Cenomi Centers signs deals with Saudi Downtown to develop Al Khobar mall

Logo of Cenomi Centers

Arabian Centres Co. (Cenomi Centers) signed on March 31 an agreement with Saudi Downtown Co., a wholly owned subsidiary of the Public Investment Fund (PIF), to develop a new shopping mall in Al Khobar.

In a statement to Tadawul, the company said the contract value exceeds 5% of its annual revenue.

Under the agreement, Cenomi Centers will oversee and manage construction of the mall until completion, expected within three years after obtaining the necessary approvals. The company will also appoint contractors and engineers, ensuring the project follows the master plan’s architectural design prepared by the owner.

The agreement is valid for three years and may be extended by up to two additional years by mutual consent.

The company said the contract is expected to affect revenues and cost of revenues, with a positive impact on net income during execution.

In a separate statement, Cenomi Centers said it signed a lease-to-operate (promise-to-lease) agreement with Saudi Downtown to lease and operate the new mall for 25 years. The company said the agreement currently has no contract value, as it constitutes a non-binding lease and operation promise.

The agreement is valid for three years, extendable by two additional years if both parties mutually agree.

Cenomi Centers said the deal will expire upon handover of the mall, after which a 25-year lease and operation contract will be executed. There is no immediate financial impact from the agreement.

According to Argaam data, Cenomi Centers reported revenue of approximately SAR 2.29 billion in 2025, and thus the contract value exceeds SAR 114 million.