Riyadh – Mubasher: Sport Clubs Company has officially announced the acquisition of a Shariah-compliant financing facility totaling SAR 70 million.
The credit facility, structured as a Tawarruq arrangement, was secured through the Saudi Awwal Bank (SAB) to support the company’s strategic expansion initiatives.
This financial move underscores the company's commitment to scaling its operations within the Kingdom’s growing fitness and sports sector through structured Islamic banking products.
According to the regulatory filing released by the company, the financing agreement was formalized on 24 June 2026.
The terms of the financing specify a total duration of five years. A notable feature of the agreement is the inclusion of a one-year grace period, which applies to the first year of the facility’s term.
This grace period is intended to provide the company with initial cash flow flexibility as it deploys the capital into new projects before the commencement of principal repayment obligations.
To secure the credit facility, Sport Clubs has provided a promissory note covering the full value of the financing.
This is a standard collateral practice in Saudi corporate lending, ensuring the bank’s interests are protected while allowing the company to access necessary capital without the immediate pledging of physical assets.
The primary objective behind securing this SAR 70 million facility is the funding of capital expenditures and investment costs related to the company’s future expansion plans.
Specifically, the management intends to utilize these funds to finance the construction and development of new sports clubs and fitness centers.
This aligns with the company’s broader strategy to increase its market footprint and meet the rising demand for professional athletic facilities across various regions of the Kingdom.
