Jazan Development and Investment Co. Announces the settlement of zakat-related cases and disputes for previous years and the agreement on an installment plan with the Zakat, Tax and Customs Authority (ZATCA)

The approved installment plan covers the financial years 2006, 2007, 2008, 2009, 2010, 2014, 2015, 2016, 2019, 2020, and 2023.

Financial Impact:

1. The total estimated obligation has been reduced from SAR 22,585,206 (as disclosed in the zakat provision in the most recent audited financial statements as of December 31, 2024) to SAR 13,813,320.

2. This resulted in savings of SAR 8,766,216 (noting that SAR 5,671 had been paid earlier), which will have a positive impact on the company’s Q2 2025 financial results following the reversal of the provision.

3. The approved installment plan allows for the settlement of the obligation over 132 monthly installments of SAR 104,646 each, with the first payment due on July 30, 2025. Payments will be made from the company's internal resources.

Strategic Importance:

1. The installment plan contributes to improving the company’s cash flow and supports its efforts to strengthen financial stability.

2. This step aligns with JAZADCO’s strategy to close legacy obligations and reinforce the financial position.

These developments will enable the company to focus its efforts on future growth and investment initiatives.

JAZADCO remains fully committed to fulfilling its obligations in accordance with the approved installment plan.

Additional Information:

It is worth noting that the zakat case for the year 2018 is still under review by the Zakat, Tax and Customs Committees, and an adequate provision has been made for this year.