Zahrat Al Waha Trading Company, one of the leading companies in the plastics industry sector in the Kingdom and listed on the Saudi Stock Exchange, announced a new strategic step to strengthen its financial position, as it renewed a Sharia-compliant credit facility agreement with the Saudi Investment Bank.
In an official statement published on the Saudi Stock Exchange (Tadawul), the company clarified that the financing amount is SAR 120 million, and the agreement's validity extends from the date of the announcement until September 30 of next year. Zahrat Al Waha indicated that the primary objective of this facility is to finance working capital, specifically the purchase and import of raw materials necessary for its manufacturing operations, in addition to financing its general investments, thus supporting its expansion plans and enhancing its competitiveness in the market.
General context and importance of financing for the industrial sector
Zahrat Al Waha Company is a key player in the water and beverage packaging market in Saudi Arabia and the region, specializing in the production of plastic preforms and plastic caps. This financing is a strategic step to ensure a continuous supply of raw materials, especially given the volatility of global commodity markets, enabling the company to meet the growing demand for its products from major water and beverage bottling companies. Securing ongoing financing is a lifeline for industrial companies that rely on imported raw materials, providing them with greater flexibility in inventory management and production planning.
Expected impact and its role in supporting Vision 2030
This renewal is particularly significant as it provides the company with essential cash flow to enhance its operations and safeguard its supply chain. Domestically, this collaboration contributes to the stability of a vital industrial sector and strengthens the ability of national companies to grow and compete, aligning with the goals of Saudi Vision 2030, which aims to diversify the economic base and increase local content in industry. It is also viewed as a positive indicator for investors in the Saudi stock market, demonstrating the company's ability to secure the necessary financing for its future plans with robust guarantees, namely a promissory note for the full value of the facility and a pledge of shares in the company's investment portfolio. Thus, this financing represents more than just a financial transaction; it is a strategic partnership that supports the sustainable growth of Zahrat Al Waha and underscores the pivotal role of the Saudi banking sector in empowering national industry.
