SRC signs deal to strengthen residential mortgage market stability

Saudi Real Estate Refinance Co. (SRC), a wholly owned subsidiary of the Public Investment Fund (PIF), signed an agreement to purchase a residential mortgage finance portfolio from Saudi Awwal Bank (SAB), in the presence of the Minister of Municipalities and Housing and Chairman of SRC, Majed Al-Hogail.

The move is part of SRC’s efforts to support the Kingdom’s housing ecosystem and enhance the sustainability of the residential mortgage finance market by providing liquidity to financing entities and enabling them to expand their services.

The portfolio purchase aims to raise the efficiency of the residential mortgage market by offering more flexible financing options through banks and finance companies, allowing them to meet rising demand for homeownership and improve households’ access to suitable financing.

SRC CEO Majeed Al-Abduljabbar said the transaction with SAB marks another step toward strengthening liquidity and ensuring sustainable financing in the residential real estate market, while creating a supportive environment for lenders to offer products aligned with Saudi families’ needs.

He added that this contributes to easing the homeownership journey in line with the objectives of the Housing Program and Saudi Vision 2030.

The initiative highlights SRC’s key role in developing the secondary mortgage market and providing flexible liquidity and risk management solutions, supporting financing sustainability and expanding the beneficiary base across the Kingdom.

SRC was established by PIF in 2017 to develop Saudi Arabia’s mortgage finance market, after obtaining a license from the Saudi Central Bank to operate in real estate refinancing.

The company plays a central role in achieving the Housing Program’s Vision 2030 goals by increasing homeownership rates among Saudi citizens through providing liquidity to lenders, enabling affordable housing finance, and working closely with partners to support the national housing ecosystem.