Arab News, Monday, Mar 15, 2021 | Shaaban 1, 1442
Saudi Real Estate Refinance assets may double as mortgage sector booms
Saudi Arabia: 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.