The Saudi Real Estate Refinance Company (SRC), a Public Investment Fund (PIF) Company, signed a memorandum of understanding (MoU) in New York City on August 23, with King Street Capital Management, to foster cooperation and strategic partnership between the two parties in the real estate finance sector.

The MoU signed by Majeed Fahd Al-Abdul Jabbar, CEO of the SRC, and Brian J Higgins, Managing Partner of King Street, was part of a visit of the Minister of Municipalities and Housing, and Chairman of SRC, Majed bin Abdullah Al-Hogail, to the United States.

The visit hopes to explore ways to enhance partnership and cooperation between the two countries in the sectors of urban development, construction, building, finance, and real estate development.

The memorandum aims to diversify liquidity sources to support the secondary real estate finance market's stability, foster economic growth, and attract more foreign investments to the Saudi market, which in turn contributes to achieving the housing programme targets outlined in the Kingdom’s Vision 2030.

The memorandum also lays emphasis on the development of innovative financial instruments, such as the securitisation of Sharia-compliant residential real estate finance portfolios.

Saudi Real Estate Refinance Company said it is working to adapt these instruments to meet the standards of specialised global investors.

The CEO of the Saudi Real Estate Refinance Company, Majeed Al-Abdul Jabbar, confirmed that the signing of the MoU with King Street is part of our efforts to play a key supporting role in the housing system and the Financial Sector Development Programme by providing the necessary liquidity in the real estate finance market, diversifying financing options for the private sector, and creating a new asset class for investors.

These efforts contribute to achieving the housing programme’s goal of increasing the homeownership rate among Saudi citizens to 70% by 2030.

Additionally, the agreement supports the growth and stability of the Saudi market while attracting both local and international investors.

Higgins said that this initiative will contribute to developing local capital markets and creating a suitable structure to attract international investors who seek to enhance their portfolios with high-quality Saudi securities.

He also highlighted that the programme will benefit homeowners and the banking system, aligning with the goals of the Kingdom’s Vision 2030. 

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