Saudi Real Estate Refinance Company (SRC) has entered into a refinancing deal worth $533.35 million (2 billion riyals) with the kingdom’s largest social insurance agency General Organization for Social Insurance of Saudi Arabia (GOSI).
Under the deal, SRC will refinance the GOSI-backed portfolio of housing called Masakin, as per the statement. The agreement is in line with the kingdom’s goals of the housing program, which is one of the core pillars of Vision 2030. This set a goal of boosting homeownership to 70 percent in the kingdom by the end of this decade.
Further, the collaboration demonstrates GOSI’s commitment to engaging with the business sector to improve its services for beneficiaries across the Kingdom. The partnership is a key component of the Masakin Program, a GOSI-sponsored effort in which Dar Al Tamleek offers fixed Murabaha home financing solutions to government and private sector employees, as well as retirees, in order to promote homeownership in the Kingdom.
Mr. Mohammed Al Nahhas, Governor of GOSI said, “At GOSI, we are proud to be an integral part of the housing ecosystem in the Kingdom. Our crucial role has enabled us to partner with SRC once again, where we create synergies to realize the Vision 2030 housing program objectives. This agreement will help us realize these objectives and facilitate affordable housing in the Kingdom.”
Fabrice Susini CEO – SRC
“This transaction demonstrates that SRC’s refinancing model for the Saudi housing market works, and we will continue to collaborate with strategic partners to provide greater liquidity and risk management solutions in this market. The partnership with GOSI further accelerates our purpose of achieving greater homeownership in the Kingdom. Our work with organizations such as GOSI makes home financing even more accessible and affordable to citizens whilst providing additional dynamism to the Kingdom’s robust home financing.”
Saudi Real Estate Refinance Company (SRC)
SRC was founded in 2017 by Saudi Arabia’s sovereign wealth fund, the Public Investment Fund, to aid in the expansion of homeownership among Saudi nationals and the development of the kingdom’s mortgage finance sector. It does not lend directly to consumers, but it does offer liquidity to the house loan market by purchasing mortgages from banks and other lenders, allowing them to lend more to the sector.
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