The Arab Company for Technical Contracting, a leading company in the Kingdom’s outdoor advertising sector, announced a new strategic step to strengthen its presence in the capital by signing a contract addendum with Rimat Riyadh Development Company, the development arm of the Riyadh Municipality. This addendum extends the contract for operating and maintaining advertising panels on building facades in Riyadh for an additional six months, thus extending the contract until July 26, 2035, instead of the previous expiry date of February 10, 2034.
Background of the partnership and its strategic objectives
This step comes within the framework of a long-standing partnership between Al Arabiya, through its subsidiary Faden Advertising Agency, and Rimat Riyadh. The original contract, signed on May 30, aimed to establish, operate, and maintain advertising panels on building facades in various areas of Riyadh for a period of ten years. This extension underscores the flexibility of the contractual relationship between the public and private sectors, addressing the operational challenges the project has faced since its inception and granting the investor an additional paid grace period for preparation and construction, thus ensuring the project's execution to the highest quality standards.
The importance of the sector within the framework of Saudi Vision 2030
The outdoor advertising sector plays a pivotal role in developing the urban landscape of major cities like Riyadh. With the Kingdom's massive economic and social transformations under Vision 2030, Riyadh has become a global destination for business, tourism, and major events. Modern billboards contribute to enhancing the city's aesthetic appeal and provide a vital platform for businesses and brands to connect with a wider audience, thus boosting economic activity. Developing this sector is not only aesthetically pleasing but also a significant source of municipal revenue that can be reinvested in other development projects serving the residents and visitors of the capital.
Expected impact on the advertising market and the urban landscape
This extension is expected to have a positive impact on the stability and growth of the outdoor advertising market in Riyadh. It gives the Arabian Company more time to implement its development plans, ensuring the project's long-term sustainability and success. This collaboration also reflects Rimat Riyadh's commitment to supporting its private sector partners and removing obstacles for them, a fundamental approach to achieving sustainable development goals and transforming Riyadh into a smart and innovative city. Regionally, these successful partnerships solidify the Kingdom's position as an attractive and reliable investment environment, capable of executing large-scale infrastructure projects to world-class standards.
