BAAN Holding given notice to terminate SAR 760 million NEOM catering contract
BAAN Holding Group
has received a formal notice from Alfa Facility Management Co. (AFM), a
subsidiary of Alfanar Group, to terminate a catering services contract related
to the NRC26 project at NEOM.
The notice was issued on September 14, with the termination
scheduled to take effect on September 30, 2026, according to a statement
released by BAAN on the Saudi Exchange (Tadawul).
BAAN said it will continue providing catering services under the
agreement and meeting its contractual and operational obligations until the
termination date.
The company clarified that the termination is limited to the
catering services contract covering the NRC26 project sector. It said the
decision does not currently affect its other businesses or operations in other
sectors of NEOM.
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BAAN added that it will continue to execute its existing projects
in accordance with the terms of its signed agreements.
According to data published by Argaam, BAAN was awarded the
catering contract by AFM in August 2024 to provide food services at a
residential complex within NEOM. The contract was valued at approximately SAR 760 million.
The termination comes as NEOM continues to advance a wide range
of infrastructure, residential, hospitality and industrial developments across
the northwest of Saudi Arabia. BAAN’s latest announcement indicates that its
other NEOM-related activities remain unaffected by the termination of the NRC26
catering agreement.
Source:
argaam
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