SRC launches Saudi Arabia’s first residential mortgage-backed securities

SRC Launches Saudi Arabia’s First Residential Mortgage-Backed Securities

The Saudi Real Estate Refinance Company (SRC), a subsidiary of the Public Investment Fund (PIF), has launched the Kingdom’s first residential mortgage-backed securities (RMBS). This milestone aims to:

Increase liquidity in the real estate sector.
Diversify the investment instruments available to investors.

Objectives and Context

Majid Al-Hogail, Minister of Municipalities and Housing, stated that the initiative supports Vision 2030 goals by helping more Saudi families access home ownership and strengthening investor confidence through sophisticated financial instruments under a robust regulatory framework.
The issuance was conducted under strict regulatory guidelines, reflecting the maturity of Saudi Arabia’s investment environment.

Financial Impact

The launch aligns with SRC’s mandate to develop the capital markets and support financial sector diversification while expanding housing access.
Earlier in 2025, SRC conducted an international sukuk issuance worth $2 billion as part of a $5 billion trust certificate program, aimed at improving liquidity and financing sources for housing.

Conclusion

This initiative represents a significant advancement for Saudi Arabia’s secondary mortgage market, while boosting investor confidence in the Kingdom’s ability to adopt advanced financial instruments and strengthen the real estate finance sector.