Al Arabia’s Faden extends contract with Remat Al-Riyadh

Logo of  Arabian Contracting Services Co. (Al Arabia)

Arabian Contracting Services Co. (Al Arabia)said that its wholly owned subsidiary Faden Media extended its fourth contract with Remat Al-Riyadh Development Co. for the construction, operation, and maintenance of advertising billboards across various locations in Riyadh.

According to a Tadawul filing, Al Arabia said the extension entails a paid six-month period for preparations and construction, pushing the contract’s expiry date to July 26, 2035, from the previous end date of Feb. 10, 2034.

The move aims to address challenges encountered by the investor since the original signing of the agreement.

The extension period includes a six-month unpaid grace period, followed by one paid year. There will be no financial impact from the delay on the company’s financial statements, Al Arabia added.

Further, the extension represents a positive step that enhances the prospects of achieving the planned returns and supports the development of the outdoor advertising sector in Riyadh, in line with the objectives of Saudi Vision 2030.

The company further noted that this comes as part of the relevant parties’ commitment to ensuring the project’s continued success and sustaining joint cooperation in developing Riyadh’s outdoor advertising sector, contributing to the realization of Vision 2030.

Al Arabia said it will announce any material developments in due course.

According to Argaam data, Al Arabia announced in May 2024 that Faden signed the fourth contract with Remat Al-Riyadh for the construction, operation, and maintenance of advertising billboards on building facades across various locations in Riyadh, with a total contract value of SAR 430 million (excluding VAT) and an annual rental value of SAR 43 million (excluding VAT).