Riyadh – Mubasher: Armah Sports Company, a leading entity in the Saudi Arabian fitness and wellness sector, has obtained a Sharia-compliant Murabaha financing facility from the Saudi National Bank (SNB), according to a bourse disclosure.

The agreement is valued at SAR 110 million and is structured to support the company’s operational liquidity and its capital expenditure requirements for club development during the five-year financing duration, with the date of funding set as 21 May 2026.

This strategic financial move underscores Armah’s commitment to expanding its footprint and enhancing its service offerings within the Kingdom’s growing sports market.

The comprehensive credit line with SNB is a widely utilized instrument in Islamic finance where the bank purchases an asset and sells it to the client at a cost-plus-profit margin, allowing for deferred payments.

The primary purpose of the financing is twofold. First, it is intended to address the company’s working capital needs, ensuring that Armah maintains sufficient liquidity to manage its day-to-day operations across its portfolio of sports clubs.

Second, the funds are earmarked for significant capital investments, specifically for the procurement of high-end gym equipment, interior decoration, and furniture for its fitness facilities.

By securing this funding, Armah is positioned to maintain the high standards of its club environments, which are essential for attracting and retaining its membership base in a competitive market.

The company provided the Saudi lender with a robust guarantee package, including the issuance of a promissory note and the registration of a real estate mortgage. These collateral measures are standard for corporate financing of this scale in the Saudi market, providing the lender with necessary assurances while allowing the borrower to leverage its existing assets to fund future growth.

The company recently entered into a major land lease agreement to develop two new sports clubs in Riyadh.

It is worth noting that Armah plans to transfer from the Parallel Market (Nomu) of the Saudi Exchange (Tadawul).