Al Akaria says Mohammed Al-Hammad ordered to pay SAR 187.5M

Logo of Saudi Real Estate Co. (Al Akaria)

Saudi Real Estate Co. (Al Akaria) said that a final ruling was issued on Sept. 14 by the Commercial Court in Riyadh, ordering the defendant, Mohammed Obeid Al-Hammad, to pay the company SAR 187.5 million.

In a statement to Tadawul, the company entered into an agreement with Al Bayan Holding Group Co. to invest in debt instruments at an amortized cost of SAR 187.5 million.

As Al Bayan failed to pay its investment share plus the accrued profits, Al-Akaria in 2021 filed a lawsuit against Al Bayan and a final ruling was issued to dismiss the lawsuit as it was filed prematurely.

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In 2022, Al Akaria brought a lawsuit against the investment guarantor (the defendant), and a preliminary verdict was issued to dismiss the lawsuit for submitting it prematurely.

Al-Akaria appealed the verdict, and a ruling was issued by the Appeal Court overruling the initial verdict and obliging the Commercial Court to hear the case. The latter considered the lawsuit and ruled in favor of the company.

A positive financial impact will be reflected on Al-Akaria’s financial statements upon collection of the amount after completion of all relevant regulatory procedures.

Any material developments will be announced later, Al Akaria said, adding that there are no financial, legal or operational risks from the lawsuit.