Riyadh, Saudi Arabia — Quara Finance has secured a SAR 100 million Sharia-compliant credit facility from Al Rajhi Bank. The 4-year financing is backed by a promissory note, shareholder guarantees, and a 125% receivables assignment. The funds will be used to expand operations and drive sales, supporting the company’s long-term growth strategy.

Sharia-Compliant Finance Structure with Strong Security Mechanisms

The Quara Finance credit facility follows Islamic banking principles. Conservative safeguards, including a promissory note and shareholder guarantees, back it. Additionally, the receivables assignment—set at 125% of the facility value—offers strong collateral coverage for the lender.

Strategic Growth Plans Backed by Al Rajhi Bank Financing

Quara Finance stated that the facility represents a standard commercial arrangement. Over the next four years, the funds will support operational scaling and sales expansion. This reflects the company’s focus on sustainable growth and greater market presence.

Broader Context: Saudi SME Support and Islamic Banking Trends

This loan reflects a broader trend in Saudi Arabia. Sharia-compliant financing continues to support the growth of SMEs. The move aligns with Vision 2030 goals to boost private sector activity and provide ethical, accessible capital for business development.

 

 

THE SAUDI STANDARD’S VIEW: Quara Finance Facility Signals Strength of Sharia-Compliant SME Lending Ecosystem

The SAR 100 million Quara Finance credit facility from Al Rajhi Bank showcases Saudi Arabia’s ability to pair Islamic financial discipline with private sector growth. The four-year agreement, backed by strong security terms, confirms the growing maturity of the Kingdom’s non-bank lenders.

  • The deal underscores Islamic finance’s role in powering enterprise growth. Quara Finance operates within Vision 2030’s framework to empower private sector players.
  • With conservative risk protections in place, including a promissory note and shareholder backing, the agreement highlights sector-wide prudence.
  • Al Rajhi Bank’s involvement adds credibility. As a major Islamic lender, it affirms trust in lending to value-generating parts of the economy.
  • Using the facility to expand and boost sales supports national goals. It helps grow SME participation in GDP, fosters financial inclusion, and diversifies the lending ecosystem.

This is more than a financing deal. It reflects Saudi Arabia’s plan to build a financial system rooted in Islamic values, market discipline, and business innovation. Quara Finance and similar fintech firms are emerging as key drivers of a dynamic and opportunity-rich economy.

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