Tihama clarifies lawsuit filed against MEFIC Capital

Tihama Advertising and Public Relations Co. issued a clarification with regard to filing a lawsuit recently at the Securities Disputes Resolution Committee against Middle East Financial Investment Co. (MEFIC Capital),

In a statement to Tadawul, the company clarified that, on May 6, 2024, it signed an investment agreement in the Saudi Film Fund, managed by MEFIC Capital, for a total amount of SAR 37.5 million, representing a 10% stake in the fund's capital.

According to the terms and conditions of the agreement and the fund's regulations, the company is committed to transferring 40% of the total contribution – equivalent to SAR 15 million – during the initial offering period. The remaining percentage (60%) – equivalent to SAR 22.5 million – will be transferred as needed based on the approved investments and liabilities that need to be completed or settled by the fund as stipulated in the agreement, it further said.

Tihama added that, on June 23, 2024, the former CEO transferred SAR 37.5 million to the fund and it subsequently received correspondence from the fund manager confirming the deposit of SAR 22.5 million into a related Murabaha fund called the MEFIC Murabaha Fund.

Upon the company's request, an amount of SAR 24.3 million was withdrawn on August 21, 2025, representing the amount deposited in the Murabaha fund (SAR 22.5 million) plus the profits amounting to SAR 1.80 million.

On October 6, 2025, the company filed a formal lawsuit at the Securities Disputes Resolution Committee demanding the termination of the agreement and the return of the amounts transferred to the fund, based on clause (8-i) of the terms and conditions.

The company also clarified that the fund manager is still demanding the remaining amount of the contribution (60%), and that this obligation is subject to a legal dispute to be settled before the competent committee.

According to Tihama, this announcement serves as a clarification and supplement to the previous disclosure, and the company affirms its commitment to fully comply with the offering rules and ongoing obligations, and to disclose any material developments concerning this matter in a timely manner.

Earlier this month, Tihama said it filed a legal lawsuit at the Committee for Resolution of Securities Disputes (CRSD) against Middle East Financial Investment Co. (MEFIC Capital), in its capacity as the manager of the Saudi Film Fund.