SRC Introduces Saudi Arabia's First RMBS to Revolutionize Real Estate Financing

SRC Launches the First Residential Mortgage-Backed Securities (RMBS) in Saudi Arabia

On August 26, 2025, the Saudi Real Estate Refinance Company (SRC), part of the Public Investment Fund (PIF), made headlines with the introduction of the Kingdom's inaugural Residential Mortgage-Backed Securities (RMBS). This significant development marks a historic milestone aimed at transforming and bolstering the real estate finance landscape in Saudi Arabia.

The Essence of RMBS

At its core, RMBS allows for the securitization of residential real estate finance loans. This innovative approach to asset management opens new channels for investment in high-quality credit assets that come with medium-term maturities. By venturing into RMBS, SRC not only broadens the range of financial instruments available but also deepens the capital markets of the region, fostering liquidity and encouraging diverse investment opportunities.

The initiation of RMBS highlights the Kingdom's robust regulatory frameworks, which enforce stringent controls that enhance investor confidence in the local capital markets. This move is also a testament to the matured nature of Saudi Arabia’s investment climate, suggesting a strategic pivot towards attracting both domestic and foreign investors.

Supporting Saudi Vision 2030

His Excellency Majid bin Abdullah Al-Hogail, Minister of Municipalities and Housing and Chairman of SRC, emphasized the importance of this launch. He stated, "The launch of the Kingdom's first RMBS transaction marks a strategic step toward developing Saudi Arabia's real estate finance market and enhancing its appeal to both domestic and foreign investors."

This initiative aligns impeccably with the goals laid out in Saudi Vision 2030, which aims to increase homeownership rates and improve living standards for Saudi families. It serves as a stepping stone for advancing sustainable economic growth and ensuring a better quality of life for the citizens.

Insights from SRC's Leadership

SRC CEO Majeed bin Fahd Al-Abduljabbar remarked, "The launch of the first RMBS transaction represents a qualitative leap in the development of the Kingdom's secondary mortgage market. This achievement was made possible through close collaboration with strategic partners like the Saudi Central Bank, the Capital Market Authority, and other pivotal entities."

He further elaborated on the broad implications of this landmark transaction, mentioning how it will enhance liquidity within the real estate financing market. Additionally, it provides greater flexibility for financial institutions in risk management and capital allocation, crucial elements for market stability and growth.

Looking Forward

As SRC continues to chart its path as a key player in the development of the Saudi mortgage market, this RMBS initiative stands out as a vital component. It not only underscores the organization's pivotal role in reinforcing investor trust in the Kingdom's regulatory environment but also symbolizes Saudi Arabia's readiness to adopt advanced financial products that align with global standards.

Originally established in 2017, SRC operates under a license issued by the Saudi Central Bank (SAMA) and aims to solidify the real estate finance sector in alignment with the Housing Program, another crucial aspect of Saudi Vision 2030. By enhancing liquidity and providing affordable financing options, SRC is dedicated to empowering Saudi families towards homeownership.

In conclusion, the launch of RMBS represents not just a financial innovation but also a significant step towards reshaping the real estate financing landscape in Saudi Arabia, highlighting the Kingdom's ambition to foster a more diverse and inclusive financial environment.