SHL Finance signs SAR 100M credit deal with Quara Finance

SHL Finance Co. signed a Sharia-compliant credit facility and financing guarantees agreement with Quara Finance Co., under which it will provide up to SAR 100 million in financing to support Quara’s customer lending activities.

In a statement to Tadawul, SHL said the financing constitutes a related-party transaction and exceeds 1% of the company’s total revenue, based on audited financials for the year ended Dec. 31, 2024.

SHL Chairman Yousef Al-Shalash is considered a related party, as he owns 5.6% of SHL shares and indirectly holds 30.39% of Quara Finance through his 95% stake in Al-Mawarid Al-Ula Real Estate Co.

The indirect financial interest expected to accrue to Al-Shalash stems from Quara Finance’s access to funding through this facility.

SHL stressed that the deal was conducted on commercial terms in the ordinary course of business, aligned with its SME financing strategy, and secured by adequate guarantees and collateral in line with its credit policy.

Quara Finance said the three-year facility is backed by a promissory note for the full amount and a transfer of receivables covering 120% of the outstanding balance.