Riyadh – Mubasher: Saudi Ground Services Company (SGS) has announced the results of its Ordinary General Assembly meeting, where the shareholders approved a mandate for the board of directors to distribute interim dividends for the 2026 fiscal year.
The meeting was held on 8 June 2026 and resulted in the approval of all agenda items, including the ratification of several high-value service agreements with related entities such as Saudi Arabian Airlines (Saudia) and Flyadeal.
The shareholders reviewed and approved the board and auditor reports for the fiscal year ended on 31 December 2025.
A key resolution passed during the session was the authorization for the Board of Directors to distribute interim dividends to shareholders on a quarterly or semi-annual basis for the 2026 fiscal year. This move provides the company with the regulatory framework to manage shareholder returns more frequently throughout the upcoming year.
In addition to dividend authorizations, the assembly confirmed the appointment of Ernst and Young (EY) as the company’s external auditor.
EY will be tasked with reviewing and auditing the financial statements for the third quarter (Q3) and full year of 2026, as well as the first two quarters of 2027. The total professional fees for these services were approved at SAR 1.34 million.
Shareholders also ratified the board's decision to appoint Fahad bin Abdullah Mousa as a non-executive director. His appointment, which began on 23 August 2025, follows the departure of former director Captain Fahad bin Hamzah Sundi and will continue until the end of the current board term in May 2029.
Major Aviation Services Contracts
The meeting saw the approval of an extensive list of related-party transactions and contracts announced in 2025, highlighting the company’s integrated role within the Saudi aviation sector. The most significant agreement ratified was with Saudia for ground handling, passenger transport, and fueling services. This contract is valued at approximately SAR 1.16 billion and has a duration of five years.
In 2026, Saudi Ground Services received a major contract award from Saudia to provide comprehensive ground handling and passenger services across all airports in Saudi Arabia. This is executed through a five-year agreement valued at an estimated basis of SAR 6.30 billion.
Other major contracts in 2025 included a SAR 265.7 million agreement with Flyadeal for ground handling and fueling services over three years, and two separate contracts with Catrion Catering Holding Company totaling over SAR 110 million for various services.
The assembly also approved operational agreements with several other entities, including Saudi Arabian Logistics (SAL), Saudi Cargo, and the Saudi Royal Fleet. These contracts encompass a range of services such as equipment maintenance, airport staff training, and ground handling.
The board disclosed that these transactions involved indirect interests from board members Nasser bin Farooq Al Qawas, Fahad bin Abdullah Mousa, and Amer bin Saleh Al Khashail. However, the company emphasized that all agreements were executed on a strictly commercial basis without any preferential terms.
The comprehensive approval of these contracts and the interim dividend policy reflects the company’s focus on maintaining operational continuity and securing long-term revenue streams from its primary partners.
By formalizing these large-scale service agreements, Saudi Ground Services continues to solidify its position as a central service provider within the Kingdom’s aviation infrastructure while establishing a clear framework for corporate governance and shareholder compensation.
