The Saudi Real Estate Refinance Company (SRC), a PIF company, has inked a Memorandum of Understanding (MoU) with the Saudi Mortgage Guarantees Services Company, ‘Damanat’.

The partnership aims to guarantee the residential mortgage portfolios owned by SRC as well as the portfolios being acquired, thereby helping to reduce financing barriers and boosting the number of beneficiaries.

The signing of MoU took place under the patronage of His Excellency Mr. Majed bin Abdullah Al-Hogail, Minister of Municipal Rural Affairs and Housing and Chairman of the Board of SRC.

The MoU was signed by Mr. Majeed Fahad Al-Abduljabbar, CEO of SRC, and Mr. Hossam Radwan, CEO of Damanat. This partnership will play a crucial role in expanding financing coverage to achieve a more inclusive real estate financing market in terms of beneficiaries.

The MoU also aims to enhance the attractiveness of the real estate finance market by developing the secondary market for real estate financing to foster its growth and stability, and attract more local and international investors by enhancing the creditworthiness of the real estate financing portfolios owned by SRC, as the company is currently working with its partners to continue developing a secondary market, supporting the Kingdom’s real estate finance sector.

Mr. Majeed Fahad Al-Abduljabbar, CEO of SRC, commented that, “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.”

SRC, founded in 2017 by the Public Investment Fund, contributes to the objectives of the housing program under Saudi Vision 2030. The company plays a pivotal role in fostering the housing ecosystem by injecting liquidity into the residential real estate finance market, ensuring its continuity and stability.

SRC has also obtained a license from the Saudi Central Bank in 2017 to operate in the field of real estate refinancing. Saudi Mortgage Guarantees Services Company (Damanat), fully owned by the Real Estate Development Fund, aims to streamline the beneficiary journey by offering innovative solutions and simplified procedures, contributing to the sustainable development of the real estate finance sector.

source : GCC Business News