Saudi Real Estate Refinancing Company CEO Fabrice Sousin confirmed in an interview with Al Arabiya that the value of the mortgage market in the Kingdom has tripled in 4 years.
Fabrice Sossin added that Saudi Refinancing, agreements signed with 4 banksand is considering expanding its portfolio to include corporate loans for its employees.
He explained that the company is seeing changes in the market and a change in the model followed, and “we must emphasize the health of the banks. in terms of liquidity, capital and multiple rates, and the credit for this is not only due to the banks but also to the regulator ».
He pointed out that the mortgage market has seen strong growth over the past four years, in terms of value has tripled and in terms of mortgage production has multiplied by 10 times.
He described the company’s agreement with the General Social Insurance Organization and the third under the “Masaken” program, which we acquired and refinanced about 5 billion riyals.
He said the deal is a major deal for its size, of course, and in virtue of the name of the General Organization for Social Security, and its importance in terms of origin for the benefit of the Saudis, and it is important because it is happening for the third time and in quickly.
He pointed out that this partnership with the General Organization for Social Security is long-term and what sets it apart from other partnerships is the speed of execution of the agreements and, in second, the size of the agreements themselves and which are conducted between three parties: the Saudi Real Estate Refinancing Company, the General Organization for Social Insurance and the Dar Al Tamleek Company.
In addition, the Kingdom is witnessing a wide range of infrastructure projects, and these projects need bank financing, according to Sousin, who felt that “from this point of view, banks must continue to meet mortgage demand and innovate products. in in line with the requirements of Saudis and borrowers “.
He felt that banks “are aware of their ability to expand and develop their balance sheets. Over time, some institutions shift from mortgage products that depend on production to maintain, to those that rely on production to sell.”
He expressed the belief that the company, since 2017, when it started its business with real estate finance companies for its access to liquidity, welcomed us, as for banks, the process needed to be rebalanced.
He believed that banks “should realize that by giving up some of their loans, they are not sacrificing yields, but rather it is about improving their balance sheets, and this process has taken time and today the participation rate of banks has increased, and we have signed agreements with four banks and there are three agreements in negotiation phase with three other institutions. “.
He pointed out that the company will continue to work on diversifying its portfolio, as it started with real estate finance companies, then banks, and we are now looking into some non-financial entities such as the General Social Insurance Organization.
He explained that in the non-financial world, in the corporate sector for example, some of them grant loans to employees and we negotiate with the regulator and companies that I cannot disclose about it.
He expected that we will see some such deals enter the market, and it will not be the size of deals with banks, but we want to continue to encourage companies to lend and finance to their employees, which is also within the Vision 2030 goals.
The Saudi Real Estate Refinancing Company – wholly owned by the Public Investment Fund – announced in I anticipate the signing of its third agreement with the General Organization for Social Security, worth two billion riyals, with the aim of refinancing the portfolio of the “Masaken” program financed by the Foundation, in the presence of the Minister of Municipal Affairs and housing and the chairman of the board of directors The Saudi Real Estate Refinancing Company, Majed bin Abdullah Al-Hogail, and the governor of the General Organization for Social Insurance, Mohammed bin Talal Al-Nahhas.
The company explained in a press release that the agreement was born as an extension of two previous agreements that had been signed, bringing the total value of the refinancing agreements between the two parties to 5 billion riyals, as part of the strategic partnership to increase the liquidity of residential properties. real estate and facilitate the ownership of Saudi families by benefiting from the Masaken program launched by “Social Insurance” in 2007, and to achieve the objectives of the Housing Program – one of the Kingdom’s Vision 2030 programs – to reach a 70% ownership percentage by 2030 .
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