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National Building and Marketing Co. announced that its subsidiary, Ajeej Steel Manufacturing Co., has signed a Shariah-compliant financing agreement worth SAR 75 million with First Abu Dhabi Bank (FAB). The credit facility carries a tenor of five months and is secured by a joint guarantee alongside a promissory note. According to the filing on Tadawul, the primary objective of this short-term funding is to meet the company's working capital requirements, with no related parties involved in the transaction.
Securing liquid credit facilities allows manufacturing firms to stabilize operational cash flows, manage inventory efficiently, and fulfill short-term obligations without diluting equity. For Ajeej Steel Manufacturing, obtaining Islamic financing from a major regional institution like FAB highlights ongoing banking confidence in Saudi corporate credit fundamentals, particularly within the construction and industrial materials supply chains aligned with Saudi Vision 2030 project execution.
Investors and market participants on the Nomu Parallel Market will be watching how efficiently this working capital capitalizes on demand in the Saudi steel sector. Continued expansion of credit facilities across industrial subsidiaries could bolster output capacity, though short-term repayment obligations require effective cash flow management to avoid tightening operational margins over the coming quarters.
