Saudi Industrial Development Company Secures Sharia-Compliant Financing for Subsidiary

Strategic Insights -

The Saudi Industrial Development Company's (SIDC) subsidiary, Emmdad Logistic Services Company, has secured a significant Islamic Sharia-compliant financing agreement with the Social Development Bank. This strategic move aims to bolster Emmdad Logistic Services Company's capital expansions, marking a significant step towards its growth and development. The agreement was formalized on June 18, 2025, following a five-year term with a total value of 10.00 million Saudi Riyals.

Key Takeaways:

  • Emmdad Logistic Services Company, a subsidiary of the Saudi Industrial Development Company (SIDC), has entered into a Sharia-compliant financing agreement with the Social Development Bank for a total value of 10.00 million Saudi Riyals.
  • The financing agreement spans a duration of five years, aiming to support the capital expansions of Emmdad Logistic Services Company.
  • The agreement includes a promissory note for the full value of the financing, as well as payment and performance guarantees from the partners in Emmdad Logistic Services Company.
  • The partners in Emmdad Logistic Services Company include Global Marketing Company for Sleeping System Ltd. (subsidiary company "Sleep High") and Road Storm Trading and Contracting Co.
  • The financing agreement was executed on May 15, 2025, with the legal procedures, execution of signatures, and receipt of the final version of the agreement completed on June 18, 2025.
  • The agreement was announced on the Saudi Exchange, with the Capital Market Authority and Saudi Exchange disclaiming any responsibility for the contents of the disclosure.

Statistics:

  • 10.00 million Saudi Riyals: The total value of the Sharia-compliant financing agreement.
  • 5 years: The duration of the financing agreement.
  • 18 Jun 2025: The date the financing agreement was formalized.
  • 1446-12-22: The Islamic calendar date corresponding to June 18, 2025.
  • 10.00 million SAR: The value of the promissory note for the full financing.
  • 5 years: The duration of the financing.

Sources:

  • Saudi Exchange, "Deal Announcement: Emmdad Logistic Services Company and Social Development Bank"
  • Capital Market Authority (Saudi Arabia), "Disclosure Requirements for Listed Companies"