Riyadh: Saudi Real Estate Refinance Co. and Arab National Bank Extend Home Loan Access
Citizens in Saudi Arabia are in for easier access to home loans as Saudi Real Estate Refinance Co. (SRC) extends its refinancing agreement with Arab National Bank (ANB), injecting SR500 million ($133 million) into the market.
Supporting the Kingdom’s Home Financing Market
This marks the second deal between SRC, owned by the Public Investment Fund, and ANB, signifying SRC’s dedication to supporting the Kingdom’s home financing market. The goal is to expand mortgage refinancing and provide funding solutions to real estate entities to drive growth.
Strategic Objectives of Vision 2030
Saudi Minister of Municipal and Rural Affairs and Housing, Majid Al-Hogail, emphasized the importance of the purchase agreement in enhancing financial sustainability within the real estate financing market to achieve the objectives of the Housing Program in Saudi Vision 2030. The deal aims to offer appropriate solutions to citizens in their homeownership journey.
Commitment to Sector Development
Both SRC CEO Majeed Fahad Al-Abduljabbar and ANB CEO Obaid Al-Rasheed expressed their commitment to supporting sector development by providing convenient property financing options to Saudi citizens. The extension of the partnership will increase market liquidity and enable the origination of new home financing portfolios.
Expanding Housing Options
In January, SRC and Al-Rajhi Bank entered into an agreement to expand housing options for the Kingdom’s residents, involving the purchase of a real estate financing portfolio valued at SR5.8 billion. Since then, SRC has signed multiple refinancing deals with leading banks and mortgage finance companies in Saudi Arabia to broaden citizens’ access to home financing solutions.
Enhancing Financial Ecosystem
Through these agreements, SRC offers liquidity, capital management, and balance sheet de-risking solutions to enhance the financing capacity of home financiers and originators. The collaboration between SRC and ANB is a testament to their dedication to supporting the national vision and contributing to the objectives of Vision 2030’s Housing Program.