The duration of the two contracts is 20 years, and they will be subject to final approval by the Board of Directors of the Red Sea International Company, according to two disclosures from the Saudi Airlines Catering Company to the Saudi stock market (Tadawul).
The two agreements come within the framework of the Saudi Airlines Catering Company’s plan – in which the state corporation of Saudi Arabian Airlines is the largest shareholder – to attract investment opportunities in new tourist and industrial areas and cities, while the Saudi government seeks, within its Vision 2030, to increase the contribution of the non-oil sector to the gross domestic product.
Details of the two agreements
The value of the first agreement is 6.3 billion riyals, and it relates to the design, construction and operation of a central catering unit, to produce and supply meals for hotel and tourist resort employees, in addition to other facilities and sectors located within the Red Sea project.
The Red Sea International Company is the developer of the Red Sea project, which is a tourist destination within the Kingdom’s Vision 2030. The project includes the development of tourist resorts on more than 50 natural islands.
The second agreement, with a value of 2.7 billion riyals, relates to the design, construction and operation of a central laundry to provide laundry services for hotels, tourist attractions, facilities and other sectors located within the Red Sea project.
Saudi Airlines Catering Company expects that the two deals will have a positive impact on its financial results during the third quarter of 2025, and contribute to the sustainability of the company’s operations, increase cash flow, expand its business and diversify its operations.
The Saudi Airlines Catering Company, established in 1981, provides support and hospitality services to airlines and other companies in other sectors, including food catering services, menu planning, frozen meal production, lounge management, commercial laundry, and security services.
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