Economic Insights – Update
The Saudi National Bank, together with the Saudi Real Estate Re-Finance Company, a prominent entity under the public investment fund of the Kingdom of Saudi Arabia, has finalized a significant agreement to acquire a real estate financing portfolio valued at 3.4 billion Saudi riyals. This transaction is recognized as one of the largest real estate refinancing operations undertaken in the Kingdom.
In a recent statement released by the Saudi Real Estate Re-Finance Company, the objective of this agreement is to bolster both the company’s and the bank’s commitment to enhancing housing accessibility for citizens through the refinancing of the portfolio. This move is expected to provide sustained liquidity to the housing real estate finance market in Saudi Arabia.
Aligned with the Kingdom’s Vision 2030, the housing sector aims to elevate the home ownership rate among citizens to 70%.
Tariq Al-Sadhan, CEO of the Saudi National Bank, emphasized the bank’s pivotal role as a partner in the “Grants for Re-Funding for Originate-To-Distribute (OTD)” program initiated by the Saudi Real Estate Re-Finance Company. He noted that this initiative serves to reinforce liquidity and ensures the financial stability of the housing sector.
Majeed Al-Abdul-Jabbar, CEO of the Saudi Real Estate Re-Finance Company, highlighted, “By facilitating liquidity and establishing a comprehensive supply framework, we are committed to developing a sustainable real estate financing market, enabling citizens to fulfill their home ownership aspirations.”
The statement indicates that this agreement is part of a series of recent acquisitions undertaken by the Saudi Real Estate Re-Finance Company, aimed at enhancing liquidity within the secondary market for real estate finance in Saudi Arabia.
Furthermore, the company stated that this agreement plays a crucial role in advancing the secondary market for real estate financing by offering a portfolio that supports long-term financial stability.
This initiative also lays the groundwork for the development of financially backed financial instruments, supported by the sector, which will enhance liquidity and activity, making the sector increasingly attractive to both local and international investors.
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