5 Sept 2021
Saudi’s SRC and Social Insurance Agency Reach Deal Worth $533 Million
The Index Today
The Saudi Real Estate Refinance Company RFC announced on Saturday that it has finalized a refinancing deal with the nation’s largest social insurance agency worth 2 billion riyals. SRC is to be considered as the equivalent of US finance business Fannie Mae.
According to the newly reached deal, the housing portfolio, Masakin, will be refinanced. This portfolio is supported by the General Organization for Social Insurance (GOSI). Masakin has been designed to give fixed-rate murabaha home financing for private sector employees as well as state employees and pensioners. The program is currently managed by Dar Al Tamleek, a home financing company.
SRC’s Chief Executive Fabrice Susini said, “The partnership with GOSI further accelerates our purpose of achieving greater home ownership in the Kingdom. Our work with organizations such as GOSI makes home financing even more accessible and affordable to citizens whilst providing additional dynamism to the Kingdoms robust home financing.”
The Saudi Real Estate Refinance Company RFC is a subsidiary of Saudi Arabia’s sovereign wealth fund called the Public Investment Fund (PIF). This fund bought a mortgage portfolio which has a market worth of over 3 billion riyals.
Crown Prince Mohammed bin Salman is promoting home ownership to 70% with the help of its Vision 2030 reform program. According to research, approximately 62% of Saudi’s own homes now, exceeding the 60% target set by the government for2020.