Maharah Human Resources, a leading company in the Saudi stock market, announced a major strategic achievement by winning a large tender to provide cooked meals for inmates in prisons and detainees in various security departments and centers throughout the Kingdom of Saudi Arabia. The company stated in an official statement published on the Saudi Stock Exchange (Tadawul) that the project is valued at SAR 3.37 billion and the contract extends for three years.
The contract was awarded by the General Directorate of Prisons, through the government's "Etimad" platform for tenders and procurement, to the Saudi Health Systems Company, a subsidiary in which Maharah holds a significant stake. Specifically, 40% of the Saudi Health Systems Company is owned by Masar Al-Numu Investment Company, which is wholly owned by Maharah Human Resources. This makes this win a direct and significant financial impact on Maharah's results and market performance.
General context and importance of the project
This contract aligns with the broader government initiatives under Saudi Vision 2030 , which aim to enhance public-private partnerships (PPPs) and improve the efficiency of government services. Outsourcing essential services such as catering and food provision in correctional facilities to specialized private sector companies allows government entities, such as the General Directorate of Prisons, to focus on their core responsibilities of security, rehabilitation, and reform.
This project also reflects the Kingdom's commitment to improving the conditions of inmates and providing them with the requirements for a dignified life, including healthy and balanced nutrition, in line with international human rights standards for penal and correctional institutions. The "Etimad" platform, through which the competition was launched, is a key tool for enhancing transparency and fairness in government procurement, ensuring the selection of the most efficient and highest-quality bids.
The economic and strategic impact on “skill”
Domestically, this contract represents a significant step forward for Maharah, as it diversifies its revenue streams and expands its operations beyond the traditional human resources sector, entering the large-scale support, operations, and catering services field. This success is expected to positively impact the company's financial performance over the next three years, bolstering investor confidence in its expansion strategy.
Economically, a project of this scale stimulates multiple sectors, from food suppliers and transportation and logistics services to creating new job opportunities. It highlights the ability of Saudi companies to efficiently execute large-scale government projects, thereby supporting the national economy and contributing to the achievement of sustainable development goals.
