Al Battal Factory Company announced in an official statement significant developments regarding the accidental incident that occurred at one of its industrial facilities in Dammam. The company revealed that it had received an official letter from the certified loss adjuster (Matthews Daniel), containing the final assessment of the insurance claim for damages resulting from the fire that broke out on July 4, 2025.
Details of financial entitlement and settlement
The company explained in its statement that, based on the technical and financial assessment approved by experts, the net compensation entitlement was determined to be a total of SAR 21.82 million . This estimate reflects the extent of the physical damage and the repair costs necessary to restore the facility to its previous operational condition.
In the context of cash flow management, the company noted that it had previously received an advance payment of SAR 6 million , which helped cover immediate needs following the incident. Accordingly, the net remaining amount due to the company, based on the final valuation, is SAR 15.82 million .
Conditions for disbursing remaining entitlements
The letter from the loss adjuster indicated that the final settlement and disbursement of the remaining amount are subject to a set of standard procedures followed in the industrial insurance sector. These procedures require the completion of all necessary technical requirements and documentation in accordance with the terms of the insurance policy, foremost among which is providing proof of the actual commencement of rehabilitation and repair work on the damaged facility.
The importance of insurance in the sustainability of the industrial sector
This announcement reflects the importance of insurance coverage for industrial facilities, particularly in vital cities like Dammam, which is the industrial heart of Saudi Arabia. Insurance compensation plays a pivotal role in ensuring business continuity, enabling companies to overcome emergencies and rebuild damaged assets without significantly impacting the company's financial solvency or shareholders' equity.
Loss assessment procedures through specialized global companies such as (MatthewsDaniel) are an essential part of the transparency and reliability system that governs the relationship between industrial companies and the insurance sector, ensuring a fair assessment of damages that is consistent with international standards.
Expected economic and operational impact
This financial settlement is expected to have a positive impact on Al Battal Factory's financial statements in the coming periods, providing the necessary liquidity to expedite maintenance and restart operations. The company's swift response and initiation of settlement procedures is a positive indicator of management's efficiency in handling crises and operational risks.
Economic experts confirm that restoring the damaged facilities to full operation not only serves the company, but also supports the local economy in the Eastern Province by maintaining supply chains and stabilizing production in the industrial sector.
