London, February 23, 2025 – In a significant step aimed at bolstering Saudi Arabia's presence in global financial markets, Majed Al-Hogail, the Minister of Municipalities and Housing and Chairman of the Saudi Real Estate Refinance Company (SRC), has overseen the listing of SRC's inaugural international sukuk programme, valued at an impressive $5 billion, on the prestigious London Stock Exchange. This strategic move marks a crucial milestone in strengthening the Kingdom's mortgage finance market, enhancing liquidity, attracting foreign investments, and further advancing the objectives set out in Saudi Vision 2030.
The listing ceremony, which attracted key figures from the international financial community, was attended by notable individuals including Saudi Ambassador to the United Kingdom, Prince Khalid bin Bandar bin Sultan, and Lord Mayor of the City of London, Alastair King. Senior officials from both the financial and investment sectors were also present, underscoring the global importance of this event.
Al-Hogail emphasized that the successful listing of SRC’s sukuk reflects the robustness of the Saudi economy and highlights the increasing attractiveness of the Kingdom’s real estate market to international investors. "This listing is not only a testament to the strength of the Saudi economy but also a significant step in integrating Saudi Arabia into global financial markets,” said Al-Hogail. He further noted that the sukuk issuance would play a pivotal role in diversifying funding sources for the housing sector and stimulating foreign direct investment (FDI), which will drive the growth of the Kingdom’s real estate market and support the achievement of Vision 2030 goals.
The primary objective of the sukuk issuance is to stimulate sustainable investment in Saudi Arabia's housing sector, especially in terms of mortgage finance. Al-Hogail highlighted that SRC’s role is critical in ensuring the long-term sustainability of mortgage finance by developing innovative and competitive financing solutions for mortgage lenders. This initiative aligns with Saudi Arabia's overarching goal of increasing homeownership among its citizens, with the ambitious target of reaching 70% homeownership by 2030.
Moreover, the listing of the sukuk programme is expected to catalyze the development of a secondary mortgage market, providing more accessible and affordable financing options for Saudi citizens. Al-Hogail stressed that this initiative is an integral part of the Financial Sector Development Program, which aims to create a more diversified and robust financial system that can support the housing sector's continued growth.
The CEO of SRC, Majid Al-Abd Al-Jabbar, echoed these sentiments, affirming that the successful listing of the sukuk programme is a clear reflection of global market confidence in both Saudi Arabia’s economy and the sustainability of its mortgage finance sector. He stated, "This milestone represents a critical turning point in the growth of the real estate finance market in Saudi Arabia and will pave the way for new strategic partnerships with leading global financial institutions. These partnerships will enhance SRC’s ability to provide sustainable and innovative financing solutions, ultimately benefiting the broader housing sector."
The listing also serves as a key driver in strengthening Saudi Arabia's real estate market as a competitive global investment hub. The Kingdom’s growing appeal as a destination for foreign investments is underpinned by a robust economic environment, a dynamic regulatory framework, and an unwavering commitment to attracting international capital. By tapping into international financial markets, Saudi Arabia is positioning itself as a leader in global real estate finance, while simultaneously contributing to the sustainable development of its housing sector.
Founded by the Public Investment Fund (PIF) in 2017, the Saudi Real Estate Refinance Company (SRC) has been at the forefront of transforming Saudi Arabia’s real estate finance market. Licensed by the Saudi Central Bank to operate in the field of real estate refinancing, SRC has played an instrumental role in achieving the Kingdom’s housing program objectives under Saudi Vision 2030. By providing liquidity to mortgage financiers, SRC enables them to offer affordable housing finance to individuals, thus contributing to the overall sustainability of the Kingdom’s housing ecosystem.
As Saudi Arabia continues its ambitious path toward Vision 2030, the listing of SRC’s international sukuk programme is another step forward in strengthening the Kingdom’s financial position on the global stage. This achievement highlights Saudi Arabia’s commitment to fostering innovation, expanding financial options, and enhancing the affordability and accessibility of homeownership for its citizens. With such initiatives, the Kingdom is set to continue shaping the future of its housing market and supporting long-term economic growth.