Saudi Real Estate Refinance Company Partners With Arab National Bank For Portfolio Acquisition

The Saudi Real Estate Refinance Company (SRC), backed by the Public Investment Fund (PIF), has taken a significant step by entering into an agreement with Arab National Bank. This move is poised to acquire a substantial real estate finance portfolio.

This strategic decision was announced under the auspices of Majid bin Abdullah Al-Hogail, Minister of Municipalities and Housing and Chairman of the SRC Board, alongside Salah Rashid Al-Rashed, the Chairman of the Arab National Bank Board.

This partnership is not merely a business transaction but highlights a deeper collaboration aimed at revitalizing the Kingdom's real estate finance market. It is structured to inject liquidity into the lending sector, paving the way for more accessible home ownership.

This initiative is perfectly aligned with the Housing Program's goals under the Kingdom's Vision 2030, targeting to elevate home ownership rates to 70% amongst citizens. It underscores a mutual commitment towards fostering market growth and ensuring long-term sustainability.

Majeed Fahd Al-Abduljabbar, the CEO of SRC, expressed that this alliance with Arab National Bank is a testament to their shared objective of facilitating home ownership for citizens. By making the secondary real estate finance market more efficient and sustainable, this agreement is set to attract more investments from both local and international investors, aligning with the Kingdom's future ambitions.

Furthermore, Obaid bin Abdullah Al-Rasheed, CEO of Arab National Bank, delineated the partnership as a crucial step in the bank's mission to innovate financing solutions that bolster market growth and ensure its sustainability. He emphasized the role of this collaboration in establishing a robust and trustworthy real estate market, marked by efficiency.

This agreement is part of a broader initiative led by the Ministry of Municipalities and Housing aimed at empowering citizens and creating a cohesive, stable financing landscape. Such initiatives are essential in propelling the Kingdom towards fulfilling its housing and broader economic objectives, marking a milestone in the journey towards Vision 2030.

Since its establishment in 2017 by the PIF, SRC has been instrumental in developing Saudi Arabia's real estate finance market. Operating with a license from the Saudi Central Bank (SAMA), SRC has been pivotal in providing liquidity to lenders.

This, in turn, has facilitated them in offering more affordable real estate financing options to individuals. By working closely with its partners, SRC is dedicated to enhancing the housing ecosystem in Saudi Arabia, contributing significantly to the Vision 2030 goal of increasing home ownership among Saudi citizens.