Jabal Omar raises SAR2 Billion Islamic loan for debt repayment

Saudi Islamic funding from Alrajhi Bank to refinances existing debt on better terms, the company said Monday. The five-year facility has an option to be extended by three years.

The Makkah developer, which owns the iconic Jabal Omar complex close to the Grand Mosque, said the funding will be used to fund debt repayment, enhance cash flow, and refine its mortgage structure.

"This new facility enhances our financial position and offers greater flexibility in managing our obligation," Jabal Omar said in a statement.

Although the firm did not reveal the terms in full, analysts said refinancing can stabilize its balance sheet. "By locking up longer maturities and better liquidity, Jabal Omar is able to ease near-term pressure and concentrate on operations," said a Riyadh-based market analyst to local media.

Key Highlights:

• Jabal Omar secures SAR2bn (USD 533m) Islamic loan from Alrajhi Bank to refinance debt and improve cash flow
• The developer continues restructuring efforts after previous multi-billion riyal debt-to-equity swaps
• Despite a Q2 loss, first-half 2025 profit surged to SAR 904m, boosted by a major land sale

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The group has earlier utilized debt-for-equity swaps to alleviate its financial strain. It settled SAR547.5 million of its liabilities by issuing new shares in December 2023, after a similar SAR5.3 billion debt swap in 2022 with Alinma Makkah Real Estate Fund.

Jabal Omar posted a net loss of SAR42 million in Q2 2025, from a SAR33 million profit a year ago on the back of a 20 percent decline in revenue. Nevertheless, first-half net profit rose to SAR904 million from SAR52 million a year ago, driven by a SAR918 million sale of land.

The company's total debt was SAR12.1 billion as of end-2024. Shares ended 1.4 percent firmer at SAR18.81 on Monday, having risen 21 percent so far this year.