Mohammed Al-Khariji, CEO of Arab Contracting Co. (Al Arabia)
Mohammed Al-Khariji, CEO of Arab Contracting Co. (Al Arabia), said that the delay in releasing the annual results was in the company’s favor, confirming that the first-quarter results will be released within the regular period. 
In an interview with Al Arabiya TV, Al-Khariji indicated that the reason for the delay in the announcement was due to the company’s recent award of large-scale, qualitative projects. These projects involved significant details that required the selection of a precise accounting standard to avoid any material discrepancies in results between contract years, he added.
This reflects the company’s actual results over the contract years, in line with annual performance, in consultation with the external auditor to ensure the correct selection of the standard, said the top executive.
Regarding the 15% decline in full-year profits, Al-Khariji pointed out that the major projects it recently won have not yet been fully operational, while the associated costs are only partially emerging, in addition to the impact of financing expenses.
The CEO explained that the accounting standard focuses on allocating a large portion of these costs in the first years of the contracts, after which they begin to decline.
He stated that the financing costs associated with the Faden Media deal are considered high and are currently being studied for restructuring and significant reduction, expecting the reduction in loan costs to be significantly reflected in Q1 2025 results after signing a refinancing agreement.
“The company is well established in the market, having won major projects over the past year in Riyadh, Dubai, and Cairo. These cities represent the key markets in terms of outdoor advertising volume,” said Al-Khariji.
He pointed out that the company is the largest in the region in the advertising market in terms of revenue, which puts it in direct competition with social media companies such as Google and Meta, indicating that winning major contracts in the region gives it an edge that enables it to obtain a larger market share.
The CEO also stated that Al Arabia is the only entity in the region capable of developing the advertising market, which still represents only about 1% compared to the global market, adding that he sees great potential to increase this percentage to 2-3%.
“Our primary goal is to considerably expand the network, which will achieve economies of scale in our business, strengthen our economic position, and significantly impact the profitability of new projects,” he said.
According to Argaam’s data, Al Arabia’s profits fell by 15% to SAR 271.3 million by the end of 2024, compared to SAR 318.2 million during the same period in 2023.
Mohammed Al-Khariji, CEO of Arab Contracting Co. (Al Arabia)
Mohammed Al-Khariji, CEO of Arab Contracting Co. (Al Arabia), said that the delay in releasing the annual results was in the company’s favor, confirming that the first-quarter results will be released within the regular period.
In an interview with Al Arabiya TV, Al-Khariji indicated that the reason for the delay in the announcement was due to the company’s recent award of large-scale, qualitative projects. These projects involved significant details that required the selection of a precise accounting standard to avoid any material discrepancies in results between contract years, he added.
This reflects the company’s actual results over the contract years, in line with annual performance, in consultation with the external auditor to ensure the correct selection of the standard, said the top executive.
Regarding the 15% decline in full-year profits, Al-Khariji pointed out that the major projects it recently won have not yet been fully operational, while the associated costs are only partially emerging, in addition to the impact of financing expenses.
The CEO explained that the accounting standard focuses on allocating a large portion of these costs in the first years of the contracts, after which they begin to decline.
He stated that the financing costs associated with the Faden Media deal are considered high and are currently being studied for restructuring and significant reduction, expecting the reduction in loan costs to be significantly reflected in Q1 2025 results after signing a refinancing agreement.
“The company is well established in the market, having won major projects over the past year in Riyadh, Dubai, and Cairo. These cities represent the key markets in terms of outdoor advertising volume,” said Al-Khariji.
He pointed out that the company is the largest in the region in the advertising market in terms of revenue, which puts it in direct competition with social media companies such as Google and Meta, indicating that winning major contracts in the region gives it an edge that enables it to obtain a larger market share.
The CEO also stated that Al Arabia is the only entity in the region capable of developing the advertising market, which still represents only about 1% compared to the global market, adding that he sees great potential to increase this percentage to 2-3%.
“Our primary goal is to considerably expand the network, which will achieve economies of scale in our business, strengthen our economic position, and significantly impact the profitability of new projects,” he said.
According to Argaam’s data, Al Arabia’s profits fell by 15% to SAR 271.3 million by the end of 2024, compared to SAR 318.2 million during the same period in 2023.
