The Saudi Real Estate Refinance Company (SRC), a subsidiary of the Public Investment Fund (PIF), has entered into a landmark Memorandum of Understanding (MoU) with Hassana Investment Company (Hassana), the investment arm of the General Organization for Social Insurance. This pivotal collaboration aims to advance Saudi Arabia’s housing and financial sectors, in line with the Kingdom’s ambitious Vision 2030 goals.
The agreement was formalized in the presence of notable figures, including His Excellency Majid bin Abdullah Al-Hogail, Minister of Municipalities and Housing, and His Excellency Mohammed bin Abdullah Al-Jadaan, Minister of Finance.
Expanding Real Estate Liquidity and Investment Opportunities
The MoU sets the foundation for broadening the Kingdom’s financial markets by introducing a groundbreaking asset class—residential mortgage-backed securities. This innovative move aims to enhance liquidity within the real estate finance sector while attracting both local and global investors to Saudi Arabia’s secondary mortgage market.
Hassana’s active involvement highlights its role as a leading institutional investor committed to promoting sustainable economic opportunities. By investing in SRC-issued mortgage-backed securities, Hassana will play a crucial role in ensuring the long-term viability of the real estate financing ecosystem.
Majeed Al Abduljabbar, CEO of SRC, expressed optimism about the partnership, stating, “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.”
A Collaborative Vision for Economic Growth
Saad Al Fadhli, CEO of Hassana, emphasized the strategic importance of this collaboration, saying, “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.”
Since its establishment in 2017, SRC has played a vital role in developing Saudi Arabia’s real estate finance market. Licensed by the Saudi Central Bank, SRC provides liquidity to financiers, empowering them to offer affordable housing solutions. These efforts align with the Housing Program under Vision 2030, which aims to significantly increase homeownership rates among Saudi citizens.
Meanwhile, Hassana continues to focus on sustainable financial growth by investing strategically across diverse sectors, ensuring long-term prosperity for future generations in Saudi Arabia.
