Saudi Arabia has appointed BlackRock, the world’s largest asset management firm, to help develop its mortgage-backed securities market, aiming to make homeownership more accessible for its citizens, Invest-Gate reports.

BlackRock CEO Larry Fink stated that Saudi Arabia hopes to establish a secondary market for mortgage loans, enabling banks to offer lower interest rates and improve the affordability of homeownership.

Also, earlier this year, the American investment firm signed an agreement with the Saudi Real Estate Refinance Company to enhance the country’s mortgage financing market.

The partnership will explore ways to diversify funding sources through fixed-income markets.

Moreover, in its latest financial update, BlackRock reported an increase in assets under management, reaching $11.48 tn in Q3 2024, up from $9.1 tn in the same period last year. The firm also posted a net profit of $1.63 bn for the quarter.

Notably, BlackRock launched BlackRock Riyadh Investment Management (BRIM), which will handle investment strategies across various asset classes within the Saudi market, covering both public and private sectors, managed by a dedicated team based in Riyadh.