The Saudi Real Estate Refinance Company (SRC), a company of the Public Investment Fund (PIF), signed a memorandum of understanding (MoU) with the Public Investment Fund (PIF). On Sunday, October 6, 2024, a memorandum of understanding was signed with the Saudi Housing Guarantee Services Company “Damanat”, In order to ensure SRC’s residential real estate finance portfolios and acquired portfolios, This will then contribute to reducing the cost of financing for the target segments and increasing the number of beneficiaries of real estate financing. This was under the patronage of His Excellency the Minister of Municipalities and Housing and Chairman of the Board of Directors of the Saudi Real Estate Refinance Company, Mr. Majid bin Abdullah Al-Hogail.
The MoU, which was signed by the CEO of the Saudi Real Estate Refinance Company, Majeed Fahad Al-Abdul-Jabbar, The CEO of Damanat Company, Hossam Radwan, is a key pillar in expanding the scope of financing coverage to include different segments of beneficiaries to obtain a more comprehensive real estate finance market from the beneficiary side.
The MoU will also contribute to raising the attractiveness of the real estate finance market by developing the secondary market for real estate finance to support its growth and stability. Attracting more local and international investors by raising the creditworthiness of real estate finance portfolios owned by the Saudi Real Estate Refinance Company. The company is currently working with its partners to continue developing a secondary market that supports the real estate finance sector in the Kingdom.
The CEO of the Saudi Real Estate Refinance Company confirmed, This MoU reflects our commitment to contribute to achieving the goals of Saudi Vision 2030 by strengthening the real estate finance market and increasing the percentage of Emirati home ownership. In addition to attracting more local and international investors.
For his part, The CEO of Damanat said, The MoU comes within the framework of our endeavor to provide integrated financing solutions that enable large segments of the community to obtain real estate financing at an affordable cost. This enhances the opportunities for citizens to own their own homes, It contributes to the development of the real estate sector in the Kingdom.
It is noteworthy that the Saudi Real Estate Refinance Company was established in 2017 by the Public Investment Fund as part of the government initiatives to achieve the goals of the housing program within the Kingdom’s Vision 2030, to be a key pillar to support the entire housing system in the Kingdom by injecting liquidity into the residential real estate finance market in the Kingdom in an effort to sustain and stabilize it. The company obtained a license from the Saudi Central Bank in 2017 to operate in the field of real estate refinancing.
The Saudi Housing Guarantee Services Company “Damanat” – wholly owned by the Real Estate Development Fund – seeks to facilitate the journey of beneficiaries. This is done by providing innovative solutions and facilitated procedures to contribute to the sustainable development of the real estate finance sector.