The deal with the SRC and Alrajhi would be the largest of its kind to be signed in the Saudi banking industry
Saudi Real Estate Refinance Company (SRC), a unit of Saudi Arabia’s Public Investment Fund, which is its sovereign wealth fund, has signed a strategic purchase agreement with Alrajhi. Alrajhi is the world’s largest Islamic bank by market cap and mortgage assets and the current deal is done with the intention to refinance more than $1.3 bn real estate financing portfolio. The deal with the Saudi PIF’s unit and Alrajhi would be the largest of its kind to be signed in the Saudi banking industry.
The deal also reflects the current attempts of the Saudi Real Estate Refinance to boost the developmental goals of the residential real estate finance sector by enlarging its refinancing solutions and portfolio to bring in a stable real estate market in the country. The deal was sealed by Alrajhi bank CEO Waleed Abdullah Almogbel and SRC group CEO Fabrice Susini in the presence of the Minister of Municipal and Rural Affairs and Housing, Majid bin Abdullah Al Hogail.
Alrajhi bank is gaining recognition in the Middle East and the institution earlier this month, was honored as one of the largest donors to Ihsan, the national platform for charitable work. The bank donated SAR 14 million to the national campaign to encourage charitable work in the past years through the Ihsan platform.
The new deal is another important addition to a series of major deals to provide support for originators and mortgage financiers to expand the citizens’ access to more adaptable and reasonably priced home financing solutions, tailored to their desires.
Fabrice Susini stated that the agreement with Alrajhi bank is an important step in the group’s strategic pathway to strengthen and hasten growth in Saudi Arabia’s housing market. “It is part of our strategic partnerships with leading financiers and originators which underpin our efforts to develop a best-in-class secondary mortgage market in the kingdom,” added Susini. Susini also stated that the group continues to boost the growth of flexible and affordable home financing which helps in expanding citizens’ ability to own homes that fall in line with Vision 2030.
Alrajhi CEO Waleed Abdullah Almogbel stated that the partnership with SRC helps to support the bank’s continuing joint drive to provide its customers with more flexible and affordable homing solutions, along with hailing the deal as a significant one. He also added that the deal with the Saudi Real Estate Refinance Company would tactfully improve mortgage solutions and will support the financial institution’s traditional abilities to fulfill the demand for home ownership and focus on a larger customer base in the Kingdom of Saudi Arabia.
Through numerous agreements, the Saudi Real Estate Refinance Company several services such as balance sheet de-risking solutions, liquidity, and capital management for real estate financiers and originators’ funding capabilities which helps in increasing the demand for home ownership in the country.
Alrajhi is one of the largest Islamic banks in the world and was established in 1957. With total assets of $102 billion, the Sharia-compliant banking group is significant in bridging the present financial requirements and intrinsic values. With a reputable base in Riyadh, Saudi Arabia, Al Rajhi Bank has a vast network of over 570 branches and more than 5,190 ATMs and has the largest customer base of any bank in the Kingdom. The bank specializes in Retail, Personal, Private, Affluent, Commercial, SME, Corporate, Trade Finance, Cash Management, Islamic Banking, Riba-free Islamic financial products, Treasury, and International Banking.