Tadawul draft brings mortgage securitization of nearly $258bn closer

▤ Summary

Saudi Exchange has proposed draft rule changes that would let special purpose entities issue and list debt instruments, moving Saudi mortgage securitization closer to reality. The article says Saudi banks now hold about SR968 billion in mortgage loans, creating a large pool of assets that could be packaged into securities over time. It explains how securitization could help banks manage balance sheets, diversify funding, and transfer some credit risk to investors. The piece also highlights Saudi Real Estate Refinance Co. as a key intermediary and notes that the new framework is still in consultation.

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