Bidaya Finance Co. reported a net profit of SAR 15.1 million for the first nine months of 2025, reversing a SAR 6.9 million loss in the same period last year. Revenue rose to SAR 231.5 million, driven by a 15.8% increase in income from financing and investment contracts, primarily Ijarah (lease) contracts, which contributed 61% of total revenue. Profit from investment sales also grew to SAR 16.8 million, while financing expenses declined to SAR 100.6 million. The company’s earnings per share improved to SAR 0.17 from SAR -0.08 in 2024. This turnaround signals improved operational efficiency and stronger demand for Islamic finance products in Saudi Arabia. Investors may view this as a positive sign for the broader Tadawul market, particularly for Islamic finance firms. The reduction in financing costs and growth in non-interest income streams could enhance the company’s long-term profitability. For Saudi investors, the results highlight the resilience of Islamic finance firms amid economic reforms. Key metrics to monitor include quarterly revenue trends, Ijarah contract volumes, and cost management. The company’s ability to sustain this growth in 2026 will depend on macroeconomic conditions and regulatory developments in the Saudi financial sector.
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