The Saudi Real Estate Refinance Company (SRC), a subsidiary of the Public Investment Fund, has entered into an agreement with BlackRock to enhance the real estate finance market in Saudi Arabia. This collaboration, signed in New York City, seeks to bolster institutional involvement in the country’s capital markets within the real estate sector. The signing occurred during an official visit by His Excellency Majed bin Abdullah Al-Hogail, Minister of Municipalities and Housing.
The memorandum aims to develop the real estate refinancing market in Saudi Arabia by leveraging both local and international capital markets. It focuses on diversifying funding sources through fixed income markets, thereby enhancing market stability and supporting the goals of Vision 2030’s Housing and Financial Sector Development Programs.
Majeed Fahd Al-Abdul Jabbar, CEO of SRC, emphasized the importance of expanding local and international investor participation in the market. The agreement with BlackRock is seen as a step towards creating scalable frameworks and attractive investment opportunities in real estate refinancing securities.
Yazeed Al-Mubarak, Managing Director of BlackRock Middle East, expressed BlackRock’s commitment to partnering with SRC to advance Saudi Arabia’s housing-related capital markets. He noted BlackRock’s history as a mortgage-focused fixed income manager and highlighted the launch of BlackRock Riyadh Investment Management (BRIM) as part of their strategic initiatives in Saudi Arabia.
SRC, established in 2017 by the Public Investment Fund, plays a crucial role in supporting Saudi Arabia’s housing system by providing liquidity to the residential real estate finance market. Licensed by the Saudi Central Bank, SRC continues to be a key player in achieving Vision 2030’s housing objectives.