MESC secures SAR 112.7M Sharia-compliant credit from Emirates Islamic Bank
What's the deal? Middle East Specialised Cables Company (MESC), listed on the Saudi stock exchange under ticker 2370, has obtained SAR 112.7M (roughly $30M) in Sharia-compliant credit facilities from Emirates Islamic Bank.
The facilities are structured in accordance with Islamic finance principles, meaning they avoid interest-based lending in favour of approved structures such as murabaha or ijara.
Why now? Saudi Arabia's industrial and infrastructure sectors are expanding rapidly under the Vision 2030 programme, driving strong demand for specialised cables and related capital goods. Securing fresh credit lines positions MESC to meet rising order volumes and fund working-capital needs as project pipelines grow across the Gulf.
What could go wrong? Taking on new debt adds leverage to the balance sheet at a time when regional interest-rate benchmarks, though structured as profit rates in Islamic finance, remain elevated. If project demand softens or payment cycles lengthen, the additional obligations could weigh on MESC's cash flow.
The signal: The deal underscores the deepening cross-border banking ties between Saudi and UAE financial institutions. It also reflects a broader trend of Gulf-listed industrials tapping Islamic finance to fund growth — a segment that continues to outpace conventional lending in the region.
Read more: argaam.com
