Al Arabia inks SAR 563.2M ad-lease deal for Riyadh Bus with revenue sharing

Arabian Contracting Services Co. (Al Arabia) signed an investment and leasing agreement on May 1 with the Royal Commission for Riyadh City (RCRC) for interior advertising spaces across the King Abdulaziz Project for Riyadh Public Transport, covering both trains and buses.

According to a statement on Tadawul, the contract includes revenue sharing, in addition to contractual fees amounting to SAR 563.2 million, excluding VAT.

The contract covers the operation of 3,666 billboards, marking a qualitative shift in the advertising sector, particularly in the Riyadh public transportation project, as the company seeks to expand its advertising portfolio using the latest billboard technologies.

The 10-year contract included a six-month preparation period, and the financial impact is expected to be shown in the third quarter of 2025.

There are no related parties to the contract, Al Arabia noted.

The contract is part of Al Arabia’s broader strategy to grow its advertising operations and enhance the integration of its network across Riyadh. The company holds exclusive rights to interior advertising within the King Abdulaziz transport project, as well as outdoor advertising throughout the capital and billboards at King Khalid International Airport (KKIA), supporting its market share expansion.

The agreement reflects Al Arabia’s focus on innovation, operational efficiency, and sustainability while aiming to meet growing market demand and improve the customer experience.

Last December, Al Arabia had been awarded a 10-year contract by the RCRC to invest in and lease interior advertising spaces within the King Abdulaziz Project for Riyadh Public Transport (trains and buses), Argaam earlier reported.