Amlak renews SAR 1.06B credit facility with Saudi Investment Bank
What's the deal? Amlak International Finance Co. has renewed a Shariah-compliant credit facility worth SAR 1.06 billion ($283M) with Saudi Investment Bank (SAIB). The facility runs until January 8, 2028, and is designed to support Amlak's operations and boost its capacity to finance customers.
Guarantees include the assignment of receivables to SAIB and a promissory note in its favour.
Why now? The renewal keeps Amlak's funding pipeline intact as Saudi Arabia's real estate finance sector grows under Vision 2030. Maintaining a large credit line lets the company continue extending financing to customers without interruption.
What could go wrong? SAIB is a major shareholder in Amlak, which creates a related-party dynamic. Several Amlak board members hold indirect interests through SAIB roles — including Majed Fakeeh, SAIB's chief corporate banking officer; Khalid Al-Rayes, chief executive of SAIB subsidiary Alistithmar Capital; and Ala Asali, SAIB's chief cyber security officer who sits on Amlak's risk committee.
Amlak said the agreement was concluded under normal business terms with no preferential conditions.
The signal: Saudi finance companies are locking in large, long-dated credit facilities to meet rising demand for housing and real estate lending — a core pillar of the kingdom's economic diversification push. Related-party financing arrangements remain common in the market, but disclosure standards on Tadawul are keeping them transparent.
Read more: argaam.com
