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RIYADH: The Saudi Real Estate Refinance Co., a subsidiary of the Public Investment Fund, has launched the Kingdom’s first residential mortgage-backed securities.

The new asset class is designed to boost liquidity in the housing finance sector and broaden investment opportunities by packaging residential mortgage loans into tradeable securities.

“The launch of the Kingdom’s first RMBS transaction marks a strategic step toward developing ��������’s real estate finance market and enhancing its appeal to both domestic and foreign investors,” said Majid Al-Hogail, minister of municipalities and housing and chairman of SRC’s board.

“This initiative provides innovative financing instruments that align with the objectives of Saudi Vision 2030 to raise homeownership rates and enable more Saudi families to own suitable homes, advancing sustainable economic growth and quality of life,” he added.

Executed under a strong regulatory framework, the transaction highlights the Kingdom’s readiness to adopt sophisticated financial instruments, further reinforcing investor confidence.

The move is part of SRC’s mandate to deepen capital markets and support Vision 2030 goals by diversifying the financial sector and expanding homeownership.

Earlier this year, the company completed a $2 billion international sukuk issuance, part of a $5 billion trust certificate program to enhance liquidity and funding sources for housing.

In 2024, SRC signed a memorandum of understanding with global investment firm King Street to explore secondary real estate financing solutions. It also established an international trust certificate issuance platform to attract overseas investors.

SRC CEO Majeed Al-Abduljabbar described the RMBS launch as “a qualitative leap in the development of the Kingdom’s secondary mortgage market,” crediting the achievement to coordination with “the Saudi Central Bank, the Capital Market Authority, the Financial Sector Development Program, the Housing Program, and the Public Investment Fund Program.”

According to Al-Abduljabbar, the securitization will strengthen liquidity, diversify the investor base, and help financial institutions manage capital and risk more effectively.

Established in 2017 and licensed by the Saudi Central Bank, SRC plays a central role in enabling affordable housing finance solutions in line with Vision 2030 targets.

RIYADH: ��������’s non-oil exports jumped 17.8 percent in the second quarter of 2025, offsetting weaker oil sales and highlighting the Kingdom’s accelerating diversification drive, official data showed. 

The increase included a 46.2 percent rise in re-exports, while national non-oil exports excluding re-exports climbed 5.6 percent, according to the General Authority for Statistics.  

The data highlight the rising importance of non-oil activity in ��������’s economy, with Vision 2030 driving industrial expansion, logistics, and giga-projects that boost demand for technology and capital goods. 

In its latest report, GASTAT stated: “The ratio of non-oil exports (including re-exports) to imports increased to 37.3% in Q2 2025 from 35.8% in Q2 2024. This is attributed to the increase in non-oil exports compared to imports of 17.8% and 13.1% respectively, during the same period.” 

A mixed picture 

While non-oil exports strengthened, ��������’s overall trade performance showed mixed signals across the quarter and month. 

In the second quarter of 2025, a 15.8 percent drop in oil exports dragged total merchandise exports down by 7.3 percent year on year. Combined with a 13.1 percent rise in imports, this pushed the merchandise trade balance surplus down by 56.2 percent compared to the same period in 2024. Oil’s share of the Kingdom’s total exports slipped from 74.7 percent to 67.9 percent in the quarter, reflecting a gradual rebalancing of the export basket. 

By contrast, the monthly data for June showed a more positive trend. Non-oil exports surged by 22.1 percent, outpacing a modest 1.7 percent increase in imports. This drove the trade balance surplus higher by 10.6 percent year on year.  

Even with oil exports falling 2.5 percent, the non-oil momentum was enough to keep overall merchandise exports in positive territory, up 3.7 percent. Oil’s share of exports narrowed further, dropping from 74.7 percent in June 2024 to 70.2 percent in June 2025.  

Key drivers 

GASTAT’s analysis of export commodities revealed the engines of this non-oil growth. Chemical products remained the most significant category, constituting 23 percent of total non-oil exports and growing by 5.8 percent. 

The machinery, electrical equipment, and parts sector recorded the sharpest growth, rising 120.8 percent year on year and accounting for 21.7 percent of total non-oil exports. This growth points to rapid development in advanced manufacturing and technology-related industries within the Kingdom.  

The latest official data showed ��������’s Industrial Production Index increasing by 7.9 percent year on year in June, driven by a sharp rebound in manufacturing. 

Conversely, the same machinery and electrical equipment category was also the most imported goods, making up 28.9 percent of total imports and rising by 28.7 percent. 

This suggests the growth is being driven by both domestic production and increased demand for technology and capital goods, essential for ongoing giga-projects and industrial expansion.  

Transportation equipment and parts were the second most imported goods, rising by 12.1 percent. 

Trading partners  

China cemented its position as ��������’s primary trading partner. It was the top destination for the Kingdom’s exports, absorbing 14.2 percent of the total, and the leading source of imports, accounting for 27.4 percent of all goods entering ��������.  

The UAE was the second-largest export market at 10 percent, followed by India at 8.8 percent. The US was the second-largest source of imports, followed by the UAE.   

Trade with the top ten partners for both exports and imports accounted for approximately two-thirds of the Kingdom’s total trade flows.   

Logistically, the King Abdulaziz Sea Port in Dammam was the nation’s busiest gateway, handling 26.2 percent of all imports. It was followed by Jeddah Islamic Sea Port and King Khalid International Airport in Riyadh.    

Together, the top five ports of entry facilitated 78.4 percent of all merchandise imports, demonstrating the critical role of the Kingdom’s infrastructure in facilitating global trade.   

Earlier in May, a separate report released by GASTAT revealed that the Kingdom’s gross domestic product grew 2.7 percent year on year in the first quarter, driven by strong non-oil activity.      

Commenting on the GDP figures, ��������’s Minister of Economy and Planning, Faisal Al-Ibrahim, who also chairs GASTAT’s board, said at the time that the contribution of non-oil activities to the Kingdom’s economic output reached 53.2 percent — an increase of 5.7 percent from previous estimates.   

June upswing 

GASTAT’s product-level data for June showed stronger growth in some key sectors compared to the quarterly average. Machinery, electrical equipment, and parts, which accounted for 23.3 percent of non-oil exports, rose 168 percent year on year.   

Chemical products, which remained the largest category at 24.5 percent of non-oil exports, grew by 8.5 percent.   

On the import side in June, the top category remained machinery, electrical equipment, and parts, making 30.6 percent of imports, up 29.0 percent, while transportation equipment, and parts saw a decrease of 13.2 percent. 

China remained the top destination in June, receiving 15.5 percent of ��������’s total exports, while the UAE and India followed at 9.1 percent each. 

The top five customs ports for imports in June were led by King Abdulaziz Sea Port in Dammam and Jeddah Islamic Sea Port, which together handled nearly half of all goods entering the country. 

GASTAT noted that the data is compiled from records provided by the Zakat, Tax and Customs Authority and the Ministry of Energy, classified according to the international Harmonized System.