The Saudi Real Estate Refinance Company (SRC) has entered into a mortgage portfolio acquisition agreement worth SAR 3.4 billion with the Saudi National Bank (SNB). This agreement, one of the largest mortgage refinancing transactions in Saudi Arabia, aims to enhance market liquidity and support the development of the country’s secondary mortgage market.

The contract was signed by Tareq Al-Sadhan, CEO of SNB, and Majeed Al-Abduljabbar, CEO of SRC. They emphasized their dedication to improving homeownership opportunities for Saudi citizens through the refinancing of the mortgage portfolio, which will inject long-term liquidity into the residential mortgage market in the Kingdom.

Tareq Al-Sadhan stated that as the leading provider of mortgage financing in Saudi Arabia, SNB is committed to supporting homeownership and enhancing market liquidity. He highlighted that this agreement reflects the bank’s commitment to providing accessible and affordable home financing, contributing to the goals of Saudi Vision 2030, which aims to increase homeownership rates to 70%.

In his comments, Majeed Al-Abduljabbar noted that the strategic partnership with SNB is aligned with their vision to create a resilient housing finance ecosystem in Saudi Arabia. He explained that by providing liquidity and establishing a solid securitization framework, they are laying the groundwork for a sustainable mortgage market that benefits Saudi citizens seeking homeownership.

This transaction forms part of SRC’s ongoing efforts in mortgage portfolio acquisitions, further solidifying its role as a key liquidity provider in the secondary mortgage market. The collaboration between SNB and SRC not only enhances financial stability in the housing sector but also marks a significant step toward developing Residential Mortgage-Backed Securities (RMBS), which will attract local and international investors and boost market activity.