Saudi Arabian fitness chain Armah Sports has secured a Shariah-compliant credit facility worth SAR 180 million ($47.9 million) from Bank AlJazira, as it looks to expand its business.

The seven-year Murabaha financing, with a grace period of two years, is intended to fund capital expenditures. The Saudi-listed firm, which operates a chain of sports centres in the kingdom, is looking to build new fitness clubs in key cities.

The company expects to save on finance costs, as the lender has also agreed to reduce the Murabaha financing rates on its existing loan by around 22%, after showing stable revenue streams and stronger financial position.

(Writing by Cleofe Maceda; editing by Seban Scaria) 
seban.scaria@lseg.com