Al Rasheed lands SAR 100M SAB facility, more than doubling its financing
What's the deal? Mohammed Hadi Al Rasheed & Partners Company has secured approval from Saudi Awwal BankDealroom has a profile for this one. Try Dealroom → (SAB) to increase its Sharia-compliant credit facilities by SAR 100 million. The agreement, finalised on July 28, 2026, lifts the company's total financing from SAR 72.39 million to SAR 172.39 million.
What's the endgame? The company earmarked the new funds for strategic expansion and operational support. Of the SAR 100 million, SAR 40 million will go to asset financing, with the remaining SAR 60 million designated to complete the acquisition of Taif Company.
Why now? The raise marks a sharp step-up from the company's previous arrangement. In August 2025, Al Rasheed secured SAR 72.39 million over five years, backed by a SAR 65 million promissory note — a facility now more than doubled in under a year.
The terms: As security for the expanded facility and the remaining balance of prior financing, the company has provided a promissory note valued at SAR 158.11 million. Management confirmed there are no related parties involved in the transaction.
The signal: The deal underscores how Saudi companies are leaning on Sharia-compliant debt to fund growth and acquisitions rather than diluting equity. For SAB, backing the expansion — and a bolt-on acquisition — signals continued lender appetite for financing local corporate consolidation.
Read more: Mubasher
Image credit: UNCTAD
