Al Kathiri board nods to start building luxury yachts factory

Logo of Al Kathiri Holding Co.

Al Kathiri Holding Co.'s board approved the start of a project to build a factory to assemble and manufacture luxury yachts in one phase during 2024, at a cost of SAR 20 million, to be financed from the company’s internal resources, the company said in a statement to Tadawul.

There are no related parties to the move, Al Kathiri noted, adding that the project comes in line with its strategy that seeks to grow and diversify its business portfolio.

The company signed the land lease contract through the Saudi Authority for Industrial Cities and Technology Zones (Modon) with an area of 8,775 square meters in the Third Industrial City in Jeddah.

The factory's key activities are the manufacturing of luxury yachts, pleasure boats, fishing boats, and jet skis, the company said.

Al Kathiri also said the expected date for the pilot production of the project will be in Q1 2025 for four months.

The project is poised for completion in Q1 2025, the company said, adding that the related financial impact will appear starting from Q2 2025.

This project comes within the company's strategy and plan to expand and diversify its investment portfolio. It is expected that the maximum production capacity of the project will reach 150 units annually by the end of the fourth quarter of 2025, distributed among luxury yachts, pleasure boats, fishing boats, and jet skis, according to the statement.

It added that the value of the lease contract is SAR 26,325 annually for 20 years, in addition to an amount in exchange for the allocation of SAR 8,775 per month until the start of production or the completion of 24 months from the date of the contract, whichever comes first.

Any developments related to the project will be duly announced.

The company's board of directors approved, on Oct. 28, 2023, setting up a 100% owned one-person limited liability subsidiary with a capital of SAR 10 million. The new entity, headquartered in King Abdullah Economic City (KAEC) in Rabigh, will specialize in building luxury yachts, according to Argaam's data.