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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)
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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.

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US Job Growth Surges in September, Unemployment Rate Falls to 4.1%

A woman enters a store next to a sign advertising job openings at Times Square in New York City, New York, US, August 6, 2021. REUTERS/Eduardo Munoz/File Photo
A woman enters a store next to a sign advertising job openings at Times Square in New York City, New York, US, August 6, 2021. REUTERS/Eduardo Munoz/File Photo
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US Job Growth Surges in September, Unemployment Rate Falls to 4.1%

A woman enters a store next to a sign advertising job openings at Times Square in New York City, New York, US, August 6, 2021. REUTERS/Eduardo Munoz/File Photo
A woman enters a store next to a sign advertising job openings at Times Square in New York City, New York, US, August 6, 2021. REUTERS/Eduardo Munoz/File Photo

US job growth accelerated in September and the unemployment slipped to 4.1%, further reducing the need for the Federal Reserve to maintain large interest rate cuts at its remaining two meetings this year.
Nonfarm payrolls increased by 254,000 jobs last month after rising by an upwardly revised 159,000 in August, the Labor Department's Bureau of Labor Statistics said in its closely watched employment report on Friday.
Economists polled by Reuters had forecast payrolls rising by 140,000 positions after advancing by a previously reported 142,000 in August.
The initial payrolls count for August has typically been revised higher over the past decade. Estimates for September's job gains ranged from 70,000 to 220,000.
The US labor market slowdown is being driven by tepid hiring against the backdrop of increased labor supply stemming mostly from a rise in immigration. Layoffs have remained low, which is underpinning the economy through solid consumer spending.
Average hourly earnings rose 0.4% after gaining 0.5% in August. Wages increased 4% year-on-year after climbing 3.9% in August.
The US unemployment rate dropped from 4.2% in August. It has jumped from 3.4% in April 2023, in part boosted by the 16-24 age cohort and rise in temporary layoffs during the annual automobile plant shutdowns in July.
The US Federal Reserve's policy setting committee kicked off its policy easing cycle with an unusually large half-percentage-point rate cut last month and Fed Chair Jerome Powell emphasized growing concerns over the health of the labor market.
While the labor market has taken a step back, annual benchmark revisions to national accounts data last week showed the economy in a much better shape than previously estimated, with upgrades to growth, income, savings and corporate profits.
This improved economic backdrop was acknowledged by Powell this week when he pushed back against investors' expectations for another half-percentage-point rate cut in November, saying “this is not a committee that feels like it is in a hurry to cut rates quickly.”
The Fed hiked rates by 525 basis points in 2022 and 2023, and delivered its first rate cut since 2020 last month. Its policy rate is currently set in the 4.75%-5.00% band.
Early on Friday, financial markets saw a roughly 71.5% chance of a quarter-point rate reduction in November, CME's FedWatch tool showed. The odds of a 50 basis points cut were around 28.5%.