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$266 Mln Deal Boosts Liquidity in Saudi Housing Market

One of the projects under the Sakani program in Saudi Arabia (Asharq Al-Awsat)
One of the projects under the Sakani program in Saudi Arabia (Asharq Al-Awsat)
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$266 Mln Deal Boosts Liquidity in Saudi Housing Market

One of the projects under the Sakani program in Saudi Arabia (Asharq Al-Awsat)
One of the projects under the Sakani program in Saudi Arabia (Asharq Al-Awsat)

The Saudi Real Estate Refinance Company (SRC), owned by the Public Investment Fund, has signed a SAR 1 billion ($266.7 million) agreement with Bidaya Finance to buy a mortgage portfolio.
The deal is the largest of its kind, aimed at injecting liquidity into Saudi Arabia’s housing market.
The agreement, signed on Sunday, was attended by Housing Minister Majed Al-Hogail, who also chairs SRC, and Abdulaziz Al-Omair, Chairman of Bidaya Finance.
This move supports SRC’s efforts to grow the mortgage market and expand refinancing options, aligning with Vision 2030’s goal of increasing homeownership among Saudi citizens.
SRC CEO Majeed Al Abduljabbar said the deal will boost liquidity and stabilize the housing finance market, helping more Saudis own homes. He added that it builds on SRC’s plan to partner with key lenders and develop a strong secondary mortgage market.
“This agreement is a pivotal step toward achieving the strategic objectives of the Housing Program by increasing homeownership among citizens,” Abduljabbar noted.
“It also aligns with our strategy to forge strategic partnerships with leading financing institutions, fostering the development of an active secondary market for residential mortgages,” he added.
Bidaya Finance CEO Mahmoud Dahduli called the agreement a step forward in offering innovative financing solutions, enabling more citizens to achieve their housing goals and contributing to Vision 2030’s housing targets.
“This strategic collaboration with SRC reinforces our shared role in offering reliable, innovative financing solutions that empower citizens to realize their housing aspirations, aligning with the Housing Program’s goal of increasing homeownership,” Dahduli said.
Established in 2017 by the Public Investment Fund, SRC aims to make home financing more accessible by providing liquidity to lenders and supporting Saudi Arabia’s housing sector under the national transformation plan, Vision 2030.

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Saudi-Yemeni Business Council Looks Forward to Contributing to Reconstruction

The Saudi-Yemeni Business Council has met in Makkah. Asharq Al-Awsat
The Saudi-Yemeni Business Council has met in Makkah. Asharq Al-Awsat
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Saudi-Yemeni Business Council Looks Forward to Contributing to Reconstruction

The Saudi-Yemeni Business Council has met in Makkah. Asharq Al-Awsat
The Saudi-Yemeni Business Council has met in Makkah. Asharq Al-Awsat

The Saudi-Yemeni Business Council is leading the initiative "Saudi Vision and Yemeni Development 2030," which aims to enhance economic ties between Saudi Arabia and Yemen by developing border crossings, establishing economic zones, and creating smart food cities. This contributes to facilitating the movement of goods and people, as well as increasing the volume of trade.

Official data indicates that the trade exchange between Saudi Arabia and Yemen reached approximately 6.3 billion riyals (1.6 billion dollars) in 2023, with Saudi exports accounting for the largest share. Despite this, Yemeni imports are still below the available potential, particularly in the agriculture, fisheries, and mining sectors.

The main projects of this initiative, which is led by the council under chairman of the Saudi-Yemeni Business Council Dr. Abdullah bin Mahfouz, include "the establishment of joint economic zones, development of infrastructure and logistics services, and strengthening investment in the agricultural and renewable energy sectors."

The project also involves creating advanced laboratories for testing livestock, fruits, and vegetables, contributing to improving the quality of goods and increasing Yemen's agricultural and livestock exports to Saudi Arabia.

These efforts aim to enhance food security for Saudi Arabia and achieve economic growth for Yemen.

As part of the future plans to enhance economic partnership, an exhibition titled "Reconstruction and Development of Yemen" will be held in Riyadh next year. This exhibition aims to attract investors from various sectors and strengthen partnerships between Saudi and Yemeni companies.

"Yemeni investments in Saudi Arabia have witnessed significant growth, reaching approximately 18 billion riyals (4.8 billion dollars) by the end of 2023, ranking 13th in terms of investment volume."

These investments focus on wholesale and retail trade, particularly in food products, clothing, and household goods, as well as in sectors such as construction, manufacturing, and logistics services.

Bin Mahfouz explained that "this investment expansion is due to the support provided by the Saudi government to Yemeni investors through streamlining licensing procedures, offering investment incentives, and ensuring a stable investment environment. These factors have contributed to attracting Yemeni capital to Saudi Arabia, while enhancing investors' benefits from available economic opportunities."

Despite the noticeable progress, Yemeni investments face significant challenges. According to bin Mahfouz, the main challenges include "the instability of the Yemeni local currency, the banking restrictions that hinder money transfers, the weak infrastructure in Yemen, and the ongoing armed conflicts that increase investment risks."

He said that the council’s future plans focus on promising projects, including the cultivation of agricultural land in Yemen, the establishment of packaging centers for agricultural products and fishery resources, in addition to developing livestock projects.

Bin Mahfouz emphasized that Yemen is considered a key market for Saudi Arabia in providing agricultural and livestock products that have comparative advantages over similar goods from other countries. According to economic data from 2022, animal production ranks second after agricultural production in terms of its contribution to Yemen's total GDP, accounting for more than 20 percent.