Naqi Water signs SAR 1.2M factory contract addendum

Logo of Naqi Water Co.

Naqi Water Co. signed today, June 14, an addendum to the contract for the construction of its new factory in Riyadh, covering additional civil and electrical works to enhance operational readiness and support the company’s expansion plans, at a value of SAR 1.2 million (excluding VAT).

In a statement on Tadawul, the company said the disclosed costs are limited to the value of the contract addendum. It added that the new works are part of efforts to strengthen the plant’s infrastructure and operational capabilities in line with future growth plans.

The additional works include expanding the plant’s operational areas, including the mezzanine floor designated for packaging equipment as this will help accommodate higher production capacity and improve operating efficiency.

The works also include increasing the plant’s electrical capacity by upgrading the main circuit breaker and raising available power capacity to support more efficient operation of current and future equipment and production lines.

Naqi Water said the timeline changed due to delays in supplying some project materials for logistical reasons and related procedures with additional time needed to complete the extra works also contributed to extending the schedule.

The company said work is continuing according to approved plans to ensure project readiness and achieve targeted operational efficiency while delivery is expected in the first half of 2027.

Naqi Water said the additional project costs stem from the contract addendum for extra works under its new factory project in Riyadh, aimed at completing project requirements, improving operational efficiency, and preparing the facility for future expansion.

The company added that the delay is also linked to extra development works aimed at strengthening infrastructure and boosting production capacity. As a result, the expected start of the project’s financial impact has been pushed to the first half of 2027.

Naqi Water said the contract addendum was signed with a related party. Major shareholder in Al-Maamari Advanced Co. owns 50% of its capital and also owns 50% of United Seqa Group, which in turn holds 35% of Naqi Water.

The company said the transaction was approved under its policies and related-party procedures, in compliance with applicable regulations and market rules. The disclosure was made in line with the rules of the Capital Market Authority (CMA) on related-party transactions.

In October 2025,Naqi Water signed a contract with Al-Maamari Advanced to build its new factory in Riyadh for SAR 16.52 million, according to Argaam’s data.