Osool & Bakheet Investment Company, a leading asset management and financial services firm in Saudi Arabia, announced the renewal of a Sharia-compliant credit facility agreement with Banque Saudi Fransi, with a total value of SAR 50 million. This renewal reinforces the strategic partnership between the two financial institutions and underscores the mutual trust and strong relationship between them.
Details of the agreement and its strategic objectives
According to a statement issued by the company and published on the Saudi Stock Exchange (Tadawul) website, the financing period extends until August 23, 2027 (corresponding to 23 August 1448 AH). This facility is primarily intended to finance Murabaha transactions and/or the issuance of letters of guarantee related to Islamic payment, thus providing the company with flexible liquidity to support its operations and future investment plans. The company clarified that the collateral provided for this financing consists of a promissory note issued by it covering the full value of the facility, and confirmed that there are no related parties involved in this agreement.
The economic context and the importance of partnership
This move is a positive indicator of the dynamism of the Saudi financial sector and its ability to provide innovative financing solutions that support the growth of national companies. Osool & Bakheet Investment Company, established in 2005, plays a pivotal role in the Saudi financial market by offering a wide range of investment products and managing funds and portfolios. For its part, Banque Saudi Fransi, established in 1977, is a pillar of the Kingdom's banking sector and possesses extensive experience in corporate finance and providing integrated banking services, making it a trusted strategic partner.
Expected impact on the local market
Renewing such agreements not only benefits both parties but also reinforces confidence in the Saudi business environment as a whole. Domestically, these facilities enable Osool & Bakheet to expand its investment activities and participate more effectively in development projects aligned with the goals of Vision 2030, which aims to diversify the economy and strengthen the role of the private sector. The demand for Islamic finance products such as Tawarruq reflects the maturity and development of the Islamic banking sector in the Kingdom, which has become a model to be emulated regionally and internationally. This collaboration demonstrates the stability and strength of Saudi financial institutions and their ability to withstand global economic challenges, thus enhancing the attractiveness of the Saudi market to both local and foreign investors.
