Waja Company, listed on the Saudi Stock Exchange, announced the renewal of its Sharia-compliant credit facility agreement with Al Rajhi Bank, one of the world's largest Islamic banks. According to the official statement published on the Saudi Stock Exchange (Tadawul), the facility is valued at SAR 19 million and has a one-year term.
Background and importance of the agreement
This renewal is a strategic move by Waja to enhance its financial liquidity and support its operational and capital expenditures. Credit facilities are a lifeline for companies, providing them with the necessary flexibility to manage cash flow and finance new projects. In Waja's case, these facilities are specifically intended to finance the issuance of various letters of guarantee and facilitate deferred payment sales, both of which are vital in sectors such as contracting and construction, in which the company operates.
The economic context and the role of financial institutions
This agreement reflects the mutual trust between the corporate sector and leading financial institutions in the Kingdom of Saudi Arabia. On the one hand, Waja's securing of this financing with only a promissory note as collateral demonstrates its financial strength and solid creditworthiness. On the other hand, through this step, Al Rajhi Bank reaffirms its pivotal role in supporting national companies and empowering the private sector, which aligns with the strategic objectives of Saudi Vision 2030 that seeks to diversify the economy and enhance the contribution of local companies to the GDP.
Islamic finance dimensions
The fact that the facilities comply with Islamic Sharia principles adds an important dimension to the deal, reflecting both parties' commitment to operating within financial frameworks that are widely accepted in the region. Islamic finance, based on the principles of profit and loss sharing and the avoidance of interest (riba), is a cornerstone of the Saudi financial system and contributes to providing innovative and ethical financing solutions that meet the growing needs of the market.
Expected impact on the company and the market
These facilities are expected to support Waja's expansion plans and enhance its competitiveness by enabling it to enter into new projects requiring bank guarantees. More broadly, such deals are a positive indicator of economic health, demonstrating the continued flow of financing and investment in the Saudi market, which strengthens the confidence of local and international investors in the Kingdom's business environment.
