Naqi Water Company Announces the Execution of a Memorandum of Understanding to Acquire a 70% Stake in Ahali Najd Car Rental Company as a Step to Strengthen Growth Drivers and Expand the Scope of Its Business Operations.

Element List	Explanation
Introduction	Naqi Water Company announces the execution of a Memorandum of Understanding with Ahali Najd Car Rental Company, a Saudi limited liability company operating in the car rental sector, regarding the proposed acquisition of a 70% equity interest in Ahali Najd Car Rental Company. This proposed transaction is intended to support Naqi Water Company's strategy of expanding and diversifying its business activities and enhancing future growth opportunities.
Memorandum Signing Date	2026-07-01 Corresponding to 1448-01-16
Counterparty	Ahali Najd Car Rental Company, a Saudi limited liability company.
Memorandum Subject	The Memorandum sets out an agreement between Naqi Water Company and Ahali Najd Car Rental Company to regulate the procedures for the proposed acquisition of a 70% ownership interest in Ahali Najd Car Rental Company by Naqi Water Company. This shall be carried out in accordance with the terms and conditions mutually agreed upon by the Parties, subject to the completion of the applicable regulatory requirements.
Memorandum Duration	180 days from the date of execution of the Memorandum, subject to extension by a written agreement between the Parties.
Related Parties	None.
Financial Impact	The financial impact will be determined upon completion of the final valuation.
Additional Information	1. The signing of this Memorandum aims principally to enhance Naqi water Company's strategy of expansion and investment in promising commercial opportunities that positively reflect on the interests of its shareholders and strengthen its financial position and operational capabilities. 2. This Memorandum is aligned with Naqi water Company's strategy to expand and diversify its business activities through the acquisition of a controlling stake of 70% in Ahali Najd Car Rental Company, a leading and rapidly growing company in the car rental sector, thereby supporting the Company's direction toward capitalizing on promising opportunities and strengthening its market position. 3. Ahali Najd Car Rental Company possesses a broad and diversified customer base, in addition to a strong commercial identity and a well-established brand, making it a suitable foundation for continuing development and expansion in the sector. 4. The acquisition is expected to promote operational integration and synergy between the two companies and enable the utilization of accumulated expertise and capabilities, thereby contributing to improved operational efficiency, business development, and value maximization for shareholders, in addition to benefiting from growth opportunities in the car rental sector. 5. The transaction will be financed through the Company's internal resources and available cash flows without the need for external financing, which is expected to support the Company's future expansion plans and increase the size of its owned vehicle fleet and operational capabilities.