Umm Al Qura for Development and Construction Company, known on the Saudi Exchange as Masar, has signed a Shariah-compliant revolving credit facility worth SAR 500 million with Saudi Awwal Bank (SAB), providing the company with flexible short-term financing to support its general working capital requirements across its development operations.
In a disclosure filed with Tadawul, Masar confirmed that the 12-month revolving facility will be utilised as needed and is secured by a mortgage over title deeds, alongside a promissory note equivalent to the full value of the facility limit. No drawdowns have been made against the facility to date.
A Flexible Shariah-Compliant Structure
The facility documents were originally executed on January 22, 2026, with final completion of all formalities on March 29, 2026. The revolving structure of the facility gives Masar a particularly useful financial instrument — it allows the company to draw down funds when required and repay them as cash flows allow, without the fixed obligations associated with a term loan. For a real estate developer managing multiple projects at varying stages of the construction, sales, and delivery cycle, this flexibility is a material advantage.
The involvement of Saudi Awwal Bank — one of the Kingdom’s leading commercial and investment banking institutions — reflects the strong collateral base underlying Masar’s real estate portfolio and the continued willingness of Saudi financial institutions to provide structured credit to established developers operating across the Kingdom’s growth corridors.
Saudi Real Estate and Banking Sector Confidence
The transaction arrives at a period of considerable activity in Saudi Arabia’s real estate and financing markets. The Kingdom’s development pipeline remains extensive, with public and private investment flowing into residential, commercial, hospitality, and mixed-use schemes linked to Vision 2030 programmes spanning Riyadh, the Red Sea coast, and the Holy Cities.
Saudi commercial banks have maintained robust lending activity throughout 2025 and into 2026, supported by strong capital ratios and steady domestic deposit bases. Revolving credit facilities of this type — Shariah-compliant, asset-secured, and structured for operational flexibility — represent a core product in the Kingdom’s corporate banking suite, enabling listed developers to manage liquidity efficiently while continuing to expand their project portfolios in line with the Kingdom’s broader transformation ambitions.
