Pan Gulf Gets SAR 70M in Sharia-Compliant Credit from SAB

Pan Gulf Marketing Co. secured SAR 70 million in Sharia-compliant credit facilities from Saudi Awwal Bank, the company said June 29. The facilities, structured under Islamic finance principles, give the consumer goods distributor added liquidity for working capital and general corporate purposes.

The arrangement with SAB, one of Saudi Arabia's largest Islamic lenders, comes as the Kingdom's retail sector benefits from a consumer spending push driven by young demographics and social reforms. Pan Gulf operates in the marketing and distribution of food and non-food products across the region.

For the wider sector, the credit line signals that mid-tier retail firms still have access to bank financing on competitive terms. That matters as companies manage inventory and receivables in a growing but competitive market. SAB has been active in providing Sharia-compliant facilities to the consumer space.