Saudi Arabia: Red Sea Global receives land for Madinah Investment Project; shares rise

 

Saudi Arabia: Shares of Red Sea Global rise after receiving land for Madinah Investment Project

Red Sea Global announced that it has officially received a 63,088-square-meter plot of land in Madinah for the development of a new investment project, following the completion of all procedures required to approve the investment contract with the Madinah Region Municipality through the "Furas" platform.

According to a statement filed with Tadawul Saudi Arabia, the contract became effective on July 1, 2026, the date on which the land handover report was signed. The agreement grants Red Sea Global the right to develop the site under a 50-year lease, with contractual obligations commencing immediately after the completion of statutory payments and electronic acceptance of the agreement.

 

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The project site is located at the intersection of Omar ibn al-Khattab Road and Abd al-Harith ibn Zayd al-Dhubbi Road in Madinah. The development will include the construction, operation, and maintenance of a multipurpose commercial building. The company had previously announced on October 29, 2025, that it had secured the lease contract for the investment project.

Red Sea Global stated that the total lease value is approximately SAR 161.95 million, excluding value-added tax, representing the total rental payments over the entire 50-year contract period.

The company noted that the financial impact of the agreement began to be reflected in the first quarter of fiscal year 2026, coinciding with the commencement of development and operational activities at the site. It added that any material updates regarding the project will be disclosed in accordance with applicable regulatory requirements.

Following the announcement, Red Sea Global (TADAWUL: 4230) shares rose 1.27% to approximately SAR 25.54 during trading on the Saudi stock market.

 

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The project forms part of Red Sea Global's broader strategy to expand its portfolio of long-term investment developments, diversify revenue streams, and strengthen its real estate assets, supporting the company's long-term operational growth.

Source: www.arabictrader.com