Saudi Housing Minister Majed Al-Hogail Oversees SRC's First International Sukuk Listing On London Stock Exchange

Saudi Arabia has taken a significant step in the global financial arena with the listing of its first international sukuk programme, valued at $5 billion, on the London Stock Exchange. This initiative, overseen by Majed Al-Hogail, Minister of Municipalities and Housing and Chairman of the Saudi Real Estate Refinance Company (SRC), aims to boost the Kingdom's mortgage finance market by increasing liquidity and attracting foreign investments.

The listing aligns with Saudi Vision 2030's goals, particularly in enhancing the housing sector and providing citizens with sustainable home financing options. It also supports the Financial Sector Development Program and Public Investment Fund (PIF) initiatives. The ceremony was attended by notable figures, including Saudi Ambassador to the UK Prince Khalid bin Bandar bin Sultan and Lord Mayor of the City of London Alastair King.

Al-Hogail highlighted that this listing showcases the strength of Saudi Arabia's economy and its real estate market's appeal to international investors. He noted that issuing international sukuk helps integrate Saudi Arabia into global financial markets, increases foreign direct investment, and diversifies funding sources for housing.

SRC plays a crucial role in ensuring mortgage finance sustainability by developing innovative solutions for mortgage lenders. These efforts aim to expand financing options for citizens at competitive rates. The sukuk issuance is part of Saudi Arabia's strategy to boost foreign investment in housing, targeting a 70% homeownership rate by 2030 through sustainable financing solutions.

SRC CEO Majid Al-Abd Al-Jabbar stated that successfully listing the Sukuk Programme reflects global confidence in Saudi Arabia's economy and its mortgage finance sector's sustainability. This milestone opens doors for strategic partnerships with leading global financial institutions, enhancing SRC's ability to offer advanced financing solutions.

This move further solidifies Saudi Arabia's real estate market as a global investment hub. The Kingdom benefits from a robust economic environment, flexible regulations, and strategies to attract international investments, contributing to sustainable housing sector development.

Role of SRC in Housing Development

The Saudi Real Estate Refinance Company was established by the Public Investment Fund in 2017 to develop the Kingdom's real estate finance market. Licensed by the Saudi Central Bank for real estate refinancing operations, SRC plays a pivotal role in achieving objectives under Saudi Vision 2030's Housing Program.

SRC provides liquidity to financiers, enabling them to offer affordable housing finance. It collaborates closely with partners to support the Kingdom's housing ecosystem, aiming to increase homeownership rates among citizens through accessible financing options.

With inputs from SPA