Riyadh, Saudi Arabia — Quara Finance Company has secured a SAR 100 million Shariah-compliant loan from Sahl Finance. The agreement aims to support operational expansion and strengthen the firm’s position in the Saudi financial sector.
Quara Finance Loan Structure and Strategic Purpose
Quara Finance disclosed the loan on June 17. The three-year facility is backed by a promissory note matching the full amount. It also includes an assignment of receivables covering 120% of the outstanding balance. This credit facility supports the company’s long-term strategy to improve liquidity and expand its lending operations.
Related-Party Transaction and Regulatory Compliance
Sahl Finance, the lender, is a related-party entity. Yousef bin Abdullah Al-Shelash holds shares in both companies—directly in Sahl Finance and indirectly in Quara Finance via Al-Mawarid Al-Ula Company.
Quara Finance stated that the loan follows standard commercial terms. It meets all regulatory requirements for related-party transactions and reflects sound risk management. The deal also shows how internal financial relationships can deliver competitive funding without violating governance norms.
The Saudi Standard’s View: Strengthening Transparency in Related-Party Lending
Related-party transactions often raise governance concerns. Yet, this case highlights positive steps in disclosure and internal controls. By confirming that the deal followed market terms, Quara Finance signals awareness of investor concerns and a willingness to uphold commercial discipline—even within affiliated structures.
Saudi Arabia’s Capital Market Authority and Vision 2030 reforms have raised expectations for corporate transparency. This example underscores the importance of documented oversight, independent audits, and board-level accountability when related entities transact. Transparent governance is no longer optional—it is central to sustainable capital access.
More broadly, Shariah-compliant finance continues to grow in Saudi Arabia’s non-bank sector. These instruments are now integral to corporate funding strategies, valued for their ethical basis and flexibility. However, as adoption accelerates, scrutiny will deepen. Firms must ensure that Shariah adherence is not just a formal label but part of a broader commitment to integrity.
In an evolving financial landscape, transparency builds lasting trust. Companies that prioritize clear disclosures, fair dealing, and regulatory alignment will reinforce investor confidence. They also help shape a more resilient, credible, and accountable Saudi financial system—one that balances innovation with responsibility.
