Al Arabia's subsidiary inks 3 contracts worth SAR 442.6M with Remat Al-Riyadh

Logo of Arabian Contracting Services Co. (AlArabia)

Arabian Contracting Services Co.'s (AlArabia) wholly owned subsidiary Faden Media Co. signed three contracts worth SAR 442.64 million with Remat Al-Riyadh Development Co., according to statements to Tadawul.

Under the first contract, Faden Media will establish, operate, and maintain advertising billboards on public taxis and buses in Riyadh. The contract is valued at SAR 6.84 million (excluding VAT), with an annual lease payment of SAR 3.6 million (excluding VAT). There will be a 10% discount applied to the annual lease payment during the first year of the contract.

In a separate statement, the company said that the second contract is for advertising billboards on public taxis and buses in Riyadh, at a total value of SAR 5.8 million (excluding VAT), and with an annual lease payment of SAR 3.05 million (excluding VAT). There will be a 10% discount applied to the annual lease payment during the first year of the contract.

The two contracts will have a term of two years, including a preparation period extending up to 1.2 months. The billboards in this project consist of advertising posters on 500 taxis or buses, the company said.

It noted that the related financial impact will reflect during Q4 2024.

The company also announced another contract for establishing, operating, and maintaining advertising billboards on the buildings' facades at various sites in Riyadh, at a value of SAR 430 million (excluding VAT) with an annual lease payment of SAR 43 million (excluding VAT). There will be a 50% discount applied to the annual lease payment during the first year of the contract. Starting from the sixth year until the end of the contract, a 10% increase will be applied to the annual lease payment.

The scope of the project includes three buildings identified by Remat Al-Riyadh. Six digital billboards would be installed on the building facades, with formats estimated at 40 meters or more for the one billboard.

The contract duration is 10 years including a preparation period extending up to six months, the statement said, noting that the related financial impact will begin on Q1 2025.