Arabian Contracting Services Co. (Al Arabia) has signed a long-term Sharia-compliant credit facility of 972 million Saudi riyals ($259.2 million) with Saudi Awwal Bank (SAB) to reduce the acquisition cost of Riyadh-based Faden Media.

The eight-year facility will lower finance costs and increase profitability, the company said in a statement to the Saudi stock exchange on Monday.

The terms of the funding were not disclosed.

In November 2023, Al Arabia completed the acquisition of Faden Media for SAR 1.05 billion.

The deal, which was concluded on October 31, 2023, was part of its strategy to enter profitable alliances and partnerships on the local and regional levels to enhance its market share.

(Editing by Seban Scaria seban.scaria@lseg.com)