alrajhi bank and Saudi Real Estate Refinance Company (SRC) Sign a SAR 10 Billion Real Estate Refinance Portfolios Agreements

alrajhi bank announced the completion of an agreement to purchase two real estate refinance portfolios totaling SAR 10 billion with  The Saudi Real Estate Refinance Company (SRC), a PIF company. The move aims to support the stability of the Kingdom’s real estate market, enhance liquidity for financing institutions, and increase homeownership among Saudi families.

Under the agreement, Alrajhi Bank will continue originating real estate refinancing portfolios that SRC will refinance under the “Originate to Distribute” (OTD) model. This model enables banks and financiers to recycle capital and expand home financing issuance. The collaboration will support sustained liquidity in the market, ensure continuous real estate funding, and reinforce SRC’s securitization activities, contributing to the development of a robust secondary mortgage market in the Kingdom.

This initiative aims to strengthen the stability and long-term sustainability of the residential real estate refinancing ecosystem by providing financing institutions with practical solutions to manage liquidity and capital, enabling banks to continue expanding mortgage lending, and expanding homeownership opportunities for citizens.

alrajhi bank General Manager Retail Banking Majed Saleh Al-Rajhi said, “We are pleased to collaborate with the Saudi Real Estate Refinance Company on finalizing these transactions and launching the Originate-to-Distribute model, which represents a significant step forward in real estate financing mechanisms. This model enables the Bank to continue meeting growing demand for home financing and to simplify the home acquisition journey for a broader segment of citizens, reinforcing our role in supporting social and economic development in the Kingdom.”

SRC CEO Majeed Fahad Al-Abduljabbar said, “The completion of this real estate refinance agreement with Alrajhi Bank reflects our role in enhancing liquidity and stability in the real estate market in partnership with the largest housing finance provider in the Kingdom. Implementing the Originate-to-Distribute model provides a practical framework for developing the secondary real estate market and enabling financing institutions to expand residential mortgage lending. We remain committed to working with our partners to support increased homeownership in line with the Housing Program and Vision 2030.”