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Addendum Announcement by Riyadh Cables Group Company Regarding the Latest Developments Related to Its Announcement on the Signing of a Memorandum of Understanding with the Syrian Sovereign Fund
| Element List | Explanation |
|---|---|
| Introduction | With reference to the announcement of Riyadh Cables Group Company published on the Saudi Exchange (Tadawul) website on 26/07/1447H, corresponding to 15/01/2026G, regarding the signing of an agreement with the Syrian Sovereign Fund—through its subsidiary (Riyadh Cables Company)—to manage, operate, and develop Syrian Modern Cables Company, the company wishes to clarify some details for its shareholders. |
| Date of Posting the Previous Announcement of Development on Saudi Exchange’s Website | 2026-01-15 Corresponding to 1447-07-26 |
| Hyperlink to the Previous Announcement | Click Here |
| Change on the Development | Agreement Signing Date: 14 January 2026 Contract Value: The contract is an Operations, Management, and Development Agreement under which Riyadh Cables Company will rehabilitate, operate, and develop the manufacturing plant of Syrian Modern Cables Company through the injection of capital investment amounting to approximately SAR 60 million over the term of the contract. This agreement supports production and operational activities through an integrated development program that includes the financing of working capital, modernization of production lines, enhancement of production and design capacities, and the transfer of technical knowledge and expertise from the Kingdom of Saudi Arabia. It also contributes to technology localization and the development of Syrian competencies. It has also been agreed that the annual profits or losses generated from the project shall be shared between Riyadh Cables Company and the Syrian Sovereign Fund, with a share of up to 40% allocated to the Syrian Sovereign Fund. Contract Term: 18 years from the date of signing, renewable upon mutual agreement of the parties. Financial Impact of the Change: The financial impact is expected to be reflected in the annual financial statements for the fiscal year 2026. |
| Financial Impact on the change | none |
| Additional Information | It has been agreed by both parties that the agreement will be implemented on a phased basis through four main stages, each with its own objectives, procedures, and key milestones. Transition from one stage to the next shall only take place after a comprehensive evaluation of all operational, technical, and financial aspects and the issuance of formal approval by both parties to proceed to the subsequent stage. This agreement will enable Riyadh Cables Company to utilize the facilities, assets, and machinery of Syrian Modern Cables Company to manufacture and sell cables in a manner that meets the requirements of the Syrian market. Revenues are expected to grow progressively in line with the operational phases and improvements in production efficiency, and subject to product mix, annual revenues may reach approximately SAR 750 million once the plant achieves its optimal operating capacity. |
The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.
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