Press Release

New York, United States: Saudi Real Estate Refinance Company (SRC), a PIF Company, signed a memorandum of understanding today, Thursday, in New York City with the global asset manager BlackRock. The agreement aims to develop the real estate finance market in the Kingdom and increase institutional participation in capital markets within the real estate sector. The signing was conducted under the patronage of His Excellency Majed bin Abdullah Al-Hogail, Minister of Municipalities and Housing and Chairman of the SRC Board of Directors.

During His Excellency the Minister of Municipalities and Housing's official visit to the United States, a ministerial delegation signed the MoU to explore ways to strengthen Saudi-American partnerships in the sectors of urban development, construction, building, finance, and real estate development. Majeed Fahd Al-Abdul Jabbar, CEO of the Saudi Real Estate Refinance Company, and Yazeed Al-Mubarak, Managing Director, BlackRock in the Middle East and CEO of BlackRock Saudi Arabia, signed the agreement in BlackRock President Robert Kapito's presence.

The memorandum aims to accelerate the development of real estate refinancing market programs in the Kingdom of Saudi Arabia and expand through both local and international capital market channels. It also seeks to diversify funding sources through fixed income markets, which will enhance the stability of the real estate finance market and contribute to achieving the goals of the housing and financial sector development programs, key enablers of the Kingdom’s Vision 2030.

SRC’s CEO Majeed Al-Abduljabbar commented on this: "The new agreement with BlackRock is part of the company's ongoing efforts to expand the participation of both local and international investors in the real estate refinancing market in the Kingdom by working with regulators to establish scalable, well-regulated frameworks and create attractive investment opportunities in securities related to real estate refinancing."

He added: “We also aim to attract international institutional investors to develop a broad base of investors in this sector, aligning the growth of the home finance market with the Kingdom's broader economic transformation goals, promoting economic diversification, and achieving the goals of the Kingdom's Vision 2030.”

Managing Director, BlackRock Middle East and CEO BlackRock Saudi Arabia Yazeed Almubarak said: “BlackRock is honored to partner with SRC and help evolve the development of Saudi Arabia’s housing-related capital markets. SRC is pioneering the development of mortgage refinancing solutions for Saudi banks and home finance companies. We look forward to partnering with SRC to advance mortgage securitization and other capital markets solutions. SRC and BlackRock share the objective of enabling and unlocking institutional capital in this growing fixed income asset class that further develops the asset management industry in KSA in line with the goals Vision 2030, the Financial Sector Development Program and the Housing Program.”

“BlackRock was founded as a mortgage focused fixed income manager with a focus on innovation and client solutions. Our business in KSA is driven with the same entrepreneurial approach and dedication, so we are honored to be playing a part in this important Vision 2030 initiative and continuing to be a strategic partner to expand the capital markets. This year, we launched the BlackRock Riyadh Investment Management (BRIM), which encompasses investment strategies across a range of asset classes for the Middle East market, including both public and private markets, managed by a Riyadh-based investment team, with the aim to further develop the Kingdom’s capital markets.”

It is noteworthy that the Saudi Real Estate Refinance Company (SRC) was established in 2017 by the Public Investment Fund as part of government initiatives aimed at achieving the housing program targets under the Kingdom’s Vision 2030. The company serves as a fundamental pillar in supporting the housing system by injecting liquidity into the residential real estate finance market, ensuring its continuity and stability. SRC has also obtained a license from the Saudi Central Bank to operate in the field of real estate refinancing.

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