By
TBY
| Saudi Arabia | Oct 31, 2023
"SRC, owned by the Public Investment Fund (PIF), licensed and subject to the supervision of the Saudi Central Bank (SAMA), was established as a strategic move with a clear and robust mandate: to rejuvenate the residential real estate sector."
Saudi Arabia is currently in the midst of a significant economic transformation that has put the country in the international spotlight. As the world’s premier oil exporter, the Kingdom has recognized the need to diversify its economy, reducing its dependency on oil revenues. One sector that stands out in this diversification drive is real estate. With the ambitious economic reforms of the Vision 2030 initiative as a backdrop alongside a vastly rising Saudi population, the Kingdom’s real estate sector is poised for substantial growth. Central to this growth story is the Saudi Real Estate Refinance Company (SRC), an entity that’s reshaping the housing narrative of the Kingdom through its pioneering operations and landmark partnerships.
SRC, owned by the Public Investment Fund (PIF), licensed and subject to the supervision of the Saudi Central Bank (SAMA), was established as a strategic move with a clear and robust mandate: to rejuvenate the residential real estate sector. At its core, SRC’s mission revolves around expanding its refinancing portfolio, issuing sukuk and devising solutions that foster a stable, yet dynamic, real estate market. By bridging the existing gap between housing demand and supply, SRC is paving the way for increased homeownership, making home financing more accessible and affordable, aligning with the aspirations of the growing Saudi population and the visionary objectives of the country.
To better achieve its objectives of being an enabler and increasing home ownership in the Kingdom, SRC signed several partnerships with leading banks and mortgage finance companies in the Kingdom to provide liquidity and support the growth of the secondary mortgage market. SRC’s portfolio acquisitions, which have reached an impressive SAR42.8 billion, conveys a commitment to refinance a substantial portion of Saudi Arabia’s residential mortgage market by 2025.
The Kingdom’s journey toward economic diversification is a multifaceted one, with each sector playing a crucial role. In this context, the real estate sector, backed by entities like SRC, emerges as a key piece. Through sukuk issuances and portfolio acquisitions, SRC has accelerated the country’s housing and financial sector development goals in its march toward Vision 2030.
