Al Arabia says Jeddah Municipality waives 2022 contract

Arabian Contracting Services Co. (Al Arabia) said in a statement to Tadawul that Jeddah Municipality approved to waive a contract for leasing 40 digital advertising billboards to be installed on bridges and tunnels in Jeddah. This came as there were some obstacles that had a fundamental impact on the project’s profitability, the statement added.

 

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Al Arabia expects to generate revenue from the Jeddah media market mainly through its subsidiary, Faden Media Agency Co., which has a significant presence through an advertising contract with the Jeddah Municipality.

 

Further, additional investments are generated from Faden's investment in a company that holds two major contracts with the Jeddah Municipality. This creates savings based on the economies of scale from a cost perspective, the statement noted. Al Arabia announced on Feb. 15 that it won a bid to rent 40 digital billboards to be installed on bridges and tunnels in Jeddah at a total amount of SAR 1 billion for 10 years, data compiled with Argaam showed.

 

As a result, the company expected its total revenues to increase by 5% in 2022 and reflect positively on the same year’s financial results.