SRC Prepares to Offer Global Dollar-Denominated Sukuk

Chief Business and Markets Officer at Saudi Real Estate Refinance Company (SRC) Majeed Abduljabbar (Asharq Al-Awsat)
Chief Business and Markets Officer at Saudi Real Estate Refinance Company (SRC) Majeed Abduljabbar (Asharq Al-Awsat)
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SRC Prepares to Offer Global Dollar-Denominated Sukuk

Chief Business and Markets Officer at Saudi Real Estate Refinance Company (SRC) Majeed Abduljabbar (Asharq Al-Awsat)
Chief Business and Markets Officer at Saudi Real Estate Refinance Company (SRC) Majeed Abduljabbar (Asharq Al-Awsat)

Chief Business and Markets Officer at Saudi Real Estate Refinance Company (SRC) Majeed Abduljabbar revealed that his company is planning to issue dollar-denominated sukuk. The move aims to attract foreign investments and protect portfolios through issuing mortgage-backed securities.

This will ensure the flow of investments and secure the necessary liquidity to support the growth of the sector.

Abduljabbar said that SRC seeks to be a major supporter within the housing system. He stressed the company wanting to help the Kingdom achieve its goal of 70% of citizens owning homes by 2030.

SRC has already helped Saudi Arabia raise its rate of citizen home ownership from 47% to 60%.

Since its establishment in 2017, SRC has witnessed strong growth in its business and partnerships in the real estate financing sector.

This growth is part of the various initiatives and programs that the housing sector in Saudi Arabia is witnessing, keeping pace with the goals of the national transformation plan, Vision 2030.

Abduljabbar stressed that within the context of its development role, SRC and its partners from the financing agencies play an important role in helping to reduce the burden on capital and lessen global financial and real estate risks in the future.

“However, the company always strives to balance profits, with the aim of obtaining a fair profit for the purpose of sustainability and achieving its strategy in the real estate market,” said Abduljabbar.

“The objective of establishing SRC is to support liquidity in the real estate finance market to ensure the realization of Vision 2030 in promoting citizens’ ownership of their homes,” he affirmed.

“SRC plays a supportive role in providing liquidity and capital and risk management solutions to financing agencies,” he explained.

“We have worked to provide new sources of financing in the real estate finance market locally and globally.”

“SRC also contributes to supporting the objectives of the financial sector development program by providing real estate refinancing products.”

Abduljabbar clarified that SRC offers refinancing products by purchasing portfolios and finding financing solutions and an effective secondary market. It also does so by actively contributing to the growth of the debt instruments market to increase the diversification of financing options for the private sector and creating a new class of assets for investors.



Biden Administration Proposes Rules to Curb Investments in China's AI, Tech Sector

Treasure Secretary Janet Yellen addresses the Economic Club of New York luncheon, Thursday, June 13, 2024, in New York (AP)
Treasure Secretary Janet Yellen addresses the Economic Club of New York luncheon, Thursday, June 13, 2024, in New York (AP)
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Biden Administration Proposes Rules to Curb Investments in China's AI, Tech Sector

Treasure Secretary Janet Yellen addresses the Economic Club of New York luncheon, Thursday, June 13, 2024, in New York (AP)
Treasure Secretary Janet Yellen addresses the Economic Club of New York luncheon, Thursday, June 13, 2024, in New York (AP)

The United States Treasury Department has fleshed out a proposed rule that would restrict and monitor US investments in China for artificial intelligence, computer chips and quantum computing.

The fleshed-out draft rule, issued on Friday, stems from President Joe Biden’s August executive order regarding the access that “countries of concern” have to US dollars to fund advanced technologies that could enhance those nations’ military, intelligence, surveillance and cyber-capabilities. The order identified China, Hong Kong and Macau as countries of concern, according to the Associated Press.

The Biden administration has sought to stymie the development of technologies by China, the world’s second largest economy, that could give it a military edge or enable it to dominate emerging sectors such as electric vehicles (EVs).

In addition to the proposed rule, Biden, a Democrat, has also placed a stiff tariff on Chinese EVs, an issue with political implications as Biden and his Republican presidential opponent Donald Trump are both trying to show voters who can best stand up to China, a geopolitical rival and major trading partner.

According to the Financial Times, the regulation — which could be amended following a six-week public comment period — is aimed at restricting the flow of US technology, capital and expertise to groups in China that work with the People's Liberation Army.

The newspaper said it is the latest US effort to make it harder for Chinese groups deemed to be a security threat to gain access to new technology and will complement several sweeping export control packages introduced over the past two years.

Assistant Secretary of the Treasury for Investment Security Paul Rosen said, “This proposed rule advances our national security by preventing the many benefits certain US investments provide—beyond just capital—from supporting the development of sensitive technologies in countries that may use them to threaten our national security.”

The regulation would introduce outright bans on certain investments and require American individuals and organizations to notify the government of other transactions, FT said.

It also includes possible exceptions, including for investments in publicly traded securities or funds. The new rule would affect everything from equity investments to debt financing that is convertible to equity. It would also apply to greenfield investments and joint ventures. But it would exempt investments by limited partners (LP) — endowments and pension funds that seed venture capital and private equity groups — below a certain threshold.

According to FT, the Treasury said the regulation would prevent the exploitation of US investment by countries “seeking to develop sensitive technologies or products that are critical to the next generation of military, intelligence, surveillance, or cyber-enabled capabilities” that pose a threat to the US. But it singled out China as a “country of concern.”

J. Philip Ludvigson, a partner at King & Spalding and a former Treasury official for Investment Security, said “companies and investors are now getting a much better look at what will be expected of them” under the new outbound investment program.

“These added details are particularly important because the private sector will be shouldering the many due diligence and compliance burdens associated with making new investments,” he said.

The Biden administration has been criticized — mostly by Republican lawmakers — for not proposing to ban investment in publicly traded securities.

FT said the effort to screen outbound investment is one of a number of issues that have stoked tensions between the US and China.

In the six months since Biden and China’s President Xi Jinping met in San Francisco, the two countries have stepped up high-level engagement to try to stabilize relations.

But senior US officials from Treasury secretary Janet Yellen to national security adviser Jake Sullivan have been clear with Beijing that Washington will continue to introduce measures to reduce what they view as security threats from China.