Asharqiyah Agriculture Development Co. welcomed a cabinet decision on its reclaimed land ownership request and said in a bourse statement that the move should have a positive impact on its investors’ equity.
The Saudi government decided on Monday to appoint an independent land surveyor to measure the size of the land reclaimed by the agricultural developer, in preparation for granting land deeds claimed by Asharqiyah and repossessing any undeveloped land.
As a result, the company will be able to eventually add the value of the land to its asset book after it completes some administrative procedures.
The total size of the reclaimed area is said to be 101.3 million square meters, which had previously been set a fixed valuation of SAR 4.56 million, or SAR 0.07 a meter for about 65.2 million square meters.
Although the land value will not be changed for the time being, the company said it expects a revaluation in the first quarter of 2017.
The company is required by the government to submit a sustainable plan for its future agricultural productivity and water consumption. This will then be reviewed by the water and electricity ministry, as part of the Saudi government’s push for water conservation in the kingdom.
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