Saudi Real Estate Refinance Company

The Saudi Real Estate Refinance Company (SRC) is a leading government-owned company in the housing sector, owned by the Public Investment Fund (PIF) in the Kingdom of Saudi Arabia. It is licensed by the Saudi Arabian Monetary Authority (SAMA) to engage in real estate refinancing activities. SRC's headquarters are in Riyadh, and the Minister of Municipal and Rural Affairs and Housing chairs its Board of Directors.

The company was established in 2017, when the Public Investment Fund announced its establishment to enhance the performance of the real estate sector and contribute more significantly to the gross domestic product, in line with Saudi Vision 2030.

Since its establishment, the company has aimed to support the stability and growth of the secondary mortgage market, provide and increase liquidity, and facilitate access to local and international sources of financing.

The company works on real estate refinancing through the secondary market to assist in the transformation of the local housing market, thereby ensuring stability in the real estate finance market by providing liquidity to financial service providers in the Kingdom and facilitating access to sustainable financing solutions for those interested in owning homes in the Kingdom.

The company facilitates the direct and indirect empowerment of individuals and aspiring entities in real estate financing through the increase and diversification of long-term real estate financing options with fixed rates (LTFR), in addition to providing support to real estate financiers by ensuring liquidity and alleviating capital burden to stimulate growth in the real estate financing sector and increase homeownership rates for Saudi citizens.

The Saudi Real Estate Refinance Company offers a diverse range of products, including providing financing in various forms and purchasing assets at different levels. Each product includes one or more solutions to meet the specific needs of each financier.

The Saudi Real Estate Refinance Company has introduced four solutions for all real estate funders in the Kingdom; the first solution includes short-term and long-term financing, according to the partner's preference. The second solution is long-term structured deposits to provide liquidity for partners among real estate financiers with licenses to accept deposits. The funds are invested in long-term Sharia-compliant deposits with one of the Saudi banks or financial institutions. The third solution is conditional portfolio purchasing, where the Saudi Real Estate Refinance Company purchases housing finance portfolios from partners based on the right of recourse to the financier. This is done to link credit risks to the financier in case of default on any of the housing financings that are being purchased. Finally, the fourth solution is unconditional portfolio purchasing, where the Saudi Real Estate Refinance Company purchases housing finance portfolios from partners without the right of recourse. The seller is not liable for any consequences resulting from the default of the contracted portfolios.

On May 11, 2023, the company obtained an A2 rating from the international rating agency Moody's, and also received a A rating from Fitch Ratings with a stable outlook. These ratings reflect the quality of the company's portfolio and its solid capital base. These ratings follow the Kingdom's recent credit rating upgrades, reflecting the positive momentum resulting from necessary reforms driving the Kingdom's economic growth.