Tihama faces preliminary ruling to pay SAR 12.2M to former CEO

Logo of Tihama Advertising and Public Relations Co.

Tihama Advertising and Public Relations Co. said a preliminary ruling was issued on Oct. 12, obligating it to pay SAR 12.22 million to former CEO Abdulaziz Al-Suwailem in the labor lawsuit filed against the company.

In a statement to Tadawul, Tihama said the ruling is preliminary and not yet final. Thus, the company will appeal it within the statutory period before the Labor Appeals Court.

There is no direct financial impact at this stage, and any impact will be announced later when the final judgment is issued, the statement added.

The board of directors approved the dismissal of Al-Suwailem in November 2024, according to Argaam data.

Al-Suwailem had resigned from his position as an executive board member and Managing Director due to personal reasons in May 2024. The decision stipulated that the company retains its legal right to monitor all violations and retaliate in this regard.

In December 2024, the company announced that Al-Suwailem had filed a labor lawsuit against the company with the Riyadh Labor Court, claiming that the contract had been terminated without a valid reason. The plaintiff claimed SAR 12.4 million in unpaid entitlements.

In March 2025, the company’s shareholders approved filing a liability lawsuit against Al-Suwailem and authorized the board of directors to take the necessary legal and regulatory measures in this regard.

In September 2025, Tihama filed a lawsuit with the Committee for Resolution of Securities Disputes (CRSD) against Al-Suwailem, demanding financial compensation for his transgressions.