Deals aim to enhance Kingdom’s mortgage refinancing market, expand property funding and attract foreign investments New real estate initiatives address housing shortfall and create job opportunities JEDDAH: Saudi Arabia’s housing sector has strengthened its international partnerships by signing five key agreements on real estate development and financing with major US companies. The deals aim to enhance the Kingdom’s mortgage refinancing market, expand property funding, and attract foreign investments. The country’s housing program has transformed the sector by expanding financial access, streamlining regulations, and offering diverse market options. The new real estate initiatives address the housing shortfall and create job opportunities for citizens. These reforms drive the Kingdom toward its 2030 goal of achieving 70 percent homeownership and ensuring every family can own their ideal property. Homeownership has increased from 47 percent to over 60 percent by 2022. The agreements were signed in the presence of the Kingdom’s Minister of Municipalities and Housing, Majid Al-Hogail, before concluding his official visit to the US on Aug. 25, according to the Saudi Press Agency. During his visit, the Saudi Real Estate Refinance Co. signed two MoUs with BlackRock and King Street to develop the mortgage refinancing field by expanding it through local and international capital markets. The partnerships aim to diversify funding sources via fixed-income markets, thereby attracting more foreign investments to the Kingdom. The Saudi Mortgage Guarantee Services Co., or Damanat, inked two partnership agreements with BlackRock and Apollo to develop investment strategies and funds for real estate financing. They are also meant to expand the base of local and global investors and contribute to the sustainable growth of the real estate market. Damanat is fully owned by the Saudi Real Estate Development Fund. The company, licensed by the Saudi Central Bank in 2023 to provide general and savings insurance alongside the mortgage provision, was established with SR18 billion ($4.79 billion) in capital to help achieve the Kingdom’s Vision 2030’s housing objectives by encouraging firms to offer subsidized home ownership financing solutions. Another MoU was signed between the Ministry of Municipalities and Housing and K. Hovnanian ME, a company with a track record of developing 500,000 housing units in the US, to build more integrated residential communities in Saudi Arabia, SPA reported. Al-Hogail held talks with various US government officials, heads of construction and real estate development companies, and financial institutions. The meetings aimed to strengthen bilateral relations, build partnerships, exchange expertise, and attract successful international housing, real estate, and urban development practices.