Zahrat Al Waha signs 50 million riyal Sharia-compliant facility with Al Rajhi

Summary

• Zahrat Al Waha for Trading signed a 50 million riyal credit facility with Al Rajhi Bank.
• Funding runs from 8 November 2026 to 31 August 2027, secured by a promissory note.
• The money targets raw-material letters of credit and working capital, core operating liquidity needs.

The latest

Zahrat Al Waha for Trading has secured a Sharia-compliant credit facility worth 50 million riyals from Al Rajhi Bank, under an agreement signed Monday, according to a company filing on Tadawul. The company said the financing will cover documentary credits for raw-material purchases and working capital, with a promissory note covering the full facility amount offered as security.

Details

• The size: The facility is valued at 50 million riyals, the company said in its Tadawul disclosure. The agreement is structured in line with Sharia controls, placing it within the Islamic financing products that dominate corporate lending at Al Rajhi Bank, the kingdom's largest Islamic lender by assets.
• The timeline: The financing period begins on 8 November 2026 and runs to 31 August 2027, according to the filing — a window of just under 10 months. The company did not disclose a repayment schedule within that period, nor the pricing or profit rate attached to the facility.
• The security: The sole guarantee presented against the financing is a promissory note issued by the company for the total value of the facility, Zahrat Al Waha said. No asset pledge, corporate guarantee or third-party collateral was listed in the disclosure.
• The purpose: Proceeds are earmarked for two uses: opening documentary credits to purchase raw materials, and financing working capital. Both are operating-cycle needs rather than capital expenditure, pointing to input procurement and short-term liquidity rather than expansion or new production capacity.
• Related parties: The company stated there are no related parties to the transaction — a required disclosure point under Tadawul rules, confirming the agreement is a conventional arm's-length arrangement between the listed firm and the bank, with no shareholder or board interest involved.
• The counterparty: Al Rajhi Bank is the lender. Saudi banks have continued extending operating-liquidity lines to smaller and mid-cap listed companies, and facilities of this scale typically serve firms whose working-capital needs move with commodity input costs rather than long-term project financing.
• The disclosure: The announcement was made through the Saudi Exchange's mandatory disclosure channel, the standard route for listed companies reporting material financing agreements. The company did not specify any financial impact on its results or the period in which that impact would appear.

Background

Zahrat Al Waha for Trading is a Saudi listed company that discloses material agreements through Tadawul, the Saudi Exchange, where financing arrangements of this size must be announced to shareholders when signed.

Between the lines

The structure points to a short-cycle liquidity need rather than growth financing. A promissory note as the only security, a sub-10-month term, and proceeds tied to documentary credits and working capital together describe a company managing the gap between paying for raw materials and collecting on sales — not funding new capacity.

What's next

Watch whether Zahrat Al Waha discloses the facility's financial impact in upcoming Tadawul filings, and whether utilization begins when the financing window opens on 8 November 2026.

Source: Argaam, Tadawul