The Saudi real estate market will receive finance support after a PIF-backed firm signed an agreement with US giant BlackRock.
The Saudi Real Estate Refinance Company (SRC), a subsidiary of the Public Investment Fund, has signed a memorandum of understanding (MoU) with the US BlackRock conglomerate in New York City, to develop programs in the real estate finance market in Saudi Arabia, and increase the share of businesses in the real estate sector capital markets.
The MoU was signed on the sidelines of the official visit of Saudi Minister of Municipalities and Housing, Majid bin Abdullah Al-Hogail who is also SRC Board of Directors chairman.
Saudi real estate finance
The minister and his accompanying delegation are in the US to discuss ways to boost Saudi-American partnerships in the urban development, construction, building, finance and real estate development sectors.
The agreement was signed by SRC CEO Majid Fahd Al Abduljabbar and General Manager of BlackRock in the Middle and CEO of BlackRock KSA Yazeed Al-Mubarak. BlackRock President Robert Capito attended the signing ceremony.
The MoU aims to accelerate the development of programs in the real estate refinancing market in the Kingdom, and expand through local and international capital market channels.
It also seeks to diversify funding sources through fixed income markets, which is bound to increase the stability of the real estate finance market, and contribute to achieving the goals of the housing and financial sector development programs, which serve as enablers of the Kingdom’s Vision 2030.
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