The Saudi Real Estate Refinance Company (SRC), a PIF company, has launched the Kingdom’s first Residential Mortgage-Backed Securities (RMBS).
The launch of the Residential Mortgage-Backed Securities forms part of SRC’s efforts to develop the capital markets and enhance liquidity in the real estate finance sector by introducing, for the first time in the Saudi market, an innovative asset class that contributes to deepening capital markets and diversifying investment instruments through the securitization of residential real estate finance loans.
Securitization, which gives rise to Residential Mortgage-Backed Securities, opens attractive investment opportunities in high-credit-quality assets with medium-term maturities.
The transaction was executed under stringent regulatory frameworks and transparent controls, underscoring the maturity of the Kingdom’s investment environment, reinforcing investor confidence in the local capital markets, and supporting the long-term stability of the financial sector.
With confident steps toward a more diversified economy, we launched the first local (RMBS) issuance
to build a more sustainable real estate financing market pic.twitter.com/0MhdmgOjMo
The launch underscores SRC’s prominent role in developing the secondary mortgage market. It reaffirms investor confidence in Saudi Arabia’s regulatory environment and its readiness to adopt advanced financial instruments that keep pace with developments in global capital markets.
Majeed Al Abduljabbar CEO – SRC
“The launch of the first RMBS transaction represents a qualitative leap in the development of the Kingdom’s secondary mortgage market. This achievement was made possible through close collaboration with our strategic partners: the Saudi Central Bank, the Capital Market Authority, the Financial Sector Development Program, the Housing Program, and the Public Investment Fund Program. This transaction will enhance liquidity in the real estate finance market, broaden the investor base, and enable financing institutions to manage capital and risk more efficiently. It also supports the deepening of capital markets and diversification of the national economy, marking an important first step in attracting both domestic and international investors.”
His Excellency Majid bin Abdullah Al-Hogail, Minister of Municipalities and Housing and Chairman of the Board of SRC, stated that, “The launch of the Kingdom’s first RMBS transaction marks a strategic step toward developing Saudi Arabia’s real estate finance market and enhancing its appeal to both domestic and foreign investors. This initiative provides innovative financing instruments that align with the objectives of Saudi Vision 2030 to raise homeownership rates and enable more Saudi families to own suitable homes, advancing sustainable economic growth and quality of life.”
