Saudi Real Estate Refinancing, Deutsche Gulf Finance sign $2bn deal
Crown Prince-led PIF's unit has signed the facility to provide more liquidity in Saudi Arabia's home finance market
Saudi Real Estate Refinancing Company (SRC) – a subsidiary of the Crown Prince HRH Mohammed Bin Salman-led Public Investment Fund (PIF) – has signed a $2.25bn (SAR8.4bn) financing facility with Deutsche Gulf Finance to provide more liquidity in the housing sector and grow the kingdom’s mortgage market.
According to an Arabic-language statement on Saudi Arabia's state-held news agency, SPA, SRC said the partnership was important as it would help Riyadh-based Deutsche Gulf Finance’s plans to provide affordable home financing options to Saudi citizens.
The agreement was signed by Fabrice Susini, SRC’s chief executive officer, and Mohammed Al-Duwaish, chief executive officer of Deutsche Gulf.
Al Duwaish said the agreement reflected the continuous cooperation between the two companies to achieve the objective of the “kingdom’s Vision 2030 in raising the percentage of citizens’ right to adequate housing”.
According to SPA, SRC aims to refinance 20% of the mortgage market in Saudi Arabia, which is expected to grow to $133.3bn (SAR500bn) by 2020 and reach $213.3bn (SAR800bn) over the next 10 years.
SRC was established in 2017 by PIF with the purpose of developing the kingdom’s housing finance market.
While it does not provide home loans direct to buyers, it delivers funding to lenders – such as banks and finance companies – so as to allow them to offer more accessible housing finance in Saudi Arabia.