Saudi Real Estate Refinance Company Seeks to Issue Sukuk Worth SAR 3 Billion in Domestic Auction 

The Saudi Real Estate Refinance Company (SRC), the Public Investment Fund’s (PIF) fully owned entity, has announced its intention to issue local currency Sukuk worth SAR 3 billion (USD 798.34 million), according to its Chief Executive Officer (CEO), Fabrice Susini, on the 6th of September 2022.

Why it Matters?

High oil prices, good Gross Domestic Product (GDP) growth, employment growth, and government subsidies are macroeconomic factors that underpin the Saudi Arabia market, but mortgage loan growth could decrease even more depending on the size of interest rate rises and whether these macroeconomic factors alter. According to Susini, rising interest rates cannot be ignored as they will cause a slowdown in mortgage origination, yet the numbers re...