Business & Money | Monday 22 July, 2019 11:16 am |

The Saudi Real Estate Refinancing Company (a wholly-owned subsidiary of the Public Investment Fund) today announced that it has signed a partnership agreement with Deutsche Gulf Finance, which includes the purchase of real estate portfolios and the provision of financial facilities worth more than 2.25 billion riyals to inject more liquidity into the housing sector and ensure stability and growth. In addition to reducing the annual rate of profit on the financing provided to citizens of the "Deutsche Gulf Finance" by 36%, which contributes to increase the chances of housing ownership for Saudi families.
The Saudi Real Estate Refinancing Company (SRC) said in a press release today that the partnership is important because it will help push Deutsche Gulf Finance's plans to provide affordable home finance solutions to citizens, supporting the role of the Saudi Mortgage Refinancing Company The mortgage market in the Kingdom.
According to the partnership agreement, the Saudi Mortgage Refinance Company will regularly receive the mortgage finance portfolios issued by Deutsche Gulf Finance, as well as provide Murabaha credit facilities that allow the issuance of real estate finance to citizens.
The agreement was signed by Chief Executive Officer of Saudi Real Estate Refinance Company Fabrice Sousini and Chief Executive Officer of Deutsche Gulf Finance Mohammed Al-Duwaish, under which Deutsche Gulf Finance will increase long-term fixed-rate mortgages with a maturity of 25 Which contributes to the stability of citizens throughout the period of funding.
"This agreement is a strong and effective partnership with Deutsche Gulf Finance and will contribute to the company's goal of increasing home ownership and enabling homegrown citizens to access mortgage finance more easily, By restructuring the market and enhancing the effectiveness of the mortgage market in the Kingdom by improving financing and liquidity conditions.
The agreement follows the recent announcement by the Saudi Mortgage Refinancing Company to cut the annual profit rate by 40 basis points on long-term mortgages at a fixed profit rate and extend its maturity to 25 years. This reduction is the second in the profit margin in less than three months , With the previous fixed profit rate reaching around 80 basis points.
"The agreement reflects the continuous cooperation between the two companies to achieve the objectives of the Kingdom's Vision 2030 in raising the percentage of citizens' right to adequate housing," said Mohammed Al-Duwaish, Chief Executive Officer of Deutsche Gulf Finance. For 25 years.
The Saudi Refinance Company aims to refinance 20% of the mortgage market in Saudi Arabia, which is expected to grow to 500 billion Saudi riyals by 2020 and 800 billion Saudi riyals over the next 10 years. Since its establishment in 2017, Has consistently strived to stimulate the development of the residential mortgage market, as well as standardize the standards within the sector and develop best practices.