Saudi Arabia launches first residential mortgage-backed securities

Saudi banks could offload as much as $48 billion in mortgages to the Saudi Real Estate Refinance Co. by 2030, as the kingdom launches its first residential mortgage-backed securities.

The SRC, which is wholly owned by the Public Investment Fund, recently executed its first RMBS transaction following regulatory approvals, Bloomberg reports.

The move is a step toward boosting liquidity and bank lending in the kingdom, which is seen as central to Saudi Arabia’s economic transformation agenda.

The SRC has also forged partnerships with global asset managers and domestic institutions to deepen the real estate financing market.

It comes as home ownership in the kingdom has risen to 65.4% of families, surpassing this year’s target, boosted by initiatives to support access to mortgages.