Logo ofAbdullah Al Othaim Markets Co.
Abdullah Al Othaim Markets Co.signed on April 20, a contract with Abdullah Al Othaim Investment Co. to renew the lease of a commercial complex located on land leased from the General Organization for Social Insurance (GOSI) in Dammam. 
For more news on listed companies
In a statement to Tadawul today, April 21, the company announced that the contract is valued at SAR 633.7 million over a 15-year period. The annual rent amounts to SAR 39 million, excluding value-added tax (VAT), with a compounded 4% increase every three years.
The renewal period begins after the current contract expires on June 9, 2028, the statement noted.
Al Othaim expected to realize a profit of approximately SAR 300 million over the entire contract term.
In addition, revenues and expenses are projected to be recorded from the contract’s signing date until the end of the renewed term in accordance with the International Financial Reporting Standard (IFRS 16).
The retailer explained that the lease contract for GOSI’s land is valued at SAR 331.5 million (not including value-added tax) over the 15-year period. The contract begins on June 9, 2028.
Logo ofAbdullah Al Othaim Markets Co.
Abdullah Al Othaim Markets Co.signed on April 20, a contract with Abdullah Al Othaim Investment Co. to renew the lease of a commercial complex located on land leased from the General Organization for Social Insurance (GOSI) in Dammam.
For more news on listed companies
In a statement to Tadawul today, April 21, the company announced that the contract is valued at SAR 633.7 million over a 15-year period. The annual rent amounts to SAR 39 million, excluding value-added tax (VAT), with a compounded 4% increase every three years.
The renewal period begins after the current contract expires on June 9, 2028, the statement noted.
Al Othaim expected to realize a profit of approximately SAR 300 million over the entire contract term.
In addition, revenues and expenses are projected to be recorded from the contract’s signing date until the end of the renewed term in accordance with the International Financial Reporting Standard (IFRS 16).
The retailer explained that the lease contract for GOSI’s land is valued at SAR 331.5 million (not including value-added tax) over the 15-year period. The contract begins on June 9, 2028.
