Saudi Private Sector Engaging with Sharia Compliant Funding

The use of Sharia compliant loans is making in-roads with the private sector in Saudi Arabia which is favouring such products over sukuk issuances. The use of loans to fund projects allows for faster execution as compared to sukuk issuance which due to their complexity take longer to approve, structure and issue.

Islamic Credit Deal Funded by BTMU

The Dubai branch of Bank of Tokyo-Mitsubishi UFJ announced it will become the first Japanese lender to provide a Sharia compliant loan. The $200 million loan to a unit of Saudi Arabian national mining company Ma’aden was announced yesterday.

The bank expects to see Islamic credit making up about 15% of its Middle East financing in the next three years.

Alinma Jeddah Economic City Secure SR3.6 billion Sharia Compliant Funding

Alinma Jeddah Economic City Fund has secured Shariah-compliant financing of up to SR3.6 billion from Alinma Bank.

The objective of the financing is to provide funding to build and develop the infrastructure for phase one of Jeddah Economic City project and to continue the construction of Jeddah Tower which has now reached its thirty seventh floor, in addition to developing a number of primary real estate projects within the general Master Plan.

The Saudi Capital Markets Authority (CMA) approved, Shariah-compliant real-estate investment fund, established by the fund manager – Alinma Investment Company – with a value of SR8.4 billion.