Arab Sea eyes scaling contract execution, competition, gov’t projects

This should enhance its capacity to expand contract execution, compete for new projects, and increase its share of government projects in the periods ahead, Al-Suhaibani said in an interview with Argaam.

The top executive affirmed that the company’s priority is to deploy these resources into activities and projects that support operational growth and improve capital efficiency, positively impacting its financial performance over the medium and long term.

Arab Sea, according to Al-Suhaibani, expects to realize capital gains from the sale of its entire SeaPay stake, albeit the final capital gain or loss will depend on the investment’s carrying book value upon transaction completion, the applicable accounting treatment, and any related liabilities or settlements.

Al-Suhaibani explained that the total transaction value of SAR 35 million comprises SAR 15 million in cash consideration and SAR 20 million in in-kind consideration, representing an ownership stake in the ultimate holding company of PayTabs Group, based on the pre-agreed benchmark valuation and terms outlined in the MoU.

He noted that the proposed arrangements include the buyer’s commitment to inject an additional SAR 10 million into SeaPay to support business growth and operational development, stressing that this funding is independent of the overall transaction value.

Procedures to complete the transaction include due diligence, finalizing the definitive agreements, and obtaining the necessary regulatory approvals including the Saudi Central Bank (SAMA).

Arab Sea is committed to announce any material developments or the expected completion date, in accordance with regulatory requirements, he stressed.

Regarding the rationale behind the divestment decision, Al-Suhaibani said SeaPay’s operating results and revenue had fallen short of target levels despite Arab Sea’s investments in the company over the past years. This prompted management to assess the available strategic alternatives to maximize investment value and improve capital allocation efficiency.

He added that the full divestment does not mean a permanent exit from the fintech sector, as Arab Sea will retain indirect exposure through a proposed equity stake in global PayTabs Group, which operates in more than 11 countries. This will allow it to capture growth opportunities in the digital payments sector without directly managing the business.

As for liquidity pressures reflected in the financial statements, Al-Suhaibani stressed that the divestment decision is part of the company’s efforts to strengthen its financial position and improve the efficiency of managing its resources and investments. He expects the cash proceeds to improve liquidity and provide additional financial flexibility to meet operating needs.

He explained that exiting direct ownership of SeaPay will reduce the need for additional operating investments in digital payments, allowing the company to redirect resources toward its core activities and projects with targeted operating returns. This is besides easing the burden associated with direct operational management.

These measures are expected to enhance Arab Sea’s financial flexibility and its ability to manage liabilities and finance future projects. Al-Suhaibani noted that the actual financial impact will be determined upon transaction completion, in accordance with the relevant accounting treatment.

Regarding its Q3 2026 financial performance, Al-Suhaibani said Arab Sea focused during the period on growing revenue from commercial-sector systems and government projects. This is alongside implementing measures to improve financial performance, enhance operational efficiency, and manage costs.

He added that the company continues to execute its existing projects, focusing on expanding its government projects, and pursuing opportunities related to digital transformation. It will announce its Q3 2026 results in accordance with the applicable deadlines and regulatory requirements.

According to Argaam data, Arab Sea signed an MoU with PayTabs Group for a transaction to sell its entire 100% stake in the then-wholly owned subsidiary SeaPay, for a total consideration of SAR 35 million.