Dar Albalad lands SAR 20M Shariah-compliant facility from SNB
What's the deal? Dar Al Balad Business Solutions CompanyDealroom has a profile for this one. Try Dealroom → signed a SAR 20 million ($5.33 million) Shariah-compliant credit facility with the Saudi National BankDealroom has a profile for this one. Try Dealroom → (SNB).
The financing will fund bid and performance guarantee letters and support working capital, the company said in a statement to TadawulDealroom has a profile for this one. Try Dealroom →.
Dar Albalad provided promissory notes, a joint and several guarantee, and an assignment of proceeds from certain projects as collateral.
Its major shareholder, Dar Al Balad Commercial Co., also supplied a joint and several guarantee to back the facility.
Why now? The company secured the facility on June 25. It will remain available until April 30, 2027.
The timing gives Dar Albalad nearly two years of access to capital, useful for bidding on projects that require upfront guarantees.
What could go wrong? The financing leans on multiple layers of collateral, including project proceeds and shareholder guarantees.
If projects underperform or proceeds fall short, the company and its backers carry the risk.
The signal: Dar Albalad, a breakout-stage managed IT services and IoT solutions provider, is leaning on debt rather than equity to fund its project pipeline, tapping the Saudi National Bank to back the bid and performance guarantees that such contracts require. The choice reflects how Saudi tech firms are increasingly using Shariah-compliant facilities from local banks to scale without diluting ownership.
Read more: Argaam
Image credit: Generated with Gemini
