Riyadh - Mubasher: Amlak International Finance Company announced the formal execution of a strategic agreement with the Saudi National Bank (SNB) for the sale of a consumer finance contract portfolio.
The initial transaction, valued at SAR 133.66 million, was finalized on 30 June 2026, and is accompanied by a secondary agreement for the ongoing servicing of the sold contracts. The arrangement includes provisions for future expansions, allowing for a total potential transaction value of up to SAR 500 million.
The agreement marks a significant financial move for Amlak International as it seeks to optimize its asset management.
Under the terms of the deal, the company has transferred a specific portfolio of consumer finance contracts to the SNB.
To ensure operational continuity and maintain customer relations, Amlak has also entered into a service agreement with SNB. This allows Amlak to continue managing and servicing the contracts on behalf of the bank, despite the transfer of ownership of the underlying financial assets.
Beyond the initial sale of SAR 133.66 million, the contract provides Amlak International with the right to sell additional consumer finance portfolios to SNB. These future sales will be conducted under the same established terms and conditions, up to a maximum aggregate limit of SAR 500 million.
This framework offers the company a scalable mechanism to manage its balance sheet and respond to market demands over the duration of the agreement.
The strategic rationale behind this divestment focuses on the enhancement of the company’s liquidity position. By converting these finance receivables into immediate cash proceeds, Amlak International aims to diversify its funding sources and strengthen its financial standing.
The company has clarified that the proceeds from the sale will be utilized to support its regular business activities and core operational initiatives, providing the necessary capital to fund ongoing growth.
Regarding the financial impact, Amlak International expects the positive results of this transaction to be recognized in its financial results for the second quarter (Q2) of 2026.
The company also emphasized that the entire agreement has been structured in strict accordance with the provisions of Islamic Sharia. Furthermore, the transaction complies with all relevant Saudi Arabian financial regulations and instructions.
On 14 May, the company extended its Sharia-compliant facility agreement with Saudi Investment Bank (SAIB) at a value of SAR 1.06 billion.
