SAUDI ARABIA —Naf Company for Feed for Industry has secured a SAR 10 million Shariah-compliant credit facility from Al Rajhi Bank to finance its working capital needs, according to a company disclosure dated 15 October 2026. The arrangement provides additional funding for the company's operating requirements, with repayment scheduled over two years.
The facility will be settled in 24 monthly instalments, beginning on 25 November 2026 and concluding on 25 October 2028, under the repayment schedule agreed with the lender. In addition to the SAR 10 million principal, the company will pay SAR 1.52 million in financing profits, bringing the disclosed principal and financing-profit obligations to approximately SAR 11.52 million, before any other applicable charges.
The financing is secured by a promissory note valued at SAR 11.52 million. Naf's board chairman, Fayez Idha’ar Talhab Al-Harbi, has also provided a personal guarantee and undertaking covering the company's obligations to Al Rajhi Bank, including principal, financing profits, fees, expenses and other amounts connected with the facility. The disclosure identifies no related-party involvement in the transaction.
Working capital financing can help businesses manage the timing gap between operating expenditure and cash receipts, including payments for supplies, production costs and other routine obligations. For a feed industry company, maintaining sufficient short-term liquidity is relevant to procurement and the continuity of production-related operations. The announcement, however, does not specify how the proceeds will be allocated across individual operating expenses or identify any planned increase in production capacity.
The repayment structure establishes a defined financing commitment through October 2028. The additional financing-profit obligation and guarantees are relevant to assessing the company's future cash requirements and exposure under the agreement. Monthly repayments will need to be accommodated alongside operating costs and other financial obligations throughout the facility's term.
Al Rajhi Bank is a Saudi Arabian banking institution providing Shariah-compliant financial products and services. The facility reflects the role of Islamic banking in providing working capital to businesses through financing arrangements structured in accordance with Shariah principles. For investors and creditors, the key considerations will include the company's ability to generate sufficient operating cash flow to meet instalments, the cost of financing and the implications of the personal guarantee and promissory note for its credit obligations.
