Riyadh - Sharikat Mubasher: The Saudi Mortgage Guarantees Services Company (Damanat) signed a collaboration agreement with the US investment giant BlackRock to enhance mortgage investment strategies and funds in Saudi Arabia, according to the company’s statement.

The agreement was signed by Hossam Radwan, CEO of Damanat, and Yazeed Almubarak, Managing Director of BlackRock for the Middle East and CEO of BlackRock Saudi Arabia, in the presence of the Saudi Minister of Municipal, Rural Affairs, and Housing Majed Al Hogail, and President of BlackRock Robert Kapito.

Through this partnership, Damant aims to develop mortgage guarantee products to promote the securities market and attract foreign capital flows. Additionally, it will launch Saudi mortgage-related investment strategies and funds in partnership with BlackRock.

Earlier this year, the US giant announced plans to establish BlackRock Riyadh Investment Management (BRIM) which will be managed by a Riyadh-based investment team. BRIM will encompass investment strategies across a range of asset classes for the Saudi market, including both public and private markets.

CEO Radwan stated that the partnership with BlackRock will allow local and global investors access to quality mortgage-backed fixed-income funds and products, which will enhance financing capacity within the local ecosystem and promote the development of local fixed-income capital markets.

For his part, BlackRock’s Almubarak said that the company aims to elevate the Saudi housing-related capital markets through its partnership with Damanat.

“Securitized mortgage assets have the potential to become an important new asset class that further develops the asset management industry in KSA in line with the goals of Vision 2030, the Financial Sector Development Program, and the Housing Program,” Almubarak added.

It is worth noting that the agreement was concluded on the sidelines of Al Hogail’s official visit to the US which took part from 18 to 22 August.