Press Release

This is the third such transaction between SRC and GOSI, building upon a series of transactions totalling more than SAR 5 billion in value. The agreement demonstrates a strong strategic relationship in which both entities are aligned in boosting liquidity for the Saudi home financing market to facilitate home ownership for Saudi families under the Masakin Programme, which GOSI launched in 2007. The agreement is in line with the objectives of the housing programme under Vision 2030 to raise home ownership rates by 70% by the year 2030.

The partnership is a testament to GOSI’s commitment to work with the private sector to boost its offerings for beneficiaries across the Kingdom. The agreement represents an important part of the Masakin Programme, a GOSI sponsored initiative in which Dar Al Tamleek provides fixed-rate Murabaha home financing solutions to government and private sector employees, and pensioners to encourage homeownership in the Kingdom.

His Excellency Mohammed Al Nahhas, Governor of PPA said, “At GOSI, we are proud to be an integral part of the housing ecosystem in the Kingdom. Our crucial role has enabled us to partner with SRC once again, where we create synergies to realise the Vision 2030 housing programme objectives. This agreement will help us realise these objectives and facilitate affordable housing in the Kingdom.”

Fabrice Susini, CEO of SRC said: “This transaction demonstrates that SRC’s refinancing model for the Saudi housing market works, and we will continue to collaborate with strategic partners to provide greater liquidity and risk management solutions in this market. The partnership with GOSI further accelerates our purpose of achieving greater homeownership in the Kingdom. Our work with organisations such as GOSI makes home financing even more accessible and affordable to citizens whilst providing additional dynamism to the Kingdom’s robust home financing.”

Ghassan Al Amoudi, CEO of Dar Al Tamleek said: “This agreement, the third of its kind, emphasises our astute management of the Masakin Programme over the past decade. It leaves no doubt that the Masakin programme is one of the most successful and innovative real estate financing programmes in the Kingdom. We endeavour to facilitate homeownership for Saudi families and look forward to the continuous development of our partnership with GOSI and SRC.”

SRC provides liquidity to originators by buying home financing portfolios from local banks and real estate financing companies, as well as aggregating and packaging the portfolios into Shariah compliant mortgage-backed securities for sale to domestic and international investors. SRCs’ expanding frequency of refinancing transactions are reflective of a paradigm shift in real estate financing from ‘originate to hold’ to ‘originate to sell’. This benefits all stakeholders in the housing ecosystem who stand to gain from additional liquidity, risk management, and lowered financing rates for Saudi families.