In a strategic move that enhances the presence of Saudi companies in regional markets, the Arab Company for Technical Contracting (Arabia), listed on the Saudi Stock Exchange, announced that its subsidiary, Arabia Out of Home Digital, has concluded three important contracts with Majid Al Futtaim Properties, with a total value of SAR 54 million (excluding VAT).
Details of the deal and strategic partnership
According to a statement published on the Saudi Stock Exchange (Tadawul) website on Wednesday, these contracts grant the subsidiary (an Emirati company 75% owned by Arabiya) exclusive rights to use and operate digital advertising screens located in Majid Al Futtaim's network of shopping malls in the United Arab Emirates. The contracts are for a three-year term, with each contract structured as a one-year agreement renewable within the specified timeframe.
Dimensions of regional expansion and the importance of the UAE market
This move directly reflects the company's expansion strategy, which aims to move beyond the local market and diversify revenue streams across promising Gulf markets. The UAE's outdoor advertising market is one of the most dynamic and fastest-growing in the region, driven by high consumer spending and a well-developed retail and entertainment infrastructure.
The partnership with Majid Al Futtaim is particularly significant, as the group is one of the leading operators of shopping malls, integrated communities, and retail outlets in the Middle East, Africa, and Asia. Its portfolio includes iconic shopping malls that attract millions of visitors annually, providing Arabia with high-view advertising platforms and enhancing its ability to deliver digital business environment (DOOH) solutions to global brands.
Digital transformation in the advertising sector
This agreement reflects the growing focus on indoor digital advertising in shopping centers, a sector experiencing rapid growth compared to traditional static billboards. These technologies allow for more precise audience targeting and offer greater flexibility in displaying advertising content, thus increasing the return on investment for both advertisers and the operator.
Financial impact and timeline
The company explained in its statement that the financial impact of these contracts will begin to appear in the company's financial statements starting from the first quarter of 2026. This timeline reflects the company's long-term planning to establish its foothold in the UAE market and ensure the operational infrastructure is ready to maximize the benefit from these new advertising assets.
