SRC buys 2 mortgage portfolios worth SAR 10B from Al Rajhi Bank

Saudi Real Estate Refinance Co. (SRC) was established by the PIF in 2017, in the efforts to reinforce the Saudi mortgage market

Saudi Real Estate Refinance Co. (SRC) — owned by the Public Investment Fund (PIF) — signed an agreement to purchase two mortgage portfolios from Al Rajhi Bank, at a total value of SAR 10 billion, according to a statement today, Nov. 18.

Sealed on the sidelines of Cityscape Global 2025, the agreement entails Al Rajhi Bank originating mortgage portfolios and SRC subsequently refinancing them, based on the originate-to-distribute (OTD) model. This model enables banks and financing companies to recycle liquidity and expand the scope of real estate financing provision.

The goal of the OTD model is to ensure continuous market liquidity and support securitization activities, thereby strengthening the development of the secondary market for real estate financing in Saudi Arabia.

The move seeks to establish the stability and sustainability of the local mortgage system by supporting financing entities with effective liquidity and capital management solutions.

It also enables banks to continue expanding real estate financing provision, alongside boosting opportunities for citizens to own homes.

According to SRC, the OTD model represents a practical step towards developing the secondary market and enabling financing entities to expand residential financing.

On its part, Al Rajhi Bank highlighted that this model empowers the bank to meet the increasing demand for mortgage and facilitate homeownership for a wider segment of citizens.

SRC was established by the PIF in 2017, with the aim of developing the Saudi mortgage market, after obtaining a license from the Saudi Central Bank (SAMA) to operate in this specific field.