Riyadh – Mubasher: Red Sea International Company has announced the completion of all regulatory procedures and the formal handover of land for its major investment project in Al Madinah Al Munawwarah.
Following the initial award of the contract in late 2025, the company has now finalized the agreement with the Al Madinah Al Munawwarah Municipality through the Furas platform.
The project, valued at SAR 161.95 million, involves the construction, operation, and maintenance of a large-scale mixed-use development over a 50-year lease term.
The formalization of this agreement follows an initial announcement made on 29 October 2025 regarding the awarding of the lease contract.
Red Sea International has confirmed that the contractual relationship is now fully active following the electronic acceptance of the draft contract, the settlement of all statutory invoices, and the official handover of the site.
The land handover protocol was dated 1 July 2026, which serves as the definitive date for the commencement of the contract’s validity and the start of all associated contractual obligations. This date marks the beginning of the 50-year investment period granted by the municipality.
The project is situated on a prime plot of land at the intersection of Omar bin Al Khattab Road and Abdul Harith bin Zaid Al-Dhabi Road in Al Madinah Al Munawwarah.
Spanning a total area of 63,088 square meters, the site is designated for the development of a mixed-use building.
Under the terms of the agreement, Red Sea International will be responsible for the comprehensive development cycle, including the initial construction phase followed by the long-term operation and maintenance of the facility.
This figure represents the aggregate rental value to be paid over the half-century duration of the lease.
Regarding the impact on the company’s financial statements, Red Sea International noted that the financial effects associated with this contract began to manifest during the first quarter (Q1) of the 2026 fiscal year. This coincides with the initiation of development and operational activities on the newly acquired site.
The company clarified that the transaction was processed through the Furas platform, the national portal for municipal investment opportunities in Saudi Arabia, ensuring compliance with standardized investment procedures.
Red Sea International confirmed that there are no related parties involved in this transaction, affirming that the deal was conducted on an arm's length basis with the government municipality.
In June, the Fundamental Installation for Electric Work Company (First Fix), a subsidiary of Red Sea International, entered into a SAR 352.60 million substantial subcontract with Salini Saudi Arabia Company Limited.
