The Saudi Real Estate Refinance Company has signed an agreement to acquire a mortgage portfolio from Arab National Bank, a transaction that extends the reach of the Kingdom's secondary mortgage market and builds further infrastructure for housing finance under Vision 2030. The agreement was signed on 10 August 2025.
SRC operates as a secondary mortgage market facility wholly owned by the Public Investment Fund, Saudi Arabia's sovereign wealth vehicle. Its mandate is to purchase mortgage loans originated by banks and other primary lenders, freeing up balance sheet capacity at those institutions and channelling long-term capital into the housing sector. The purchase of ANB's mortgage book is consistent with that mission and marks another step in SRC's programme of portfolio acquisitions from Saudi commercial lenders.
DEEPENING THE SECONDARY MORTGAGE MARKET
Saudi Arabia's secondary mortgage market remains relatively nascent compared with its counterparts in more developed economies, and transactions of this type are central to building the depth and liquidity that the market requires. By acquiring ANB's portfolio, SRC absorbs a tranche of mortgage assets and, in return, allows ANB to redeploy capital into new origination or other lending activity.
Arab National Bank is one of Saudi Arabia's established commercial lenders with a meaningful presence in retail and corporate banking. Its mortgage book reflects the growth in home lending that has accompanied rising homeownership ambitions across the Kingdom. The transfer of that portfolio to SRC is structured to ensure continuity of service for underlying borrowers, with the economic interest shifting to the refinance company rather than the originating bank.
The transaction also contributes to the standardisation of mortgage-backed instruments in the Kingdom, a prerequisite for attracting institutional investors into securitisation structures further down the line. SRC has previously worked to develop frameworks for issuing bonds backed by Saudi residential mortgages, and portfolio acquisitions such as this one supply the raw material for those structures. Building a track record of consistent portfolio purchases from multiple originators strengthens the credibility and depth of the secondary market infrastructure SRC is seeking to establish.
VISION 2030 HOUSING GOALS AT THE FORE
Housing finance development sits at the core of Vision 2030's social commitments, with the Saudi government targeting a significant increase in homeownership rates across the Kingdom. The Ministry of Municipal and Rural Affairs and Housing has been a central body in coordinating policy across the mortgage origination and refinancing ecosystem, and SRC's role as the secondary market anchor is integral to that coordination.
Expanding the volume of mortgages that can be refinanced through SRC's balance sheet is expected to exert downward pressure on the cost of home loans over time, as lenders gain confidence that long-dated mortgage assets can be sold into a liquid secondary market. The ANB agreement adds another transaction to SRC's growing portfolio of such purchases.
Policymakers see a well-functioning secondary mortgage market as critical to sustaining the pace of new housing construction and purchase activity that Vision 2030 requires. With construction pipelines expanding across major urban centres, ensuring that primary lenders do not face balance sheet constraints on mortgage origination is a strategic priority, and SRC's acquisition activity directly addresses that concern.