RIYADH: The Saudi Real Estate Refinance Co., or SRC, a Public Investment Fund company, has signed an agreement to acquire a residential mortgage portfolio from Banque Saudi Fransi, known as BSF, marking the third such portfolio purchase between the two companies. 

The agreement, signed under the patronage of Minister of Municipalities and Housing and SRC Chairman Majid bin Abdullah Al-Hogail, aims to improve the efficiency and sustainability of Saudi Arabia’s mortgage market. BSF Chairman Mazin bin Abdulrazzaq Al-Romaih also attended the signing, the Saudi Press Agency reported. 

The deal targets mortgage market growth 

The agreement builds on cooperation between SRC and the bank in the residential mortgage market by providing liquidity to financing entities and strengthening their ability to continue offering financing solutions. 

It also supports the development of the secondary mortgage market and expands residential financing options in line with the objectives of the Housing Program and Saudi Vision 2030. 

SRC CEO Majeed bin Fahd Al-Abduljabbar said the agreement reflects the strength of the strategic partnership and mutual trust between the two sides, as well as their shared commitment to supporting the growth of Saudi Arabia’s residential mortgage financing ecosystem. 

Al-Abduljabbar said continued cooperation with financing entities helps provide liquidity and enables them to expand residential mortgage financing, while supporting the development of the secondary mortgage market and enhancing its efficiency and sustainability through refinancing solutions. 

Expanding Saudi mortgage solutions 

BSF CEO Badr bin Hamad Al-Salloom said the agreement extends the strategic partnership with SRC and reflects their shared commitment to supporting a more efficient and sustainable mortgage market. 

He added that the bank continues to expand financing solutions available to customers through the partnership and support the objectives of Saudi Vision 2030. 

SRC continues to work with its partners to enhance the efficiency of the mortgage financing ecosystem, broaden the investor base, develop the secondary market and create sustainable refinancing solutions that support sector growth and resilience. 

SRC was established by the PIF in 2017 and is licensed by the Saudi Central Bank to conduct real estate refinancing activities. The company works to develop Saudi Arabia’s mortgage market by providing liquidity to financing entities, supporting their ability to offer housing finance solutions to individuals and contributing to the objectives of the housing ecosystem and efforts to increase homeownership among Saudi families.