Halwani Bros., a leading food company in Saudi Arabia, announced the signing of a Sharia-compliant banking facilities agreement with Emirates NBD. According to the official statement published by the company on the Saudi Stock Exchange (Tadawul), the financing is valued at SAR 100 million, representing a strategic step to strengthen its financial position and support its operations.
Details of the agreement and its objectives
The company explained that the financing period is one year, with the possibility of renewal according to the terms and conditions agreed upon by both parties. This financing is primarily intended to support the company's working capital, meaning providing the necessary liquidity to cover daily operating expenses such as purchasing raw materials, paying employee salaries, and managing inventory. Halwani Brothers indicated that the collateral provided for this facility is a promissory note covering the total financing amount, a standard procedure in such agreements to guarantee the rights of the lending entity.
Historical context and the company's importance in the market
Halwani Brothers is one of the oldest companies in the region, dating back to 1850. Over the decades, the company has successfully built a strong and trusted brand, offering a wide range of food products including halva, jams, and processed meat products. Thanks to its high quality and diverse product range, the company has achieved a prominent position not only in the Saudi market but also in many markets across the Middle East and North Africa, particularly in Egypt, where it has factories and an extensive distribution network.
Expected impact of financing on the company and the economy
This agreement is expected to have a multifaceted positive impact. Domestically, the additional liquidity will enable Halwani Bros. to enhance its competitiveness, improve the efficiency of its production operations, and potentially expand into new product lines or develop existing products to meet evolving consumer demands. This financing also reflects the confidence of major financial institutions, such as Emirates NBD, in the company's robust operating model and future growth prospects.
Regionally, strengthening the financial position of a company the size of Halwani Brothers contributes to the stability of the food industry, a vital and strategic sector for achieving food security. On a broader economic level, this move aligns with the goals of the Kingdom’s Vision 2030, which aims to empower the private sector and diversify the economic base away from oil. Providing financing to major national companies supports their growth and job creation capabilities, thereby strengthening the national economy as a whole.
