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Riyadh – Arabian Contracting Services Company (Al Arabia) signed an advertising concession agreement with Umm Al Qura Development and Construction Company for the installation and operation of the billboards within the Masar master plan in Makkah Al-Mukarramah.
The business model of the 15-year agreement consists of revenue sharing or the annual minimum guarantee, whichever is higher, according to a bourse filing.
The agreement includes a total annual minimum guarantee of SAR 252.61 million distributed progressively from the fifth year to the fifteenth year of the agreement.
The number of contracted billboards amounts to 315 fully digital of various types and sizes distributed across different areas, including 34 billboards on bridges and tunnels and 80 billboards on internal elevators.
The billboard number can be increased upon approval from the two parties.
Situated on a total area of over 1.2 million square meters, Masar Makkah is a key project in Makkah Al-Mukarramah.
The project aims to create destinations with a civilised and exemplary design, considering the culture and authenticity of the Holy City of Makkah to become a main gateway route leading to the Holy Mosque in Makkah.
Furthermore, the financial impact of the agreement is set to be reflected in Al Arabia’s results starting from the first quarter (Q1) of 2025.
It is worth noting that Al Arabia’s net profit grew by 15.85% year-on-year (YoY) to SAR 318.23 million in 2023 from SAR 274.70 million.
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