The Saudi Real Estate Refinance Company, a Public Investment Fund company, has signed an agreement to acquire a SR1 billion ($266.6 million) mortgage portfolio from Bidaya Finance. The signing ceremony took place in the presence of Minister of Municipalities and Housing and Chairman of SRC Majid bin Abdullah Al-Hogail and Chairman of Bidaya Finance Abdulaziz bin Saleh Al-Omair.
The agreement, signed by SRC CEO Majeed bin Fahad Al-Abduljabbar and Bidaya Finance CEO Mahmoud Dahdouli, marks a continuation of SRC’s ongoing efforts to bolster the residential real estate finance market in the Kingdom and expand refinancing opportunities.
This portfolio, the largest among mortgage companies, underscores the commitment of both parties to deliver innovative mortgage solutions to citizens and to contribute to the goals of the Housing Program, a key initiative of Saudi Vision 2030, which aims to increase homeownership among citizens.
Al-Abduljabbar said the agreement is part of an expanded partnership with Bidaya Finance, to inject additional liquidity and boost stability in the Kingdom’s real estate finance market. “The agreement is a significant step toward achieving the strategic objectives of the Housing Program by offering flexible financing solutions to Saudi families,” he added.
“It is a key step in our efforts to forge strategic partnerships with leading financial institutions, aimed at developing an active secondary market for residential real estate financing in the Kingdom.”
Dahdouli, meanwhile, said: “This agreement with SRC represents a strategic milestone in strengthening our role in providing innovative financing solutions that contribute to the development of the securities market through mortgage portfolios.
“It also aligns with our vision to empower a brighter financial future for our clients to achieve their aspirations and meet their needs, aligning with the objectives of the Housing Program under the Kingdom’s Vision 2030 to increase homeownership among citizens.”
The SRC was established by the PIF in 2017 to develop the Kingdom’s real estate finance market. Licensed by the Saudi Central Bank to operate in the field of real estate refinancing, SRC plays a pivotal role in achieving the objectives of the Housing Program under Saudi Vision 2030, which seeks to increase homeownership rates among Saudi citizens. This is accomplished by providing liquidity to financiers, enabling them to offer affordable housing finance to individuals, and working closely with partners to support the Kingdom’s housing ecosystem.
