New York, USA : The Saudi Real Estate Refinance Company ( SRC ), a subsidiary of the Public Investment Fund, signed a memorandum of understanding with BlackRock in New York City, with the aim of developing programs in the real estate finance market in the Kingdom, and increasing the participation of institutions in the capital markets in the real estate sector, under the patronage of His Excellency the Minister of Municipalities and Housing, Chairman of the Board of Directors of the Saudi Real Estate Refinance Company, Mr. Majed bin Abdullah Al-Hogail .

The MoU comes on the sidelines of the official visit of His Excellency the Minister of Municipalities and Housing and the accompanying ministerial delegation to the United States of America, to discuss ways to enhance Saudi-American partnerships in the sectors of urban development, construction, building, finance and real estate development. The agreement was signed by the CEO of the Saudi Real Estate Refinance Company, Majeed Fahd Al-Abdul Jabbar, and the General Manager, BlackRock in the Middle East, and CEO of BlackRock Saudi Arabia, Yazeed Al-Mubarak, in the presence of the President of BlackRock, Robert Capito .

The memorandum aims to accelerate the development of programs in the real estate refinancing market in the Kingdom of Saudi Arabia, and expand through local and international capital market channels. It also seeks to diversify funding sources through fixed income markets, which will reflect on increasing the stability of the real estate finance market, and contribute to achieving the goals of the housing and financial sector development programs, as they are enablers of the Kingdom’s Vision 2030 .

The CEO of the Saudi Real Estate Refinance Company said: “The new agreement with BlackRock comes within the company’s efforts to expand the participation of local and international investors in the real estate refinancing market in the Kingdom, by working with regulatory authorities to create organized and scalable frameworks, and create attractive investment opportunities in securities related to real estate refinancing.”

Al-Abdul Jabbar added that the agreement aims to attract international investors and expand the real estate investment base in line with the increasing growth witnessed by the real estate finance sector, in addition to integrating international standards with local opportunities and benefiting from international expertise and experiences to develop a more advanced and innovative secondary real estate finance market, which contributes to enhancing economic diversity and achieving the goals of the Kingdom’s Vision 2030 .

For his part, the General Manager of BlackRock Middle East and CEO of BlackRock Saudi Arabia, confirmed that the partnership agreement aims to develop housing-related capital markets in the Kingdom of Saudi Arabia in cooperation with SRC , a leading company in developing real estate refinancing solutions for Saudi banks and real estate finance companies, expressing his aspiration to enhance the real estate finance market and other capital market solutions, with the aim of enabling global investors to participate in this growing, high-quality category of fixed-income assets .

He added that BlackRock was established to manage fixed income based on mortgages, with a focus on innovation and customer solutions, indicating that the company's business in the Kingdom enjoys the same pioneering approach and dedication, so we are honored to be part of this important initiative within Saudi Vision 2030, and we look forward to continuing to be "BlackRock" a strategic partner in expanding capital markets .

This year, BlackRock Riyadh Investment Management ( BRIM ) was established, which will include investment strategies across a range of asset classes for the Saudi market, including public and private markets, managed by an investment team based in Riyadh .

It is noteworthy that the Saudi Real Estate Refinance Company was established in 2017 by the Public Investment Fund as part of government initiatives to achieve the housing program targets within the Kingdom's Vision 2030; to be a fundamental pillar to support the housing system by injecting liquidity into the residential real estate finance market in the Kingdom in an effort to ensure its continuity and stability, as the company obtained a license from the Saudi Central Bank to work in the field of real estate refinancing .

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