Tihama wins appeal, compensation to ex-CEO reduced from SAR 12.2M to SAR 1.7M

The judgment was received through its legal counsel, Mohannad Al-Balkhi Law Firm for Legal Consultations, Tihama said in a statement to Tadawul.

The appellate judgment, issued on Nov. 20, 2025, partially overturned the primary ruling issued by the Eighth Labor Circuit of the Labor Court in Case No. (4731465072) dated Oct. 12, 2025 with respect to the amount of compensation awarded.

As a result, the total amount payable by the company was reduced from SAR 12.2 million under the primary judgment to SAR 1.7 million under the appellate decision, representing a substantial reduction of more than 86%.

The ruling also dismissed the remainder of the claimant’s demands set forth in the lawsuit and ordered the company to provide the claimant with a service certificate in accordance with Article 64 of the Labor Law.

The company confirmed that the appellate ruling led to a significant reduction in the disputed financial liabilities and does not have any material adverse impact on its financial position, noting that the financial impact will be accounted for in accordance with approved accounting standards.

Tihama added that it will disclose any material developments in due course in line with applicable rules and regulations, and affirmed that it will continue to take all necessary legal measures to safeguard its interests and the rights of its shareholders.

According to data available with Argaam, Tihama’s board of directors approved in November 2024 the dismissal of CEO Abdul Aziz Al-Suwailem from his position.

Al-Suwailem resigned in May 2024 from his position as an executive board member and Managing Director due to personal reasons, with the company retaining its legal right to monitor all violations and retaliate in this regard.

In December 2024, Al-Suwailem filed a labor case against the company at the Riyadh Labor Court, claiming that the termination was unjustified and seeking SAR 12.4 million in compensation.

In March 2025, shareholders approved filing a liability lawsuit against Al-Suwailem in his former board role.

In September 2025, Tihama filed a case before the Committees for the Resolution of Securities Disputes (CRSD) against Al-Suwailem, seeking financial compensation for violations he allegedly committed, according to the company.

In October 2025, a primary judgment was issued ordering the company to pay SAR 12.22 million in favor of Al-Suwailem in the labor case he filed against the company.