Saudi-listed fintech firm Mufeed Co has successfully secured SAR 17.5 million (approximately $4.6 million) in Shariah-compliant banking facilities to fuel its operational growth and strategic expansion initiatives. The financing was obtained from Saudi Awwal Bank (SAB) and announced in a disclosure to the Tadawul exchange.
This 12-month facility is earmarked to support the company’s near-term growth, reinforcing its commitment to scaling its business in the Kingdom.
Fueling Growth Aligned With Vision 2030
Mufeed has framed the new funding as a key component of its strategy to scale sustainably while contributing to the Kingdom’s national economic goals. The company stated that the financing aligns with Saudi Arabia’s Vision 2030, which prioritizes private-sector growth and the diversification of the economy away from oil.
For companies listed on the Nomu parallel market, access to structured, Shariah-compliant financing is a critical enabler for disciplined expansion, especially within the current landscape of tighter capital markets.
Details of the Financing Facility
The agreement with SAB is structured as a 12-month facility, suggesting its primary use will be for working capital and immediate expansion needs rather than long-term capital investments. This type of financing is often utilized to scale operations, execute on new projects, or optimize the balance sheet for the next growth phase.
As collateral, Mufeed provided a promissory note valued at the full SAR 17.5 million, a standard practice for corporate financing within Saudi Arabia’s Shariah-compliant framework. The company also confirmed that no related parties were involved in the transaction.
Navigating Growth on the Nomu Market
Mufeed’s move to secure bank funding reflects a growing trend among companies listed on Nomu, the Saudi Exchange’s parallel market. While Nomu provides a vital pathway to public capital for growth-stage companies, many are increasingly turning to debt facilities to fund expansion without diluting existing shareholder equity.
This trend is complemented by a rising appetite from banks to provide Shariah-compliant financing to listed SMEs, which benefit from enhanced governance and transparent disclosure requirements. This synergy is helping to deepen the capital available to Saudi Arabia’s corporate ecosystem.
About Mufeed
Mufeed Co. is a Saudi-based company that provides a range of financial and administrative solutions. Listed on the Nomu parallel market, the company focuses on delivering services that support operational efficiency and growth for its clients, aligning its strategy with the economic development goals of Saudi Arabia’s Vision 2030.
Source: Arab Founders
