SAL signs deal to market logistics services in Riyadh

Logo of SAL Saudi Logistics Services Co.

SAL Saudi Logistics Services Co. signed today, Nov. 30, a service marketing agreement under the SAL Logistics Division with Special Integrated Logistics Zone Company (SILZ) to promote and broaden high-quality logistic services to tenants in the Riyadh Integrated Zone near to King Khalid International Airport in Riyadh, developed and managed by SILZ.

Under this agreement. SILZ will refer its tenants to SAL to provide integrated and comprehensive logistic solutions, and for an agreed commission on revenues from the eligible contracts to be paid by SAL, the company said, in a statement to Tadawul.

SILZ will refer its tenants to SAL and, in return, SAL Logistics Division will pay SILZ a percentage (excluding VAT) from the revenues of the eligible contracts.

Under the 12-month agreement, SAL Logistics division will be enabled to provide integrated and comprehensive logistic solutions to SILZ’s tenants with eligible contracts in the Riyadh Integrated Zone facility near to King Khalid International Airport in Riyadh.

According to the company, the agreement reinforces SAL's role as a logistics champion providing high-level solutions that support the growth and sustainability for all its stakeholders, supporting the development of the logistics sector and in line with the Kingdom's Vision 2030.

SAL also clarified that the agreement will automatically be renewed for similar periods unless terminated by either party with a minimum of 60 days written notice.

The agreement is expected to have a positive financial impact on the company’s performance over the duration of the agreement, it added.

According to the statement, there is no clear value impact for the contract at this stage, as it depends on the type of services and the value of the eligible contracts, in accordance with the terms and conditions specified in the Agreement, and after deducting the agreed commission.

There are no related parties involved.