Ladun says all transactions, financing sources compliant with Sharia

Logo of Ladun Investment Co.

Ladun Investment Co. said that all transactions and financing sources are Shariah-compliant, through Islamic finance products, in line with the company’s articles of association and board decisions.   

The company’s acknowledgment came in response to news disseminated on social media and shareholder inquiries about the legality of its activities and financing sources, according to a bourse filing.   

Ladun contacted the entity that assessed its transactions to know the reasons behind classifying Ladun as a mixed company. This entity explained that its view was based on the grounds that Ladun announced in 2021 obtaining a long-term loan, valued at SAR 300 million from Bank Albilad, which was described as “loans from local banks”. The entity added that Ladun neither mentioned the bank’s name nor classified the financing as Shariah-compliant.  

The entity confirmed its view was based on the company’s financial statements and that it is ready to modify Ladun’s classification, if this issue is addressed, Ladun added.  

Ladun, on the other hand, said the loan details will be amended in the consolidated financial statements for H1 2022.