SRC And Damanat Sign MoU To Guarantee Residential Mortgage Portfolios For Enhanced Financing Access

The Saudi Real Estate Refinance Company (SRC), owned by the Public Investment Fund, has entered into a memorandum of understanding with the Saudi Mortgage Guarantees Services Company (Damanat). This agreement focuses on guaranteeing residential mortgage portfolios that SRC owns and plans to acquire. The Ministry of Municipalities and Housing stated this initiative aims to reduce financing costs for specific segments and increase the number of beneficiaries.

Under the patronage of Majid Al-Hogail, Minister of Municipalities and Housing and Chairman of SRC's Board, the MoU was signed by SRC CEO Majeed Al-Abduljabbar and Damanat CEO Hossam Radwan. This collaboration is seen as a significant step towards expanding access to real estate financing, aiming to create a more inclusive market for beneficiaries.

The agreement is expected to enhance the attractiveness of the real estate finance market by developing a secondary real estate finance market. This development supports market growth and stability while attracting more local and international investors through improved creditworthiness of SRC's real estate financing portfolios.

SRC is actively working with partners to further develop this secondary market, which will strengthen the real estate finance sector in Saudi Arabia. The company plays a vital role in supporting the housing sector by injecting liquidity into the residential real estate finance market, ensuring its continuity and stability.

Majeed Al-Abduljabbar commented on the partnership: "This agreement reflects our commitment to contribute to achieving the goals of Vision 2030 by strengthening the real estate finance market, increasing the rate of homeownership among citizens, and attracting more local and international investors."

Hossam Radwan added that this agreement aligns with Damanat's efforts to make homeownership more accessible by providing affordable financing solutions. Damanat is fully owned by the Real Estate Development Fund and aims to streamline beneficiary journeys through innovative solutions and simplified procedures.

SRC's Role in Real Estate Financing

SRC was established in 2017 by PIF as part of government initiatives aligned with Vision 2030. In 2017, SRC obtained a license from the Saudi Central Bank to operate in real estate refinancing. The company is committed to supporting sustainable development within the real estate finance sector.

This partnership between SRC and Damanat represents a strategic move towards enhancing financial accessibility in Saudi Arabia's housing sector. By focusing on reducing costs and increasing beneficiary numbers, it aligns with broader national objectives under Vision 2030.

With inputs from SPA