Black Rock Partners with Saudi Real Estate Refinance Company

The agreement, signed in New York, aimed at developing the real estate finance market programme in the Kingdom

Saudi Real Estate Refinance Company (SRC), a PIF Company, has signed a memorandum of understanding in New York City with BlackRock. The agreement aims to develop the real estate finance market programme in the Kingdom and increase institutional participation in capital markets within the real estate sector. The signing was conducted under the patronage of His Excellency Majed bin Abdullah Al-Hogail, Minister of Municipalities and Housing and Chairman of the SRC Board of Directors.

During His Excellency the Minister of Municipalities and Housing's official visit to the United States, a ministerial delegation signed the MoU to explore ways to strengthen Saudi-American partnerships in the sectors of urban development, construction, building, finance, and real estate development. Majeed Fahd Al-Abdul Jabbar, CEO of the Saudi Real Estate Refinance Company, and Yazeed Al-Mubarak, Managing Director, BlackRock in the Middle East and CEO of BlackRock Saudi Arabia, signed the agreement in BlackRock President Robert Kapito's presence.

The new agreement with BlackRock is part of the company's ongoing efforts to expand the participation of both local and international investors in the real estate refinancing market in the Kingdom by working with regulators to establish scalable, well-regulated frameworks and create attractive investment opportunities in securities related to real estate refinancing.

Majeed Al-Abduljabbar, CEO, Saudi Real Estate Refinance Company 

The memorandum aims to accelerate the development of real estate refinancing market programmes in the Kingdom of Saudi Arabia and expand through both local and international capital market channels. It also seeks to diversify funding sources through fixed income markets, which will enhance the stability of the real estate finance market and contribute to achieving the goals of Housing and Financial Sector Development Programs, key enablers of Vision 2030.

SRC’s CEO Majeed Al-Abduljabbar commented on this, "The new agreement with BlackRock is part of the company's ongoing efforts to expand the participation of both local and international investors in the real estate refinancing market in the Kingdom by working with regulators to establish scalable, well-regulated frameworks and create attractive investment opportunities in securities related to real estate refinancing."

He added, “We also aim to attract international institutional investors to develop a broad base of investors in this sector in line with the growth of the real estate financing sector, integrate the international standards with the local opportunities, and employ the international experiences to develop a secondary real estate financing market, which is to be more developed and innovative. This will promote economic diversification, and achieve the goals of the Vision 2030.”

Managing Director, BlackRock Middle East and CEO, BlackRock Middle East, “BlackRock is honoured to partner with SRC and help evolve the development of Saudi Arabia’s housing-related capital markets. SRC is pioneering the development of mortgage refinancing solutions for Saudi banks and home finance companies. We look forward to advancing real estate financing with the aim to enable the international investors to participate in this developing high-quality class of fixed assets.”

“BlackRock was founded as a mortgage focused fixed income manager with a focus on innovation and client solutions. Our business in KSA is driven with the same entrepreneurial approach and dedication, so we are honoured to be playing a part in this important Vision 2030 initiative and continuing to be a strategic partner to expand the capital markets. This year, we launched the BlackRock Riyadh Investment Management (BRIM), which encompasses investment strategies across a range of asset classes for the Saudi Arabia market, including both public and private markets, managed by a Riyadh-based investment team.”

The Saudi Real Estate Refinance Company (SRC) was established in 2017 by the Public Investment Fund as part of government initiatives aimed at achieving the Housing Program targets under the Vision 2030. The company serves as a fundamental pillar in supporting the housing system by injecting liquidity into the residential real estate finance market, ensuring its continuity and stability. SRC has also obtained a license from the Saudi Central Bank to operate in the field of real estate refinancing.