The Saudi Real Estate Refinancing Company – wholly owned by the Public Investment Fund – announced the signing of its third agreement with the General Organization for Social Insurance, worth two billion riyals; With the aim of refinancing the portfolio of the “Masaken” program funded by the Corporation, in the presence of the Minister of Municipal and Rural Affairs of Housing, Chairman of the Board of Directors of the Saudi Real Estate Refinancing Company, Majid bin Abdullah Al-Hogail, and the Governor of the General Organization for Social Insurance Muhammad bin Talal Al-Nahhas.
The company explained in a statement that the agreement is an extension of two previous agreements that were signed, bringing the total value of the refinancing agreements between the two sides to 5 billion riyals, as part of the strategic partnership to enhance the liquidity of residential real estate financing and facilitate the ownership of Saudi families by benefiting from the Masaken program launched by “Social Insurance”. In 2007, in order to achieve the objectives of the Housing Program – one of the programs of the Kingdom’s Vision 2030 – to reach 70% ownership by 2030.
The agreement comes in line with the commitment of the General Organization for Social Insurance to work with the private sector to enhance the services provided to beneficiaries in all cities and regions of the Kingdom, according to which Dar Al Tamleek Company manages and markets the Masaken program to provide financing solutions in the form of Murabaha at a fixed cost for employees and retirees in the public and private sectors in order to increase the proportion of home ownership in the Kingdom.
The Governor of the General Organization for Social Insurance, Muhammad bin Talal Al-Nahhas, said: “The General Organization for Social Insurance is proud to be an important part of the housing system in the Kingdom, and our prominent role has prompted us once again to expand our partnership with the Saudi Real Estate Refinance Company, where we cooperate together to achieve the objectives of the housing program – One of the programs of the Kingdom’s Vision 2030, as the agreement will enhance the achievement of these goals by providing ownership solutions for Saudi families.”
For his part, the CEO of the Saudi Real Estate Refinancing Company, Fabrice Sosini, stated that the agreement reflects the goals of the Saudi Real Estate Refinance Company in the Saudi housing market by strengthening strategic partnerships with many parties to provide solutions to manage risks and provide greater liquidity in the market, pointing out that this agreement will contribute In achieving the company’s goals to raise the proportion of home ownership for Saudi families, promote an increase in the supply of residential real estate financing and reduce the cost of financing for Saudi families, in addition to providing more dynamic financing solutions to build a strong residential real estate financing sector in the Kingdom.
While the CEO of Dar Al Tamleek Company, Ghassan Al Amoudi, pointed to the importance of this agreement, which is the third of its kind, confirming the strength of Dar Al Tamleek management of the Masaken program during the past decade. The agreement also confirms that the Masaken program is one of the most successful real estate financing programs in the Kingdom, stressing the commitment to “Dar Al Tamleek” will continue to achieve success and provide the highest levels of service, expressing the hope that the agreement will contribute to increasing Saudi families’ owning opportunities.
It is noteworthy that the Saudi Refinancing Company provides the necessary liquidity to real estate financiers to expand housing finance by collecting financing portfolios in Sharia-compliant securities to sell to local and international investors. In order to keep” to “finance for sale”, to benefit all stakeholders in the housing market by enhancing liquidity, reducing risks and reducing the cost of financing for Saudi families.