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Saudi Real Estate Refinance Company adds liquidity in Saudi ArabiaMENA

Saudi Real Estate Refinance Company adds liquidity in Saudi Arabia

The Saudi Real Estate Refinance Company (SRC) just completed a $1b Sukuk issuance (BTW, Sukuks are similar in nature to US government bonds, with a sharia-compliant twist).

SRC will use the proceeds to boost the country’s housing market by providing banks and mortgage companies with liquidity so that they can in turn offer residents more affordable housing loans.

SRC is owned by Saudi Arabia’s Public Investment Fund and, much like the Kardashians, they are choosing to keep the business in the family by carrying out sovereign-guaranteed Sukuk issuances under its Saudi Riyal program that targets local investors.

why it matters
The issuance shows that Saudi investors are happy to pump their money into the growing real estate market. Also, let's not forget that Saudi's 2030 vision targets a homeownership rate of 70%.