Macro · Explainer

How Murabaha Facilities Work

SAR 12bn  ·  15-year senior-secured  ·  June 2026

🏦
Syndicate
10-Bank Consortium
Al Rajhi, SNB, Riyad + 7 others
🏙️
Borrower
KAFD DMC
PIF subsidiary · Riyadh
📊
Liquidity Source
Open Market
Commodity exchange
1
Step 1  ·  Banks → Asset
The syndicate buys a commodity at spot price
🏦
10 Banks
purchase · SAR 12bn
🪨⛏️
Commodity asset
(e.g. metals)
2
Step 2  ·  Banks → KAFD
Banks resell to KAFD at cost + markup — payment deferred 15 years
🏦
Banks
🪨⛏️
Asset
＋ markup
deferred · 15 yrs
🏙️
KAFD DMC
(owes deferred price)
3
Step 3  ·  KAFD → Open Market
KAFD sells the commodity at spot — receives cash now
🏙️
KAFD DMC
sells at spot
🪨⛏️
Asset
receives ~SAR 12bn
💵💵💵
Liquidity
📊
Open Market
4
Step 4  ·  KAFD → Banks  ·  Ongoing
KAFD repays in installments from rental income over 15 years
🏙️
KAFD DMC
💵💵💵
installments
📅
15 years
🏦
Banks earn
sale profit
Source: KAFD DMC / Tadawul, June 2026. Murabaha structure reflects standard commodity Murabaha practice. Specific profit rate undisclosed.  ·  L4 Global · Lewis "DJ" Johnston IV, MBA.