Riyadh – Mubasher: Naqi Water Company has announced a series of developments regarding the construction of its new manufacturing facility in Riyadh, including the signing of a contract addendum for additional works and a revision of the project completion schedule.
In a disclosure to the Saudi Exchange (Tadawul), the company confirmed that it has expanded the scope of the project to enhance operational readiness and accommodate future production requirements.
The additional works are valued at SAR 1.22 million, excluding Value Added Tax, which supplements the original contract value previously reported at SAR 16.52 million.
The newly signed addendum focuses on critical structural and technical upgrades intended to optimize the facility's output. A primary component of these works involves increasing the operational floor space, specifically the expansion of the mezzanine level. This area is designated for the installation of packaging machinery, and the increased space is expected to facilitate higher production volumes and improve the efficiency of the packaging process.
Furthermore, the addendum includes a significant upgrade to the factory’s electrical infrastructure. This technical enhancement involves updating the main electrical circuit breaker and increasing the total available power capacity.
These improvements are designed to support the heavy energy demands of current production lines while ensuring the infrastructure is capable of powering future machinery as the company scales its operations.
Despite the long-term benefits of these upgrades, the company noted that the project timeline has been extended.
Naqi Water now expects the delivery of the factory to take place during the first half (H1) of 2027. This delay is attributed to the time required to implement the additional construction and electrical works, as well as logistical challenges that have affected the supply of necessary construction materials.
The company stated that these supply chain issues were driven by external procurement conditions and the specific procedures associated with high-specification materials.
As a result of the revised delivery date, the anticipated financial impact of the Riyadh factory project on the company’s financial statements has also been moved to H1-27. The company emphasized that the delay is a direct result of these developmental improvements aimed at ensuring the facility meets high operational standards upon launch.
The disclosure also provided transparency regarding the governance of the contract, identifying it as a related party transaction. The contract addendum was signed with Advanced Architect Company.
The company clarified that a major shareholder holding a 50% stake in Advanced Architect Company also owns 50% of Suqia United Group, which in turn holds a 35% stake in Naqi Water Company.
Naqi Water confirmed that the transaction was approved in accordance with its internal policies and is compliant with the regulations and rules set forth by the Capital Market Authority (CMA) regarding related party dealings.
The company continues to work toward completing the project in line with the updated technical requirements. These developments reflect Naqi Water’s strategic focus on building a robust infrastructure that can sustain its growth objectives and increase its overall production capacity within the Saudi market.
