Red Sea transactions with Al-Dabbagh Group exceed 1% of revenue

Logo of Red Sea International Co. (RSI)

Red Sea International Co. (RSI) said the total value of its ongoing transactions with Al-Dabbagh Group Holding Co., a related party and major shareholder, exceeded 1% of its total revenue, based on its latest audited annual financial statements.

In a statement to Tadawul, the company said the transaction involves obtaining an interest-free loan to cover financing costs.

It added that board members with an indirect interest in the deal include Chairman Amr Al-Dabbagh, board member Mohammed Jazeel, and board member Shahad Al-Nejaim.

The deal was carried out in the ordinary course of business and in line with prevailing commercial terms, the statement added.

It complies with Article 71 of the Companies Law, having been reviewed by the audit committee, which affirmed that the loan terms are fair, reasonable, and do not pose any risk to the interests of the company or its shareholders.