The Saudi Central Bank (SAMA) has granted the Saudi Real Estate Refinance Company (SRC) approval to launch the Kingdom’s first residential mortgage-backed securities (RMBS), marking a landmark step in the development of the domestic financial sector.

The program will enable residential mortgage portfolios to be securitized and traded, a move SAMA said will help broaden the investor base, diversify funding sources, and strengthen the resilience of the Saudi debt market.

By creating new investment opportunities, the framework is also expected to improve liquidity and reduce reliance on traditional funding channels.

The launch is closely aligned with Saudi Vision 2030, which aims to expand homeownership, deepen the role of capital markets, and increase private sector participation in housing finance.

It also highlights SAMA’s broader mandate to safeguard financial stability through strong regulatory oversight while enabling banks and mortgage providers to scale their operations sustainably.

Market observers say the initiative could play a pivotal role in unlocking new sources of long-term capital. For lenders, this would mean greater capacity to issue housing loans, ultimately supporting the government’s goal of making homeownership more accessible to Saudi citizens.