Al Kuzama inks SAR 45M catering services deal with government entity

Al Kuzama Trading says the deal is part of its expansion strategy in the catering and hospitality sector

Al Kuzama Trading Co. signed on Sept. 30 a daily catering services agreement for the personnel of a government entity, worth SAR 45 million (VAT inclusive), according to a Tadawul statement.

Under the 36-month contract, the company will offer the daily catering and hospitality services to the personnel, based on purchase orders issued by the entity and in accordance with the agreed price list.

Al Kuzama clarified that the name of the government entity has not been disclosed pursuant to the non-disclosure agreement. The required regulatory approvals in this regard have been obtained.

The award letter was obtained on Dec. 18.

The agreement is expected to have a positive financial impact on the company’s results upon the commencement of supply and the receipt of purchase orders under the agreement.

No related parties to the deal, the statement noted.

The agreement represents an extension of the company’s expansion strategy in the catering and hospitality sector, aimed at strengthening its market share in this key business segment, maintaining diversification within its business portfolio, and aligning with the expectations of the local market.