Saudi Real Estate Refinance Company of the Public Investment Fund has announced the signing of a refinancing partnership agreement with the Real Estate Development Fund (REDF) to refinance a real estate portfolio worth SAR 10 billion.
The agreement aims to increase the liquidity in the home financing market in the Kingdom, reduce the cost of home financing for Saudi families and support the objectives of the housing program under Vision 2030 to raise home ownership rates by 70% by the year 2030. The agreement also supports REDF in enhancing its financial stability.
The agreement was signed in the presence of His Excellency Majed Al Hogail, Minister of Municipal and Rural Affairs and Housing and Chairman of the (REDF), and His Excellency Mohammed bin Mazyad Al-Tuwaijri, Deputy Chairman of the National Development Fund (NDF). The agreement was signed by Mansour bin Madi, CEO of REDF and Fabrice Susini, CEO of SRC.
Fabrice Susini, CEO of SRC, wholly owned by the Public Investment Fund (PIF), commented: “The agreement aims to increase the supply of home loans for affordable housing that aligns with our vision to develop a robust secondary home financing market for the benefit of the primary housing market in the Kingdom. Therefore, the agreement with REDF positions us as a catalyst in achieving the housing goals stipulated by Vision 2030. This is our largest agreement worth SAR 10 billion with a home financing originator and with this, we are unlocking opportunities for the growth of home financing market in the Kingdom by creating low-risk tools in partnership with financial institutions.”
Mansour bin Madi, CEO of REDF, stated: “The agreement aligns with our strategy to achieve the objectives of providing various financing and housing options to the citizens in the home financing market. The agreement also fulfills the needs and requirements of families benefiting from Saudi Arabia’s “Sakani” housing program under the Mado’om mortgage program to achieve the objectives of the housing program and raise the percentage of home ownership of families to 70% by 2030.