SRC and Hassana Investment Company Sign MoU to Develop the Securitization Markets in the Kingdom

The Saudi Real Estate Refinance Company (SRC), a PIF company, has signed a Memorandum of Understanding (MoU) with Hassana Investment Company (Hassana), the investment arm company of the General Organization for Social Insurance, aiming to achieve the goals of the Kingdom of Saudi Arabia's Housing Program and Financial Sector Development Program, aligning with the objectives of Saudi Vision 2030. The event was attended by His Excellency the Minister of Municipalities and Housing, Majid bin Abdullah Al-Hogail, and His Excellency the Minister of Finance, Mr. Mohammed bin Abdullah Al-Jadaan.

The memorandum of understanding aims to deepen and expand the financial market in the Kingdom, enhancing liquidity in the real estate finance sector by introducing an innovative asset class—the first of its kind in the region—through the issuance of residential mortgage-backed securities. These issuances are expected to attract a diverse base of local and global investors in the secondary mortgage market and broaden investment opportunities in the sector.

Hassana’s participation as a leading institutional investor underscores the potential for the investors to align efforts in creating sustainable economic investment opportunities. This stems from its pivotal role as a key investor in mortgage-backed securities issued by SRC, contributing to the sustainability of the real estate financing ecosystem.

Majeed Al Abduljabbar, CEO of SRC, stated: “Our partnership with Hassana marks a significant milestone in supporting the evolution of the housing finance landscape and fostering the development of Saudi Arabia’s capital markets. Together, we aim to introduce innovative financial solutions that deliver value to both investors and citizens while aligning with Vision 2030’s objectives.”

Saad Al Fadhli, CEO of Hassana, added: “This collaboration establishes a new standard for partnerships, enabling the development of scalable financial solutions that contribute to the Kingdom’s economic development goals. It aligns with Hassana’s strategy of diversifying its investment portfolios through long-term partnerships with entities like SRC.”

It is noteworthy that the Saudi Real Estate Refinance Company was established by the Public Investment Fund in 2017 with the aim of developing the Kingdom's real estate finance market. Licensed by the Saudi Central Bank to operate in the field of real estate refinancing, SRC plays a pivotal role in achieving the objectives of the Housing Program under Saudi Vision 2030, which seeks to increase homeownership rates among Saudi citizens. This is accomplished by providing liquidity to financiers, enabling them to offer affordable housing finance to individuals, and working closely with partners to support the Kingdom's housing ecosystem.

Hassana is firmly committed to delivering sustainable financial returns that drive long-term economic growth. Through strategic investments across a wide range of sectors, it underscores its dedication to securing a prosperous financial future for Saudi generations.