Mohammed Hadi Al-Rashid & Partners announced the signing of an agreement to obtain Sharia-compliant financing facilities through a Tawarruq structure with Emirates NBD Bank. This move aims to strengthen the company's financial position and support its operations. The partnership reflects the growing confidence of major regional financial institutions in the strength and resilience of the Saudi economy and the promising opportunities it offers.
In an official statement published on the Saudi Stock Exchange (Tadawul) website, the company clarified that the financing amount is SAR 20 million, with a repayment period of eight months. The company indicated that the collateral provided for this facility consists of a promissory note with a total value equivalent to the financing amount. The primary objective of this financing is to support the company's working capital, enabling it to enhance its cash flow, meet the requirements of its current and future projects more efficiently, and contribute effectively to the Kingdom's thriving contracting and construction sector.
Economic context and Vision 2030
This funding comes at a time when the Saudi contracting sector is experiencing unprecedented growth, driven by the mega-projects launched by the Kingdom as part of Vision 2030. The Vision aims to diversify the economy and reduce reliance on oil by investing in vital sectors such as infrastructure, tourism, and entertainment. National contracting companies, like Al-Rasheed, are key partners in implementing these ambitious projects, making access to sustainable financing crucial for their continued operation and expansion.
The importance of financing and its expected impact
Domestically, this financing is expected to enhance Al-Rashid's competitiveness, enabling it to participate in tenders for new projects, create jobs, and support the local supply chain. Regionally, this agreement between a Saudi company and a leading Emirati bank like Emirates NBD strengthens economic integration among the GCC countries and highlights the attractiveness of the Saudi market for regional investments and banking financing.
The presence of Emirates NBD, one of the largest banks in the Middle East, North Africa, and Turkey, as a financial partner lends added confidence to Al-Rashid's operational and strategic plans. This collaboration also reflects the bank's expansion strategy in the Saudi market, one of the most important markets in the region, and its desire to support companies that play a pivotal role in achieving national development goals.
