Saudi Arabia has moved further into the real estate finance realm with its first residential mortgage-backed securities (RMBS) offering.
The Saudi Real Estate Refinance Company (SRC), a Public Investment Fund company, coordinated the offering. In a press statement, the SRC said the transaction “was executed under stringent regulatory frameworks and transparent controls, underscoring the maturity of the Kingdom’s investment environment, reinforcing investor confidence in the local capital markets, and supporting the long-term stability of the financial sector.”
The financial details on the transaction were not disclosed. Saudi Arabia is also the first Gulf nation to embark in an RMBS offering.
“The launch of the Kingdom’s first RMBS transaction marks a strategic step toward developing Saudi Arabia’s real estate finance market and enhancing its appeal to both domestic and foreign investors,” said Majid bin Abdullah Al-Hogail, minister of municipalities and housing and chairman of the board of SRC. “This initiative provides innovative financing instruments that align with the objectives of Saudi Vision 2030 to raise homeownership rates and enable more Saudi families to own suitable homes, advancing sustainable economic growth and quality of life.”
