Tabuk Agricultural Development Co. Announces Signing of an Investment Contract for Grape Orchards with Ruwad Alsinaa Waltatweer Company

The contract includes the investment of grape orchards in two phases, starting with 123 hectares until 2029, and expanding to 196 hectares until the end of the contract term. It is noteworthy that the grape sector has incurred accumulated losses over the past ten years amounting to SAR 57.181 million, with an average annual loss of approximately SAR 5.7 million.

The contract will also contribute to maximizing the value of the Company’s invested assets, which have a book value of SAR 8.5 million, by transforming a loss-making agricultural asset into a stable and sustainable source of income. In addition, the investor will bear all operating costs associated with the investment throughout the contract period.

This contract will contribute to achieving stable rental cash flows with a total value of SAR 23,352,000 (twenty-three million three hundred fifty-two thousand Saudi Riyals) over the term of the contract, and to improving the Company’s financial performance indicators. In addition, it will lead to the cessation of losses in the grape segment and its transformation into a stable and sustainable source of income throughout the contract period, as well as reducing the operational risks associated with managing agricultural activities.

• Cessation of total accumulated losses (past 10 years):

Approximately SAR 57.181 million

• Stable sustainable return and asset value maximization (next 10 years):

Amounting to SAR 23.352 million

Period during which the impact of the contract will be reflected:

The entire contract period, starting from the first quarter of 2026 until the end of the contract.