Saudi Real Estate Refinance, BSF Complete Third Mortgage Deal

Saudi Real Estate Refinance Co signs its third residential mortgage portfolio deal with Banque Saudi Fransi, aiming to strengthen market liquidity, expand housing finance and support Saudi Arabia’s Vision 2030 goals.

The Saudi Real Estate Refinance Co (SRC), a Public Investment Fund (PIF) company, signs an agreement to acquire a residential mortgage portfolio from Banque Saudi Fransi (BSF), marking the third mortgage portfolio transaction between the two institutions. The agreement forms part of ongoing efforts to strengthen the efficiency, liquidity and sustainability of Saudi Arabia’s residential mortgage market.

The agreement is signed under the patronage of Majid bin Abdullah Al-Hogail, Minister of Municipalities and Housing and Chairman of SRC. Mazin bin Abdulrazzaq Al-Romaih, Chairman of Banque Saudi Fransi, also attends the signing ceremony.

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The transaction builds on the established partnership between SRC and BSF in the residential mortgage sector. By acquiring mortgage assets, SRC provides liquidity to financing institutions, enabling them to expand their capacity to offer housing finance solutions to customers.

The partnership also contributes to the development of Saudi Arabia’s secondary mortgage market, where mortgage assets can be refinanced and recycled to create additional lending capacity. This mechanism supports the availability of residential financing while improving the overall efficiency and sustainability of the housing finance ecosystem.

Majeed bin Fahd Al-Abduljabbar, CEO of SRC, says the agreement reflects the strength of the strategic relationship between the two organisations. He adds that continued cooperation with financing institutions helps expand residential mortgage financing and supports the development of refinancing solutions that contribute to a more efficient and sustainable market.

Badr bin Hamad Al-Salloom, CEO of Banque Saudi Fransi, says the agreement extends the bank’s strategic partnership with SRC and supports efforts to provide customers with broader financing solutions.

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SRC, established by PIF in 2017, is licensed by the Saudi Central Bank to conduct real estate refinancing activities. The company provides liquidity to banks and financing companies rather than directly offering mortgages to homebuyers. Its role supports the development of Saudi Arabia’s secondary mortgage market and broader housing-finance ecosystem.

The latest agreement aligns with the objectives of the Kingdom’s Housing Program and Saudi Vision 2030, particularly efforts to strengthen housing finance, increase homeownership and build a more resilient residential mortgage market.