Al Arabia inks SAR 6.2 mln licensing contract to rent 24 sites in Egypt

Arabian Contracting Services Co. (Al Arabia) inked on Sept. 21 a licensing contract to rent 24 sites in the North Coast, Egypt, at a total value of SAR 6.16 million (EGP 50.5 million), according to a statement to Tadawul. 

The contract will last for one year and is automatically renewable, the statement added. 

Under the contract, Al Arabia’s associate, Arabiya United for Advertising Service, will rent 24 sites in the North Coast, including 12 sites to install 64 billboards on roads, six sites to install unipole billboards, and six others for digital billboards on bridges, with a coverage of 89% of all sites. 

The relevant financial impact will appear in 2023 consolidated financial statements. 

The number of sites available for exploitation increased from 17 to 24, and small billboards were replaced with larger advertising format. As a result, the total number of billboards decreased from 174 to 64, and six unipole billboards were added.  

The change in foreign exchange rate led to a decrease in the value of the contract in Saudi currency from SAR 9.26 million to SAR 6.16 million. 

In August 2022, Al Arabia was awarded a SAR 9.26 million licensing contract for the exploitation of 17 sites on Egypt’s North Coast, according to Argaam. 

In December 2022, the company said it was finalizing due diligence works to rent sites for billboard installation with an 89% coverage of bridge sites in El-Alamein City, Egypt. 

Source : Argaam