Riyadh – Mubasher: Jabal Omar Development Company, a major player in the Saudi Arabian real estate sector, has officially entered into a Sharia-compliant Murabaha financing agreement valued at SAR 2 billion with the Saudi National Bank (SNB).
The facility is strategically designed to refinance the company’s existing debt obligations under more favorable terms, according to a bourse filing.
This Sharia-aligned funding further marks a significant step in the developer’s efforts to optimize its capital structure and ensure long-term financial stability.
This facility carries a substantial tenure of 15 years, offering the company a long-term horizon to manage its financial commitments.
According to the disclosure, the primary objective of securing this new financing is to refinance current outstanding facilities. By transitioning to this new arrangement, the company aims to benefit from improved terms and conditions compared to its previous debt obligations.
From an operational standpoint, the management of Jabal Omar expects the new Murabaha facility to contribute significantly to the sustainability of its cash flows. By restructuring its debt, the company intends to enhance its repayment schedule, thereby providing greater flexibility for its ongoing and future development projects in the vicinity of the Grand Mosque in Makkah.
To secure the financing, the company has provided a real estate mortgage on properties within the Jabal Omar project as collateral to SNB.
The transaction involves a related party interest, which has been disclosed in accordance with Saudi Arabian regulatory requirements. Saeed Al Ghamdi serves as the Chairman of the Board of Directors for both Jabal Omar and SNB. Due to this indirect interest, the company has confirmed that the transaction will be presented to the upcoming General Assembly for formal review and licensing.
This move ensures transparency and adherence to corporate governance standards governing transactions with related parties.
The financing was formally obtained on 17 June 2026, while this forward-looking arrangement underscores the company's proactive approach to managing its balance sheet and securing its financial position well in advance of future requirements.
The Jabal Omar project remains one of the most significant urban regeneration developments in the Kingdom of Saudi Arabia, given its proximity to the Holy Mosque.
The successful negotiation of this SAR 2 billion facility with the country’s largest commercial lender reflects the continued support of the domestic banking sector for large-scale strategic real estate developments that align with the Kingdom’s broader economic objectives.
The refinancing move is expected to provide the developer with a more streamlined debt profile, reducing immediate liquidity pressures and allowing for a more focused execution of its operational strategy.
As the company moves toward the effective date of the financing in 2026, the focus will remain on maintaining the momentum of its development phases while upholding rigorous financial discipline.
In the first quarter (Q1) of 2026, Jabal Omar generates SAR 739.17 million in revenue while its net profit hit SAR 116.99 million.
