Naqi Water signs SAR 16.52M contract to build new factory in Riyadh

Naqi Water will self-finance the project

Naqi Water Co. signed a contract with Al-Memary Advanced Ltd. Co. for construction of its new factory in Riyadh, at a total value of SAR 16.52 million.

The contract pertains to all construction works, including electrical, mechanical, and infrastructure, necessary for the operation of the production lines and the desalination plant, Naqi Water said in a statement on Tadawul.

The agreement seeks to ensure the factory is prepared for commercial operation in line with the highest technical standards.

The project will be self-financed in full, the statement added.

The new factory’s production capacity will exceed one billion bottles annually, representing an increase of about 70% compared to the current capacity of its main factory in the Qassim region, in line with the company’s strategy to enhance its market share.

The construction will begin on Nov. 1 and is expected to complete by Nov. 1, 2026.

The project’s financial impact is estimated to appear in the fourth quarter of 2026.

This contract is a related party transaction, as one of the major shareholders of Al-Memary Advanced owns 50% of its capital and holds 50% of United Seqa Group, which in turn owns 35% of Naqi Water shares.

The company confirmed that the transaction was approved in accordance with its related-party policies and procedures, in compliance with relevant laws, regulations, and market rules, the statement noted.

Naqi Water concluded that this agreement is part of its previously announced plans to establish and operate a new factory in Riyadh, aimed at boosting production capacity and expanding its operational footprint in line with the company’s growth strategy.