Saudi building company inks 18 mln riyals Islamic financing for construction tech factory

A subsidiary of Saudi Arabian building materials company Al Kathiri Holding has signed an Islamic financing facility worth 18 million riyals ($4.8 million).

The facility signed by Alian Industry Co with Riyad Bank is for a financing period of 540 days, Al Kathiri said in a filing with the Saudi stock exchange on Monday (Dec 16).  

The financing will go towards completing a construction technology factory in Sudair City, said the company.

Alian Industry Co is building a factory for the production of reinforced polystyrene sheets reinforced with iron and concrete.

Its parent company said in October it had secured a 23.2 million riyals loan from the Saudi Industrial Development Fund to finance the construction of the factory.

Al Kathiri said at the time that the project is in response to the Saudi Ministry of Housing and the National Industrial Development and Logistics Program that aims to provide the best housing solutions for home ownership and reduce the cost of construction, as well as to create jobs for citizens in the construction sector.

Al Kathiri posted a net profit of 4.15 million riyals for the three months ending September 30, a 22.1% increase from the same period last year.

($1 = 3.75 Saudi riyals)

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