TADCO approves SAR 23.4M investment in grape orchards

Logo of Tabuk Agricultural Development Co. (TADCO)

Tabuk Agricultural Development Co. (TADCO) said its board approved an investment contract worth SAR 23.35 million, excluding VAT, for the company’s grape orchards through Ruwad Alsinaa Waltatweer Co. for a 10-year period.

In a statement to Tadawul, the company said the contract covers the investment of grape orchards in two phases, starting with 123 hectares until 2029, and expanding to 196 hectares by the end of the contract term.

It noted that the grape segment had incurred accumulated losses over the past 10 years amounting to SAR 57.18 million, with an average annual loss of approximately SAR 5.7 million.

The company explained that the contract will contribute to maximizing the value of the invested assets, which have a book value of SAR 8.5 million, by transforming a loss-making agricultural asset into a source of stable and sustainable income. In addition, the investor will bear all operating costs throughout the duration of the contract.

It added that the contract will help generate stable rental cash flows totaling SAR 23.35 million over the contract period and improve the company’s financial performance indicators.

The financial impact of the contract will be reflected over the entire contract period, starting from the first quarter of 2026 until the end of the contract.

There are no related parties involved, the company said.