Riyadh - Mubasher: The Saudi Real Estate Refinance Company (SRC), a fully owned subsidiary of the Public Investment Fund (PIF), has launched the Kingdom’s first Residential Mortgage-Backed Securities (RMBS).
The transaction backs SRC’s efforts to develop the capital markets and boost liquidity in the real estate finance sector, according to a press release.
It will introduce an innovative asset class that contributes to fostering capital markets and diversifying investment instruments through the securitization of residential real estate finance loans.
Securitization offers investors medium-term, high-credit-quality opportunities under stringent regulatory controls.
The process was executed under strict regulatory frameworks, reinforcing investor confidence and supporting financial sector stability.
Majid bin Abdullah Al Hogail, 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,” Al Hogil noted.
Majeed bin Fahd Al Abduljabbar, CEO of SRC, commented: “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 PIF Program.”
He continued: “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,” the CEO added.
In March 2025, SRC inked a SAR 3.4 billion agreement to acquire a mortgage portfolio from the Saudi National Bank (SNB).
