SAL signs SAR 233M contract to develop Jeddah ground terminal Phase II

SAL Saudi Logistics Services Co. signed on Jan. 8 a contract with Contracting & Construction Enterprises Co. (CCE) with a total value of SAR 233 million, excluding value-added tax (VAT).

The deal aims to carry out the construction works for developing SAL terminal at King Abdulaziz International Airport (KAIA) in Jeddah.

According to SAL’s statement on Tadawul, the second phase of the development project for SAL Jeddah terminal includes new construction works and upgrades to existing facilities, supporting utilities, and infrastructure, in accordance with the approved designs and specifications.

The project will be financed through Shariah-compliant banking facilities, the company’s available cash liquidity, and other available financing programs, SAL clarified.

It also stated that construction works are expected to commence in Q1 2026, with completion anticipated in Q3 2028.

In addition, operational activities are expected to begin in Q3 2028, subject to obtaining the necessary approvals from the competent authorities.

The project is expected to have a positive impact on SAL’s financials upon completion and the start of operations at the terminal, with the impact on results expected to begin in Q3 2028.

This contract comes as part of SAL’s strategy to enhance the efficiency and reliability of its services through its ongoing efforts to develop facilities, boost capacity, and meet current and future operational requirements.

The company confirmed that there are no related parties involved, noting that it will disclose any other material developments related to this project in due course in accordance with the relevant regulations.