The Saudi Real Estate Refinance Company (SRC), a PIF-owned company, signed yesterday a memorandum of understanding (MoU) with the Saudi Mortgage Guarantees Services Company (Damanat) to guarantee residential mortgage portfolios owned by SRC and those being acquired.
According to a press release from the Ministry of Municipalities and Housing, this move aims to cut financing costs for target segments and boost the number of beneficiaries.
SRC CEO Majeed Al-Abduljabbar and Damanat CEO Hossam Radwan co-signed the MoU under the patronage of the Minister of Municipalities and Housing and Chairman of the Board of SRC Majid Al-Hogail.
This partnership is an important step toward broadening financing access, to create a more inclusive real estate financing market for beneficiaries.
As per the release, the agreement increases the appeal of the real estate finance market by developing a secondary real estate finance market. This supports market growth and stability, while attracting more local and international inv
estors through improved creditworthiness of the real estate financing portfolios owned by SRC.
The company is currently collaborating with partners to further advance a secondary market that bolsters the real estate finance sector in the Kingdom.
Commenting on the partnership, Al-Abduljabbar said: “This agreement reflects our commitment to contribute to achieving the goals of Vision 2030 by strengthening the real estate finance market, increasing the rate of homeownership among citizens, and attracting more local and international investors.”
Radwan said that the agreement is part of the company’s efforts to make homeownership more accessible by offering affordable financing solutions.
SRC, established in 2017 by PIF as part of government initiatives aligned with those of Vision 2030, plays a crucial role in supporting the housing sector. The company injects liquidity into the residential real estate finance market to ensure its continuity and stability.
In 2017, SRC secured a license from the Saudi Cent
ral Bank to operate in real estate refinancing.
“Damanat, fully owned by the Real Estate Development Fund, aims to streamline the beneficiary journey by providing innovative solutions and simplified procedures, contributing to the sustainable development of the real estate finance sector,” read the release.
Source: Saudi Press Agency
