The Saudi Central Bank (SAMA) has granted the Saudi Real Estate Refinance Company (SRC) formal clearance to launch residential mortgage‑backed securities (RMBS) in the domestic market, according to a SAMA press release.
Under the arrangement, SRC will convert residential real estate financing portfolios into tradable securities. The aim is to establish a securitisation issuance framework, strengthen the domestic debt market, broaden the investor base and diversify funding sources.
The move is part of a broader strategy under Saudi Vision 2030 and aligns with SAMA’s role in maintaining stability in the financial sector through its regulatory and supervisory mandate.
SRC, which is backed by the country’s Public Investment Fund, previously signed a memorandum of understanding with Hassana Investment Company to help develop securitisation markets, including in RMBS.
Industry data show that mortgage lending in Saudi Arabia rose significantly in recent years, hitting nearly $175 billion by September 2024, up from around $53 billion in 2019, as demand for home financing surged. That trend has placed pressure on liquidity in the banking system.
By enabling RMBS issuance, the central bank and SRC intend to deepen liquidity in the housing finance system and attract both local and international investors into the real estate debt segment.
