Real Estate

 The Saudi Real Estate Refinance Company (SRC), a subsidiary of the Public Investment Fund (PIF), has signed a memorandum of understanding (MoU) with global asset management giant BlackRock. The agreement, signed in New York City under the patronage of His Excellency Majed bin Abdullah Al-Hogail, Minister of Municipalities and Housing and Chairman of the SRC Board of Directors, aims to enhance the real estate finance market in Saudi Arabia by increasing institutional participation in capital markets within the sector.

During the Minister's official visit to the United States, a delegation from the Ministry of Municipalities and Housing finalized the MoU, which seeks to strengthen Saudi-American partnerships in urban development, construction, finance, and real estate. The signing was attended by Majeed Fahd Al-Abdul Jabbar, CEO of SRC, and Yazeed Al-Mubarak, Managing Director of BlackRock in the Middle East and CEO of BlackRock Saudi Arabia, alongside BlackRock President Robert Capito.

This partnership is expected to accelerate the development of real estate refinancing programs in Saudi Arabia and expand their reach through both local and international capital markets. A key focus of the agreement is to diversify funding sources via fixed income markets, which will contribute to the stability of the real estate finance market and align with the goals of the Kingdom's Vision 2030, including the Housing Program and Financial Sector Development Program.

Majeed Al-Abduljabbar, CEO of SRC, emphasized that the collaboration with BlackRock is part of SRC's broader strategy to involve both local and international investors in the Kingdom's real estate refinancing market. By working with regulators to establish scalable, well-regulated frameworks, SRC aims to create attractive investment opportunities in real estate-related securities and attract international institutional investors to support the Kingdom's economic transformation goals.

Yazeed Al-Mubarak, Managing Director of BlackRock Middle East and CEO of BlackRock Saudi Arabia, expressed the company's commitment to supporting SRC in developing Saudi Arabia’s housing-related capital markets. He highlighted BlackRock's role in pioneering mortgage refinancing solutions for Saudi banks and home finance companies, underscoring the shared objective of unlocking institutional capital to advance the asset management industry in line with Vision 2030.

BlackRock, originally founded as a mortgage-focused fixed income manager, continues to bring innovation and client-focused solutions to the Saudi market. This year, the company launched BlackRock Riyadh Investment Management (BRIM), a Riyadh-based investment team managing strategies across public and private markets, further contributing to the development of the Kingdom’s capital markets.

The Saudi Real Estate Refinance Company (SRC), established by the Public Investment Fund in 2017, plays a crucial role in supporting the housing system by injecting liquidity into the residential real estate finance market, ensuring its stability. SRC is licensed by the Saudi Central Bank to operate in real estate refinancing.

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