Saudi Arabia launches first mortgage-backed securities as SAMA boosts housing finance market

The Saudi Central Bank (SAMA) has granted the Saudi Real Estate Refinance Company (SRC) a no-objection clearance to launch the Kingdom’s first residential mortgage-backed securities (RMBS), in a landmark step for the domestic financial sector.

According to SAMA, the programme is designed to strengthen the housing finance market by transforming residential real estate financing portfolios into securities.

This securitisation framework will broaden the investor base, diversify funding sources, and reinforce the domestic debt market.

Saudi real estate financing

The initiative aligns with the objectives of Saudi Vision 2030, which aims to expand home ownership, deepen capital markets, and attract greater private sector participation.

SAMA emphasised that the launch of RMBS supports its mandate to ensure financial stability through strong regulation and supervision, while enabling the Kingdom’s banking and mortgage sectors to scale sustainably.

By unlocking access to new sources of capital, the move is expected to provide lenders with greater capacity to issue long-term housing loans, supporting the government’s goal of making home ownership more accessible to citizens.