Al Arabia extends Riyadh outdoor advertising contract with Remat Al Riyadh

Logo of Arabian Contracting Services Co. (Al Arabia)

Arabian Contracting Services Co. (Al Arabia) on Oct. 21 signed an addendum for extending the term of the main contract between Al Arabia Alliances for Smart Advertisement and Remat Al-Riyadh Development Co.

Al Arabia Alliances is jointly owned by Al Arabia and Saudi Company for Artificial Intelligence (Humain).

According to a statement on Tadawul, the contract’s expiration date has been extended to Dec. 31, 2035, instead of Sept. 5, 2033.

During the extension period, the agreed-upon revenue-sharing model between both parties will remain in effect, resolving the issues that investors faced since the signing of the contract.

The company explained that this extension will help redistribute costs and enhance the project’s profitability, positively impacting the financial performance of Al Arabia Alliance, and in turn, Al Arabia. Additionally, it is consistent with the company’s strategic intentions for growth, expansion, and sustainable shareholders' equity.

The extension period will continue under the revenue-sharing model between both parties, the company said, adding that it will disclose any significant updates pertaining to the matter.

Al Arabia emphasized that the move reflects the commitment of all parties to ensuring the project’s long-term success, overcoming investor challenges, and achieving the planned returns since the agreement’s inception. It also aims to support the development of Riyadh’s outdoor advertising sector and contribute to the realization of Saudi Vision 2030.