PIF-Backed SRC Launches Saudi Arabia’s First Residential Mortgage-Backed Securities
The Saudi Real Estate Refinance Company (SRC) announced on Monday that it has launched the kingdom’s first Residential Mortgage-Backed Securities (RMBS) deal. This step is meant to strengthen the real estate finance market in Saudi Arabia.
About RMBS
SRC explained that the transaction will help grow the capital market and increase liquidity in real estate financing. RMBS turns groups of home loans into tradable securities, creating a new investment option for local and foreign investors.
According to SRC, securitization offers investors attractive opportunities in high-quality assets with medium-term returns.
Majid bin Abdullah Al-Hogail, Minister of Municipalities and Housing and Chairman of SRC, said this initiative introduces new financial tools that support Saudi Vision 2030 goals—especially raising homeownership rates and helping more Saudi families buy homes. He also noted that it is a major step toward making Saudi Arabia’s real estate finance market more appealing to both domestic and international investors.
The transaction was carried out in partnership with the Saudi Central Bank, the Capital Market Authority, the Financial Sector Development Program, the Housing Program, and the Public Investment Fund (PIF).
Recent agreements
In August, SRC signed a deal with Arab National Bank to buy a real estate finance portfolio, boosting liquidity for lenders and supporting homeownership. Around the same time, SRC also reached a similar agreement with Bank Albilad to purchase another portfolio, strengthening their cooperation for the coming year.
Background on SRC
SRC, a company owned by the Public Investment Fund, was founded in 2017 and operates under the Saudi Central Bank’s license. Its main role is to develop the real estate finance market and help increase Saudi homeownership by providing liquidity to banks and other lenders.
Published: 26th August 2025
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