Arabian Cement gets favorable ruling against Emaar EC

Arabia Cement factory

Arabian Cement Co. (ACC) announced today, June 12, receiving a court order in its favor, ordering Emaar The Economic City (Emaar EC) to supply to the company 4.57 million tons of limestone based on the agreement signed by the two parties on April 28, 2012.

The order, delivered by Jeddah’s Commercial Court, can be appealed within 30 days from the issuance date, the cement producer said in a statement to Tadawul. The ruling will be deemed final if no appeal is filed within the specified period.

There is no financial impact from this ruling on the company, Arabian Cement noted, adding that any related developments will be duly disclosed.

In September 2021, Arabian Cement filed a lawsuit before Jeddah Commercial Court against Emaar EC, claiming the remaining quantities of limestone ore in accordance with the agreement signed between them in 2012.

Both companies reached a final settlement on April 28, 2012, regarding the dispute that existed between them on the overlapping of the 3.66 million square meters land plots owned by Emaar EC by virtue of legal deed no. 24/1 and the concession lands granted to Arabian Cement.

Under the settlement, Emaar EC was committed to provide, free of charge, 50 million tons of limestone needed for the cement company’s manufacture from the dredging output extracted from the construction of the King Abdullah Economic City port, after obtaining the necessary mining license from the Ministry of Petroleum and Mineral Resources. In return, Arabian Cement was obliged to give Emaar the concession lands it owned by virtue of the legal deed.

The agreement was valid for six years.