Saudi housing’s journey to the international markets
Ever since the launch of Vision 2030, housing has been a key priority for Saudi Arabia. Along with the home building has come a vibrant mortgage market, the formation of a secondary liquidity provider and the building blocks that will lead to a new securitized asset class in global markets.
Could Saudi Arabian mortgages be the next major securitized asset class in the international debt markets? There is a long way to go, but there is a swell of momentum, driven by the state’s long-term ambitions around house financing. A first international issue from Saudi Real Estate Refinance Company (SRC), the local equivalent of Fannie Mae set up in 2017, should hit the markets later this year and will be closely watched.
“We aim for an international inaugural issuance before the year end,” says Fabrice Susini, the ex-BNP Paribas banker who leads SRC as chief executive.