Saudi Real Estate Refinance Company and 'Damanat' Sign a Memorandum of Understanding to Guarantee Residential Mortgage Portfolios

The Saudi Real Estate Refinance Company (SRC), a PIF company, has signed on Sunday 6 October 2024, a Memorandum of Understanding (MoU) with the Saudi Mortgage Guarantees Services Company, "Damanat" which aims to guarantee the residential mortgage portfolios owned by SRC and the portfolios being acquired, thereby helping to reduce financing costs for target segments and increasing the number of beneficiaries. The MoU signing took place under the patronage of His Excellency Mr. Majed bin Abdullah Al-Hogail, Minister of Municipal Rural Affairs and Housing and Chairman of the Board of SRC. 

The agreement was signed by Mr. Majeed Fahad Al-Abduljabbar, CEO of SRC, and Mr. Hossam Radwan, CEO of Damanat. This partnership is a fundamental pillar for expanding financing coverage to achieve a more inclusive real estate financing market in terms of beneficiaries.

The  MoU also contributes to raising the attractiveness of the real estate finance market by developing the secondary market for real estate financing aimed at supporting its growth and stability, and attracting more local and international investors by enhancing the creditworthiness of the real estate financing portfolios owned by SRC, as the company is currently working  with its partners to continue developing a secondary market that supports the real estate finance sector in the Kingdom. 

Mr. Majeed Fahad Al-Abduljabbar, CEO of SRC, said:  "This agreement reflects our commitment to contribute to achieving the goals of Vision 2030 by strengthening the real estate finance market, increasing the rate of homeownership among citizens, and attracting more local and international investors.”  

Mr. Hussam Radwan, CEO of Damanat said, "This agreement is part of our efforts to provide integrated financing solutions that enable a broader segment of society to access affordable real estate financing, thereby enhancing citizens' opportunities to own their homes and contributing to the development of the real estate sector in the Kingdom

It is noteworthy that SRC was established in 2017 by the Public Investment Fund as part of government initiatives aimed at achieving the housing program targets under the Kingdom’s Vision 2030. The company serves as a fundamental pillar in supporting the housing ecosystem by injecting liquidity into the residential real estate finance market, to ensure its continuity and stability. SRC has also obtained a license from the Saudi Central Bank in 2017 to operate in the field of real estate refinancing.

Saudi Mortgage Guarantees Services Company

 (Damanat), fully owned by the Real Estate Development Fund, aims to streamline the beneficiary journey by providing innovative solutions and simplified procedures, contributing to the sustainable development of the real estate finance sector.