Al Arabia says court overturns ruling against Jeddah Municipality to pay SAR 75.9 mln

Logo of Arabian Contracting Services Co. (Al Arabia) 

Arabian Contracting Services Co. (Al Arabia) announced that Riyadh’s administrative circuit cancelled the preliminary ruling issued in its favor and rejected the company’s lawsuit against the Jeddah Municipality. 

The appeal ruling was received on Nov. 14, which included objective reasons that led to the cancellation of the preliminary ruling related to the contract extension letter, the company said in a statement to Tadawul. 

Al Arabia will take all judicial procedures to maintain its legal rights stipulated in the relevant regulations, including objecting to the cassation decision before the Supreme Administrative Court. 

The amounts claimed by Al Arabia at Jeddah Municipality were previously incurred by the company's previous shareholders before listing and initial public offering. Therefore, there is no impact on the company's activity, financial position and business results at this stage. 

The expected completion date of this event cannot be determined at this moment, the statement said. 

There are no costs associated with the event at the moment. 

In July, Al Arabia announced that a preliminary ruling issued by Jeddah’s 13th administrative circuit was issued in its favor. The order obliged the Jeddah Municipality to repay SAR 75.89 million as compensation for the rental amounts paid to the municipality for sites not handed over to Al Arabia in the Megacom billboards contract. 

Jeddah Municipality filed an appeal against the preliminary ruling within the statutory timeframe, the company disclosed in a statement in September.