Article details
Al Kuzama Trading Co. has secured a Shariah-compliant credit facility worth SAR 40 million from Emirates NBD. The facility, which has a 36-month term including a three-month grace period, is secured by a SAR 40 million promissory note and personal guarantees from the company's chairman and vice chairman. This financing will be used to fund capital expenditures, working capital requirements, and potential acquisitions, including the acquisition of a company specializing in premium coffee and baked goods under the 24 Coffee brand.
The agreement extends a previous SAR 20 million credit facility signed in 2024, which was fully utilized in 2025. The new facility increases the available credit by SAR 20 million, bringing the total to SAR 40 million. This development reflects the company's growth plans and its efforts to expand its operations in the Saudi market.
The implications of this deal are significant for Al Kuzama, as it provides the company with the necessary funds to pursue its strategic objectives, including expanding its product offerings and increasing its market share. For investors, this news may indicate a positive outlook for the company's future performance, as access to financing is a crucial factor in executing business plans. However, it is essential to monitor the company's progress in utilizing the facility and achieving its growth targets.
