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EgyptSaudi Arabia’s Real Estate Refinance Company Secures Landmark $2 Billion Sukuk Deal
3 min
The sukuk was issued in two tranches, with maturities of three and ten years.
Investor demand was exceptionally high, with subscriptions exceeding the offer sixfold.
This issuance is part of a broader $5 billion international sukuk program.
The sukuk has been listed on the London Stock Exchange, increasing SRC’s global presence.
Officials view the deal as a critical step toward achieving Vision 2030 housing and economic goals.
In a major move to deepen its presence in global financial markets, the Saudi Real Estate Refinance Company (SRC), a subsidiary of the Public Investment Fund (PIF), has successfully priced its first-ever government-backed international sukuk issuance, raising $2 billion. The offering, divided into two tranches with maturities of three and ten years, attracted overwhelming investor interest, with subscriptions reaching six times the total issuance amount.
This sukuk marks the first issuance under SRC’s $5 billion international sukuk program, now listed on the London Stock Exchange’s International Securities Market (ISM). The move signals Saudi Arabia’s commitment to integrating its mortgage finance sector with global capital markets, improving liquidity, and expanding affordable housing options for citizens.
Minister of Municipal, Rural Affairs, and Housing, Majed bin Abdullah Al-Hogail, hailed the listing as a milestone for Saudi Arabia’s financial and real estate sectors, he said:
“This successful issuance is a testament to global investor confidence in Saudi Arabia’s economic stability and financial markets,”
“It aligns with Vision 2030’s goals to expand homeownership and ensure a sustainable housing finance ecosystem.”
SRC CEO, majeed abduljabbar, emphasized the strategic importance of the sukuk program in securing diversified funding sources and expanding the company’s global footprint, he noted:
“The high demand for our sukuk highlights the trust that international investors place in Saudi Arabia’s economy and the financial sector’s long-term resilience”
“This will enable us to develop more innovative housing finance solutions while strengthening liquidity in the mortgage market.”
Saudi Arabia’s mortgage sector has experienced rapid growth in recent years, with financing volumes soaring from SAR 200 billion in 2018 to SAR 800 billion in 2024. The market is projected to expand further, reaching SAR 1.3 trillion by 2030. The kingdom is also making significant strides in homeownership, surpassing Vision 2030 targets by achieving a 63.7% ownership rate by the end of 2023—exceeding the initially projected 63% for that year.
The issuance was underpinned by SRC’s strong credit ratings from top global agencies, including Fitch (A+), S&P (A), and Moody’s (A2), reinforcing its credibility as a major player in international sukuk markets. By tapping into global capital markets, SRC is not only diversifying its investor base but also strengthening its role in shaping a sustainable and efficient housing finance system in Saudi Arabia.
As SRC continues expanding its international footprint, the success of this inaugural sukuk issuance sets the stage for future offerings, paving the way for increased foreign investment, enhanced market liquidity, and a more robust real estate finance sector in the kingdom.
