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Al Gassim Investment Holding Co. (GACO) filed a lawsuit on Nov. 16 against a branch of Ministry of Environment, Water and Agriculture in Qassim Province, before the Administrative Court in Buraydah.
The company is seeking to rescind the ministry's abstention from referring its request to King Salman for ownership of the full area of land that was cultivated by the company, according to a bourse filing.
The company expects no liability from filing the administrative lawsuit. It will announce later the expected financial impact, noting that it has received legal advice on its right for filing the claim for the remaining cultivated land.
A royal decree was issued in June approving the company’s ownership of 74 million square meters (sqm) of land handed over to it in Sheri, Qassim, according to data available with Argaam.
In February 2015, GACO said the Saudi Cabinet had endorsed the ownership of a number of agricultural companies, including GACO, for land that was handed to them.
It added that the company's project in Sheri on Hail-Qassim Road, over an area of 171 million sqm, was on the land for which ownership was to be issued.
GACO said all of the conditions set by the Cabinet were fulfilled on the ground, adding that it would complete all required procedures to obtain the ownership deed.
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