Al Arabia signs deal with Umm Al Qura for billboards in Makkah’s Masar Destination

Logo of Arabian Contracting Services Co. (Al Arabia)

Arabian Contracting Services Co. (Al Arabia) signed on March 28 a concession agreement with Umm Al Qura for Development and Construction to install and operate billboards in Masar Destination in Makkah, for 15 years from the signing date.

The company added in a statement on Tadawul that 315 digital billboards of various types and sizes would be installed in different areas, including 34 billboards on bridges and tunnels and 80 on internal elevators.

The number of billboards is subject to increase after obtaining the required approvals. Al Arabia explained that the business model in this agreement depends on sharing a percentage of revenues or the guaranteed annual minimum, whichever is higher, according to the agreement terms.

According to the terms, in the first four years of the agreement, a percentage of the revenues is shared with Umm Al Qura without applying the guaranteed annual minimum.

From the fifth year until the end of the agreement, a percentage of the revenues or the guaranteed annual minimum, whichever is higher, is shared with Umm Al Qura.

The revenue sharing percentage with Umm Al Qura is subject to the agreement’s terms and conditions.

The total guaranteed annual minimum from the fifth year until the 15th year is SAR 252.61 million, which will be distributed over the 11 years in an ascending manner. Al Arabia expects that the financial impact as of Q1 2025.