Saudi Real Estate Refinance assets may double as mortgage sector booms

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DUBAI: Saudi Real Estate Refinance assets are expected to double this year amid a mortgage boom in the Kingdom, Argaam reported.

The finance company held SR7 billion ($1.86 billion) in assets by the end of 2020, the financial news site said, citing Majeed Abduljabbar, global head of treasury and capital markets at SRC.

The fledgling Saudi mortgage market is a rare bright spot within the regional real estate market where prices remain broadly depressed.

The completion of a SR4 billion sukuk issuance was part of the company’s SR10 billion sukuk program in 2021, he noted.

It will help to boost real estate market liquidity and stability, Abduljabbar said.

The move will also help the cause of home ownership by reducing financing costs.

Mortgages reached SR136 billion in 2020 with 6,333 new contracts, he noted.

Abduljabbar expects the first quarter of the year to see further growth in mortgages for Saudi nationals.

The mortgage portfolios of Al Rajhi Bank, National Commercial Bank (NCB) and Riyad Bank saw significant growth, he added.

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