Middle East Specialized Cables Company (MESC), a leading manufacturing company in Saudi Arabia, announced a significant strategic step to strengthen its financial position by renewing a Sharia-compliant banking facility agreement with Emirates NBD Bank for a total value of SAR 150 million. This renewal underscores the mutual trust between the two institutions and reflects MESC's strong credit standing.
In an official statement published on the Saudi Stock Exchange (Tadawul) on Thursday, the company clarified that the renewed financing period extends for two years, ending on July 30, 2026. Misk indicated that the guarantee provided for these facilities is a promissory note covering the full value of the financing, a standard procedure aimed at protecting the rights of both parties and ensuring compliance with the terms of the agreement.
General context and importance of funding
Founded in 1993, Misk is a key player in providing specialized cables for major infrastructure projects in the Kingdom and the region, including the energy, construction, and telecommunications sectors. With the accelerating pace of mega-projects linked to Saudi Vision 2030, securing stable cash flow is becoming vital for industrial companies to meet increasing demand and participate effectively in these projects. Financing is primarily intended to support the company's working capital, which covers daily operational expenses such as raw material purchases, payroll, and inventory management, thus ensuring uninterrupted production.
Expected impact at the local and regional levels
Domestically, this financing will enable Misk to enhance its competitiveness and maintain its readiness to fulfill current and future contracts. The provision for issuing bank guarantees (performance guarantees) is crucial for winning new tenders and contracts, as it provides clients with added confidence in the company's ability to meet its obligations. This reflects the stability of the Saudi industrial sector and its capacity to attract financing from major regional financial institutions such as Emirates NBD.
Regionally, this agreement demonstrates the depth of economic and financial ties between Saudi Arabia and the UAE. It also underscores the confidence of regional banks in the strength of the Saudi economy and the promising investment opportunities it offers, encouraging further capital flows and cross-border investments within the Gulf region.
