A massive deal.. Saudi Sal invests 4 billion riyals in a new logistics area.

Saudi Logistics Company (SAL) has signed a preliminary agreement with Sila to lease a land area of 1.56 million square meters in Falcon City, north of Riyadh, aiming to develop an integrated logistics area with investments reaching up to 4 billion riyals. This move is part of SAL's strategy to expand its infrastructure and enhance its operational processes.

Details of the Agreement between "SAL" and "Sila"

According to a statement issued by SAL through "Tadawul Saudi" today, Tuesday, the land is located in the Al-Mulhim area, north of Riyadh, and will be leased for 30 years with the option to extend for an additional 15 years, at an annual rent of 16 riyals per square meter, with an annual inflation rate of 1.5% after the extended grace period of 3 years.

SAL will also pay a non-refundable fee of 25 million riyals upon signing the final agreement, which will be allocated for infrastructure costs, including electricity and road preparation. The agreement will take effect after receiving the land or after Sila notifies that it is ready for delivery, with the final agreement to be signed within 6 months.

"SAL" Enhances Its Investments Through a New Logistics Area

With this move, SAL aims to expand its operational activities and create a sophisticated logistics area, which will enhance its future revenues with expectations of financial impact from the project in the coming years. The company is currently finalizing the technical and financial studies for the project and selecting the appropriate financing program, while confirming the announcement of any substantial updates in the future.

"SAL" Joins the "Sharik" Program to Enhance Government Support

In a related context, SAL signed a framework agreement with the Sharik Program Center to support the Falcon City logistics area project, as announced on March 18. The agreement aims to determine SAL's eligibility criteria for obtaining empowerment programs to support the project, with eligibility obligations continuing until December 31, 2030. The company confirmed that the agreement will not financially impact its ongoing operations, nor does it involve any related parties.

Performance of "SAL" Stock in the Market

In trading, SAL's stock (TADAWUL: 4263) saw a decrease of 1.35%, losing 2.80 riyals, and settling at 204.00 riyals during today's trading session in the Saudi stock market.

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