Purchase, securitization of Shariah real estate portfolios discussed in Saudi Arabia – ZAWYA

Purchase, securitization of Shariah real estate portfolios discussed in Saudi Arabia – ZAWYA

purchase, securitization of shariah real estate portfolios discussed in saudi arabia the role of improving homeownership remains one of the most important part of the vision 2030    "this panel on murabaha financing reiterates src's role in supporting the residential real estate financing market in the kingdom and provide liquidity to financial institutions, reducing the cost of mortgages for citizens with products that are in line with the shariah principles,“ he added.fabrice susini, ceo of src, said: "at src we believe in continuous improvement to our processes, regulations and products in every aspect of our business with a goal of achieving our broader objective of making the mortgage market accessible to all and boosting homeownership rates in the kingdom. "murabaha, or cost-plus financing is one of the most important tools in islamic finance that allows a beneficiary to transfer the title deed of the asset in their name “” making it the preferred financing structure, especially in case of home mortgages.“according to sama, around 40% of new mortgages in saudi arabia in 2019 were murabaha. src expects the number to be higher when considering the total number of mortgages."we have some very technical and regulatory challenges around murabaha financing structure