SRC Launches Saudi Arabia’s First Residential Mortgage-Backed Securities
The Saudi Real Estate Refinance Company (SRC), a subsidiary of the Public Investment Fund (PIF), has launched the Kingdom’s first residential mortgage-backed securities (RMBS). This milestone aims to:
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Increase liquidity in the real estate sector.
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Diversify the investment instruments available to investors.
Objectives and Context
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Majid Al-Hogail, Minister of Municipalities and Housing, stated that the initiative supports Vision 2030 goals by helping more Saudi families access home ownership and strengthening investor confidence through sophisticated financial instruments under a robust regulatory framework.
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The issuance was conducted under strict regulatory guidelines, reflecting the maturity of Saudi Arabia’s investment environment.
Financial Impact
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The launch aligns with SRC’s mandate to develop the capital markets and support financial sector diversification while expanding housing access.
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Earlier in 2025, SRC conducted an international sukuk issuance worth $2 billion as part of a $5 billion trust certificate program, aimed at improving liquidity and financing sources for housing.
Conclusion
This initiative represents a significant advancement for Saudi Arabia’s secondary mortgage market, while boosting investor confidence in the Kingdom’s ability to adopt advanced financial instruments and strengthen the real estate finance sector.
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