Loans to employees comprise the following:
| Description | Notes | 2025 | 2024 |
|---|---|---|---|
| Home loans to employees | 9(a) | 19,590 | 21,334 |
| Other loans to employees | 9(b) | 935 | 2,138 |
| Less: current portion | 12 | (5,656) | (4,764) |
| 14,869 | 18,708 |
(a) Home loans to employees
The movement in home loans to employees’ balance is as follows:
| Description | 2025 | 2024 |
|---|---|---|
| Opening balance | 21,334 | 19,618 |
| Disbursed during the year | - | 2,400 |
| Finance income for the year | 662 | 855 |
| Discounting effect on loan disbursed | - | (355) |
| Deductions during the year | (2,406) | (1,184) |
| Closing balance | 19,590 | 21,334 |
Home loans are given to eligible Saudi employees of the Company under a scheme approved by the Board of Directors. Under this scheme, loans are provided to eligible employees for the purpose of purchasing or constructing their residential houses. Such loans, which do not bear any finance charges, are re-payable by the employee as per the agreement with the employee and the Company have the title of the property until the employee has settled all dues. The fair value of the related collateral property is higher than the carrying value of the home loan to employees.
b) Other loans to employees
Such loans are given to eligible Saudi employees of the Company under a scheme approved by the Board of Directors. Under this scheme, the employees are eligible for loans up to 80% of their end-of-service benefits accrued. Such loans, which do not bear any finance charges, are re-payable by the employees over 36 months and are secured against the related employees’ end of service benefits.
The movements in other loans to employees are as follows:
| Description | 2025 | 2024 |
|---|---|---|
| Opening balance | 2,138 | 1,544 |
| Loans disbursed during the year | 685 | 2,057 |
| Finance income for the year | 317 | 468 |
| Discounting effect on new loan | (365) | (590) |
| Deductions during the year | (1,840) | (1,341) |
| Closing balance | 935 | 2,138 |
Other loans to employees are recognised as a non-current financial asset at fair value and measured at amortised cost using the EIR method. The difference between the fair value and the actual amount of cash given to the employee is recognised as an expense. The carrying amount of employees’ loans on each reporting date approximates the fair value of this balance.