In an official disclosure, Global Leaf Environmental Services announced a significant amendment to its contract with Red Sea International, reducing the scope of the mangrove planting project. Under the new amendment, the target number of trees has been reduced from two million to one million, resulting in a decrease in the overall contract value of over 40%.
Details of the amendment and financial impact
The company explained in its statement that this change will directly affect the recognition of expected revenues, as the revenues will not be recorded as planned in the previous announcement published on the Saudi Stock Exchange (Tadawul) website on April 21st. The original contract represented significant strategic value for the company, with its value at the time estimated at over 45% of the company's total revenues for the previous year. Al-Leef indicated that the financial impact of this reduction will be reflected in the financial statements for both halves of 2026, and affirmed its commitment to disclosing any subsequent material developments in accordance with applicable regulations.
The context of sustainability and Red Sea projects
This project comes as part of the massive environmental efforts led by The Red Sea International, the developer of one of the most ambitious tourism projects within the Kingdom’s Vision 2030. The Red Sea destination aims to set new standards in regenerative tourism, committing to achieving a Net Positive Conservation Benefit of up to 30% by 2040. Mangrove planting is an integral part of this strategy, given its vital role in enhancing biodiversity and protecting coastlines.
The importance of mangroves in the Saudi Green Initiative
Mangrove planting projects are gaining paramount importance at the national and regional levels, aligning with the goals of the Saudi Green Initiative, which aims to plant 10 billion trees across the Kingdom in the coming decades. Mangrove forests are known as natural blue carbon sinks, possessing a superior capacity to absorb and sequester carbon, even exceeding that of tropical forests, making them a powerful tool in combating climate change. Despite the reduction in the scope of this specific decade, the Kingdom and its major companies remain steadily progressing towards expanding green spaces and restoring coastal ecosystems to ensure a sustainable future.
