Al Mohafaza Education Reschedules Interest-Free Loan with Related Party

17/06/2026 05:57 AST

Al Mohafaza Company for Education has announced the rescheduling of an interest-free loan obtained earlier this year from Maroum Drilling Medical Services Company, a related party. The loan, valued at three million Saudi Riyals, was originally scheduled for repayment in a single installment within four months of disbursement on February 24, 2026.

The company confirmed that the rescheduling agreement was signed on June 16, 2026, extending the repayment period to nine months from the rescheduling date. Under the new terms, the full loan amount will now be repaid in one installment by March 22, 2027. A promissory note covering the principal remains valid as the guarantee for the financing.

Al Mohafaza explained that the rescheduling was necessary as the original repayment deadline of June 23, 2026 approached. The adjustment aims to reduce financial obligations and improve capital management, which the company expects will positively impact its operational activities.

The announcement also clarified that the loan was obtained in the ordinary course of business and that no preferential treatment was granted to the lender. Board members Mr. Abdullah Saleh Ibrahim Al-Muhaimid (Chairman), Mr. Salah Saleh Ibrahim Al-Muhaimid (Vice Chairman and Managing Director), and Mr. Mohammed Saleh Ibrahim Al-Muhaimid were noted as having an indirect interest in the transaction.

By rescheduling the loan, Al Mohafaza Education reaffirms its commitment to maintaining financial stability while continuing to support its educational initiatives. The company emphasized that the move aligns with its broader strategy to strengthen operations and ensure sustainable growth in the Kingdom's education sector.

Gulfbase