Saudi Catering inks 2 contracts worth SAR 9 bln with Red Sea Global

Logo of Saudi Airlines Catering Co.

Saudi Airlines Catering Co. signed two contracts with Red Sea Global Co. (RSG) at a total estimated value of SAR 9 billion, according to separate statements to Tadawul.

The first contract includes the design, building, operation and transfer of a central laundry to serve hotels and resorts as well as other facilities and sectors at the Red Sea project, valued at about SAR 2.7 billion.

Meanwhile, the second contract includes the design, building, operation and transfer of a central production unit for catering and facilities management services. It will serve RSG’semployees at hotel establishments and resorts, in addition to other facilities and sectors across the Red Sea destination, at an estimated value of SAR 6.3 billion.

Each contract is valid for 20 years, said Saudi Catering, adding that it expects a positive contribution to be shown in its accounts by Q3 2025.

The contracts are set to boost the company's business sustainability by increasing its cash flow and strengthening its business. Furthermore, they come as part of Saudi Catering's strategic plan to attract investment opportunities in new industrial and tourist cities.

The two contracts are subject to final approval of RSG’s board of directors.

Earlier today, Tadawul announced a one-day trading halt on Saudi Catering’s stock. The halt came under the company’s request ahead of disclosing a material event. Trading on the shares will resume tomorrow, July 4, according to Argaam's data.