Al Arabia signs contract to build, operate billboards at King Khalid Airport

Logo of Arabian Contracting Services Co. (AlArabia)

Arabian Contracting Services Co. (Al Arabia) announced, on Oct. 26, signing a contract with Riyadh Airports Co. to establish and operate advertising billboards at King Khalid International Airport in Riyadh.

In a statement to Tadawul, Al Arabia said the 10-year contract will begin on Jan. 1, 2024, renewable for another period or similar periods by mutual written agreement. The contract includes a preparation period of up to 12 months. 

The contract is based on a revenue-sharing model or a guaranteed minimum annual amount, whichever is higher. During the first year of the contract, a percentage of the generated revenues will be shared with Riyadh Airports Co. without applying the guaranteed minimum annual amount. From the second year until the end of the contract, the business model will be based on revenue-sharing or a guaranteed minimum annual amount, whichever is higher. 

The guaranteed minimum annual amount from the second to the 10th year is SAR 1.82 billion (excluding VAT), distributed over the nine years in ascending order, according to the contract terms. 

The company will build and operate 525 digital billboards, 90 on the highway to King Khalid International Airport and 435 inside the airport. They will be distributed across the international, domestic and private jet terminals. 

The financial impact will appear in the first quarter of 2024, the company said, adding that there are no related parties to the contract.

In May, Al Arabia won the tender for the establishment and operation of billboards at King Khalid International Airport in Riyadh, according to data available on Argaam.