities, as well as cooperate in securitization, guarantees and data, and develop innovative financing products and modern credit risk management technologies.

Saudi Arabia offers a market underpinned by long-term housing demand, with financing, guarantee and servicing instruments evolving within a clear regulatory framework overseen by the relevant authorities, particularly the Saudi Central Bank (SAMA) and the Capital Market Authority (CMA), he said.

The minister invited investors to participate in developing the Saudi housing finance market in ways that serve families and create sustainable investment opportunities.

He noted that housing demand in the Kingdom is supported by a young population, with Saudi homeownership rising from around 47% in 2016 to more than 66% by the end of 2025. The Kingdom targets a homeownership rate of 70% by 2030.

Approximately one million families have benefited from housing support programs, representing around 25% of Saudi households, he added.

Developing a balanced housing market requires increasing supply, improving development efficiency and directing support to eligible beneficiaries, alongside providing diverse housing units at competitive prices, regulating landlord-tenant relations, enhancing transparency and protecting the rights of parties involved in off-plan sales, Al Hogail indicated.

He further added that higher global financing costs have affected household purchasing power, underscoring the importance of innovation in financing structures through diversifying liquidity sources, efficiently distributing risks, broadening the investor base and developing more stable, long-term financing products for households.

Al Hogail revealed that Saudi Arabia's mortgage finance market is valued at around $260 billion, while mortgage refinancing transactions amount to approximately $18.7 billion.

Issuances by SRC under its international sukuk program listed on the London Stock Exchange have exceeded $7.2 billion. More than 300 institutional investors participated in the company's inaugural $2 billion issuance, he added.

He also highlighted five pillars underpinning Saudi Arabia's housing finance ecosystem: government guarantees, financing guarantees, securitization, financing services and data standardization. These pillars help enhance liquidity, manage risks, broaden the investor base and improve disclosure quality on financing portfolio performance.