Shalfa Facilities Management, a leading facilities management and operations company in Saudi Arabia, announced a significant strategic move: the renewal of its Sharia-compliant credit facility agreement with Riyad Bank, one of the region's largest financial institutions. This step aims to bolster the company's liquidity and support its future expansion plans amidst the rapid growth of the Saudi economy.
According to the official statement published by the company on the Saudi Stock Exchange website “Tadawul”, the total value of these facilities amounts to SAR 294.7 million, and the financing period extends until April 9, 2028. The company explained that the guarantee provided against this financing is a promissory note issued by it, which reflects the mutual trust between the two parties and the strength of the company’s financial position.
Funding objectives and support for vital projects
This Islamic financing is primarily intended to support the operational processes and projects undertaken by Shelfa Company. The facility will be used to issue the necessary bank guarantees for bidding on new tenders and projects, including initial guarantees, performance guarantees, and advance payment guarantees. Additionally, the financing will cover progress payments for existing projects and site preparation costs, ensuring the smooth execution and timely delivery of work according to the agreed schedules.
The economic context and importance of the agreement
The renewal of this agreement comes at a time when the facilities management sector in Saudi Arabia is experiencing a significant boom, driven by mega-projects launched under Vision 2030, such as NEOM, the Red Sea Project, and Qiddiya. These projects require integrated, high-quality facilities management services, opening up vast opportunities for specialized companies like Shalfa. Securing financing of this magnitude enables the company to compete strongly for these vital projects and enhance its market share.
On the other hand, this collaboration between Shalfa and Riyad Bank reflects the deep relationship between the private sector and financial institutions in the Kingdom, and the pivotal role of banks in financing the growth plans of promising national companies. It also underscores both parties' commitment to Sharia-compliant financing solutions, which form a cornerstone of the Saudi financial system.
Expected impact on the company and the market
This agreement is expected to have a direct and positive impact on Shelfa's performance, providing the company with the financial flexibility needed to expand its operations, invest in modern technologies, and recruit more Saudi talent. More broadly, such partnerships contribute to strengthening and sustaining the facilities management sector, which is integral to infrastructure development and enhancing quality of life—key pillars of Vision 2030.
