SRC and Hassana Investment Company Sign MoU to Develop Securitization Markets in Saudi Arabia

Real Estate

SRC and Hassana Investment Company Sign MoU to Develop Securitization Markets in Saudi Arabia

The Saudi Real Estate Refinance Company (SRC), a Public Investment Fund (PIF) company, has signed a Memorandum of Understanding (MoU) with Hassana Investment Company (Hassana), the investment arm of the General Organization for Social Insurance. The partnership aims to advance the objectives of Saudi Arabia’s Housing Program and Financial Sector Development Program, in line with Vision 2030. The MoU signing ceremony was attended by His Excellency the Minister of Municipalities and Housing, Majid bin Abdullah Al-Hogail, and His Excellency the Minister of Finance, Mohammed bin Abdullah Al-Jadaan.

The agreement focuses on expanding the Kingdom’s financial market by enhancing liquidity in the real estate finance sector. A key initiative under this partnership is the introduction of residential mortgage-backed securities—a pioneering asset class in the region. These securities aim to attract a broad range of local and international investors, bolstering the secondary mortgage market and creating new investment opportunities.

Hassana’s role as a leading institutional investor highlights the potential to align efforts for sustainable economic growth. By investing in mortgage-backed securities issued by SRC, Hassana contributes to the long-term stability and sustainability of Saudi Arabia’s real estate financing ecosystem.

Majeed Al Abduljabbar, CEO of SRC, commented, “Our partnership with Hassana marks a significant milestone in supporting the evolution of the housing finance landscape and fostering the development of Saudi Arabia’s capital markets. Together, we aim to introduce innovative financial solutions that deliver value to both investors and citizens while aligning with Vision 2030’s objectives.”

Saad Al Fadhli, CEO of Hassana, added, “This collaboration establishes a new standard for partnerships, enabling the development of scalable financial solutions that contribute to the Kingdom’s economic development goals. It aligns with Hassana’s strategy of diversifying its investment portfolios through long-term partnerships with entities like SRC.”

The Saudi Real Estate Refinance Company, established in 2017 by the Public Investment Fund, is licensed by the Saudi Central Bank to operate in real estate refinancing. SRC plays a pivotal role in achieving the goals of the Housing Program under Vision 2030, which seeks to increase homeownership rates among Saudi citizens by providing liquidity to financiers, enabling them to offer affordable housing solutions, and working with partners to strengthen the Kingdom’s housing ecosystem.

Hassana remains committed to delivering sustainable financial returns that drive long-term economic growth. Through strategic investments across diverse sectors, it emphasizes its mission to secure a prosperous financial future for future generations in Saudi Arabia.