The Saudi Real Estate Refinance Company (SRC), a PIF company, has entered into a partnership with Hassana Investment Company (Hassana), the investment arm company of the General Organization for Social Insurance.
The partnership seeks to drive the goals of Saudi Arabia’s Housing Program and Financial Sector Development Program, in line with the objectives of Saudi Vision 2030. The signing ceremony was attended by His Excellency the Minister of Municipalities and Housing, Majid bin Abdullah Al-Hogail, and His Excellency the Minister of Finance, Mohammed bin Abdullah Al-Jadaan.
The MoU will enhance the financial market in the Kingdom, improving liquidity in the real estate finance sector by introducing an innovative asset class through the issuance of residential mortgage-backed securities. Through these issuances, a diverse base of local and global investors will be attracted to the secondary mortgage market, boosting investment opportunities in the sector.
As a prominent institutional investor, Hassana’s participation highlights the potential for the investors to align efforts in cultivating sustainable economic investment opportunities. This stems from its role as a key investor in mortgage-backed securities issued by SRC, contributing to the sustainability of the real estate financing ecosystem.
Majeed Al Abduljabbar CEO – SRC
“Our partnership with Hassana marks a significant milestone in supporting the evolution of the housing finance landscape and fostering the development of Saudi Arabia’s capital markets. Together, we aim to introduce innovative financial solutions that deliver value to both investors and citizens while aligning with Vision 2030’s objectives.”
Saad Al Fadhli, CEO of Hassana, added that, “This collaboration establishes a new standard for partnerships, enabling the development of scalable financial solutions that contribute to the Kingdom’s economic development goals. It aligns with Hassana’s strategy of diversifying its investment portfolios through long-term partnerships with entities like SRC.”
Saudi Real Estate Refinance Company, established in 2017 by the Public Investment Fund, aims to enhance the Kingdom’s real estate finance market. SRC, licensed by the Saudi Central Bank, plays a crucial role in driving the targets of the Housing Program under Saudi Vision 2030, which focuses on enhancing homeownership rates among Saudi citizens.
This is accomplished by providing liquidity to financiers, enabling them to offer affordable housing finance to individuals, and working closely with partners to support the Kingdom’s housing ecosystem.
Hassana is dedicated to delivering sustainable financial returns that drive long-term economic growth. Through strategic investments across a diverse array of sectors, it underscores its commitment to securing a prosperous financial future for Saudi generations.
