Naqi Water signs SAR 4.2M contract to install desalination unit at Riyadh factory

Naqi Water Co. signed on Sept. 28 a SAR 4.2 million contract with Middle East Factory for Machines Co. (MEMCO) to purchase, supply, and install a stainless-steel water desalination plant for its new factory in Riyadh.

In a statement to Tadawul, the company said the contract covers the supply and installation of machinery and equipment for the water treatment and desalination plant, supporting Naqi’s operational expansion in the Riyadh region. The move aligns with the company’s growth strategy to boost operational capacity, increase market share, and expand the geographic footprint of its factories.

Naqi said the contract will be fully financed through internal resources without the need for external funding. The deal was signed under normal commercial terms and does not include any special conditions or unusual restrictions.

The financial and operational impact is expected to be reflected in the company’s results starting in Q4 2026, following the completion of the factory construction and commencement of commercial operations.

The company clarified that the contract is considered a related-party transaction, as one of the major shareholders in MEMCO owns 50% of its capital and holds a 50% stake in United Saqi Group, which in turn owns 35% of Naqi's shares.

Naqi confirmed that the transaction was approved in accordance with its relevant policies and procedures for related-party dealings, in compliance with applicable laws, regulations, and market rules. The disclosure is made in adherence to the Capital Market Authority’s regulations and the rules on the offer of securities and continuing obligations related to related-party transactions.