The Saudi Real Estate Refinance Company, a unit of Saudi wealth fund PIF (Public Investment Fund), has signed an MoU with the Saudi Mortgage Guarantees Services Company (Damanat) for guaranteeing the residential mortgage portfolios owned by SRC and those being acquired by it, thereby helping to cut financing costs for target segments and also boosting the number of beneficiaries.

 

The agreement will also contribute to raising the attractiveness of the real estate finance sector by developing the secondary market for real estate financing aimed at supporting its growth and stability, said a statement from SRC.

 

The deal will also help attract more local and international investors by enhancing the creditworthiness of the real estate financing portfolios owned by SRC, as the company is currently working with its partners to continue developing a secondary market that supports the real estate finance sector in the kingdom, it stated. 

 

According to SRC, this partnership is a fundamental pillar for expanding financing coverage to achieve a more inclusive real estate financing market in terms of beneficiaries.

 

The agreement was signed by Majeed Fahad Al Abduljabbar, the Chief Executive Officer of SRC, and Hossam Radwan, the CEO of Damanat under the patronage of Majed bin Abdullah Al Hogail, the Minister of Municipal Rural Affairs and Housing and Chairman of the Board of SRC. 

 

Al Abduljabbar said this partnership deal with Damanat reflects its commitment to contribute to achieving the goals of Vision 2030 by strengthening the real estate finance market, increasing the rate of homeownership among Saudi citizens, and attracting more local and international investors.

 

A fully-owned unit of Real Estate Development Fund, Damanat said it aims to streamline the beneficiary journey by providing innovative solutions and simplified procedures, contributing to the sustainable development of the real estate finance sector. 

 

This agreement is part of Damanat's efforts to provide integrated financing solutions that enable a broader segment of society to access affordable real estate financing, thereby enhancing citizens' opportunities to own their homes and contributing to the development of the real estate sector in the kingdom," remarked Radwan.

 

SRC was established in 2017 by the Saudi PIF as part of government initiatives aimed at achieving the housing program targets under the Kingdom’s Vision 2030. 

 

The company serves as a fundamental pillar in supporting the housing ecosystem by injecting liquidity into the residential real estate finance market, to ensure its continuity and stability. SRC has also obtained a licence from the Saudi Central Bank in 2017 to operate in the field of real estate refinancing.-TradeArabia News Service