Citizens will have easier access to home loans as the Saudi Real Estate Refinance Co. extends its refinancing agreement with Arab National Bank (ANB), adding SR500 million ($133 million).

This is the second deal of its kind between the Public Investment Fund-owned SRC and ANB, according to a statement.

This move signifies SRC’s ongoing efforts to support the Kingdom’s home financing market by expanding mortgage refinancing and offering funding solutions to real estate entities to drive growth.

“The purchase agreement for the investment portfolio worth SR500 million came to continue the company’s efforts with its partners to enhance financial sustainability in the real estate financing market in order to achieve the objectives of the Housing Program within Saudi Vision 2030,” Saudi Minister of Municipal and Rural Affairs and Housing Majid Al-Hogail said in a post on X.

He added that the deal aims “to enable financing agencies to provide appropriate solutions to citizens in their homeownership journey.”

The deal also underscores both parties’ commitment to supporting sector development by providing convenient property financing options to Saudi citizens.

Moreover, SRC CEO Majeed Fahad Al-Abduljabbar said: “With our shared vision to support the Kingdom’s housing market and enable accessible home financing solutions for Saudi citizens, we are pleased to extend our partnership with ANB.”

He added: “Through this partnership, we will further increase market liquidity that will enable the origination of new home financing portfolios.”

The CEO highlighted that this extension is not just a continuation of the collaboration between both entities but also a vital step in SRC’s commitment to supporting the strategic objectives of Vision 2030’s Housing Program.

On the other hand, Obaid Al-Rasheed, CEO of ANB, stated, “ANB is honored to continue our strategic partnership with SRC, reinforcing our joint commitment to the Kingdom’s housing sector.”

He added: “This enhanced agreement is a testament to our dedication to supporting the national vision. By increasing the origination of new home financing portfolios, we are not only contributing to strengthening the Kingdom’s financial ecosystem but also the objectives of Vision 2030’s Housing Program.”

In January, SRC and Al-Rajhi Bank entered into an agreement to expand the pool of new housing options for the Kingdom’s residents, involving the purchase of a real estate financing portfolio valued at SR5.8 billion.

Since then, SRC has signed a series of refinancing deals with leading banks and mortgage finance companies in the Kingdom, aiming to broaden Saudi citizens’ access to home financing solutions.

Through these agreements, the company offers liquidity, capital management, and balance sheet de-risking solutions to enhance the financing capacity of home financiers and originators.

ARAB NEWS