SRC, Al Rajhi Bank sign SAR 5 bln deal to purchase real estate financing portfolio

The signing ceremony

Saudi Real Estate Refinance Co. (SRC), wholly owned by the Public Investment Fund (PIF), signed an agreement with Al Rajhi Bank to refinance more than SAR 5 billion real estate financing portfolio.

The deal is the largest of its kind that the company has signed, SRC said in a statement.

The agreement was signed in the presence of Minister of Municipal, Rural Affairs and Housing and Chairman of SRC Majid Al-Hogail, and, Al Rajhi Bank Chairman Abdullah Al-Rajhi.

"This agreement is a milestone in our strategic approach to support the housing market in the Kingdom by providing flexible mortgage solutions to citizens," SRC CEO Fabrice Susini said in the statement.

The agreement comes within SRC strategic partnerships with financing agencies, including banks and real estate finance companies, with the aim of establishing an active and strong secondary market for residential real estate financing and providing the local market with the necessary liquidity.

This is in addition to enabling a larger number of citizens to benefit from flexible residential real estate financing solutions that suit their aspirations, which leads to an increase in home ownership rates in the Kingdom, in line with the goals of Vision 2030, the statement said.