Developing the housing finance market in Saudi Arabia


ADRIK

Why SRC?

Established in 2017 by the Public Investment Fund (PIF) as part of Saudi Arabia’s Vision 2030 housing programme, the Saudi Real Estate Refinance Company (SRC) aims to raise the rate of homeownership among Saudi nationals. We are achieving this by providing liquidity solutions to primary originators or financiers at the lowest possible profit rates that enable them to provide Saudi citizens affordable home financing. We work collabaratively with the Ministry of Municipal and Rural Affairs and Housing, Banks, Real estate refinancing companies and other members of the housing ecosystem to collectively solve problems that hinder homeownership in the Kingdom.

SRC enables originators to offer long and short-term home financing solutions to home buyers through refinancing loan portfolios.

SRC raises capital from investors to provide continuous liquidity to the originator, allowing them to provide home financing solutions to Saudi citizens at favourable rates.

SRC is an integral part of the Saudi housing ecosystem that works with vital organizations such as the Ministry of Municipal and Rural Affairs and Housing towards the goal of increasing homeownership in the Kingdom as part of the Vision 2030 programme.

SRC serves a dual function. First, it ensures that there are accessible sources of funding available for Saudi banks and real estate finance companies. Second, SRC makes this possible through either issuing sukuk or aggregating loan portfolios and packaging them into Mortgage-Backed Securities. SRC aligns the liquidity, capital and risk management requirements of mortgage providers with the risk acceptability and return on equity to meet investor targets.

Through our partner banks and Real Estate Finance Companies, we provide affordable mortgages to Saudi citizens at the most suitable rates for their individual needs.

We also offer educational tools and resources to help throughout the homebuying process, so buyers can make informed decisions when purchasing a house.

We partner with originators to provide affordable mortgages in the Kingdom.

We support our partners with liquidity and risk management solutions and aim to collectively develop a robust and affordable housing ecosystem in the Kingdom.

We act as an intermediary between the primary and secondary housing market in the Kingdom.

Our goal is to provide investors with an opportunity to be part of the growing housing market in the Kingdom by providing innovative Shariah-compliant solutions.