SRC and SNB Sign SAR 3.4 Billion Mortgage Portfolio Acquisition Agreement

Real Estate

SRC and SNB Sign SAR 3.4 Billion Mortgage Portfolio Acquisition Agreement

Landmark Deal Strengthens Market Liquidity and Advances Saudi Arabia’s Secondary Mortgage Market

The Saudi Real Estate Refinance Company (SRC), a Public Investment Fund (PIF) company, has signed a SAR 3.4 billion mortgage portfolio acquisition agreement with the Saudi National Bank (SNB), Saudi Arabia’s largest financial institution. This deal represents one of the most significant mortgage refinancing transactions in the Kingdom, reinforcing efforts to enhance market liquidity and support long-term financial stability in the housing sector.

The agreement was signed by Tareq Al-Sadhan, CEO of SNB, and Majeed Al-Abduljabbar, CEO of SRC, highlighting their shared commitment to expanding homeownership opportunities for Saudi citizens. Through this transaction, SRC aims to refinance the mortgage portfolio, injecting long-term liquidity into the Kingdom’s residential mortgage market.

Tareq Al-Sadhan, CEO of SNB, stated: “As the Kingdom’s leading provider of mortgage financing, SNB remains dedicated to supporting homeownership, enhancing market liquidity, and delivering competitive housing finance solutions. This agreement underscores our commitment to empowering Saudi families with accessible and affordable home financing, aligning with Saudi Vision 2030’s goal of increasing homeownership rates to 70%.”

Al-Sadhan further emphasized that the partnership strengthens SNB’s position in Saudi Arabia’s secondary mortgage market and reinforces its role in SRC’s Originate-To-Distribute (OTD) model. This collaboration enhances financial stability in the housing sector and marks a milestone in advancing long-term sustainable securitization efforts.

Majeed Al-Abduljabbar, CEO of SRC, commented: “This strategic agreement with SNB reflects our joint vision of establishing a resilient and liquid housing finance ecosystem in Saudi Arabia. By providing liquidity and developing a robust securitization framework, we are laying the foundation for a sustainable mortgage market that supports Saudi citizens in achieving homeownership.”

This transaction is part of SRC’s ongoing mortgage portfolio acquisitions, reaffirming its role as a key liquidity provider in the secondary mortgage market. The agreement strengthens SRC’s collaboration with SNB, positioning both entities as leaders in financial innovation and economic growth. Additionally, the deal paves the way for the development of Residential Mortgage-Backed Securities (RMBS), further enhancing market activity and attracting local and international investors.

By securitizing acquired mortgage portfolios, SRC is driving the evolution of Saudi Arabia’s secondary mortgage market, ensuring long-term financial stability and reinforcing the Kingdom’s position as a regional leader in housing finance.