Riyadh - Mubasher: CATRION Catering Holding Company has signed a long-term lease agreement with the Dammam Airport Company. The contract, which spans a 15-year duration, facilitates the listed group's expansion at King Fahd International Airport in Dammam.
Valued at a fixed base of approximately SAR 75.72 million plus variable revenue-sharing components, the agreement underscores the company’s strategic commitment to the Kingdom’s growing aviation infrastructure and its alignment with the objectives of Saudi Vision 2030.
Under the deal signed on 2 July 2026, CATRION will lease a designated site within King Fahd International Airport for the purpose of providing its comprehensive suite of catering and hospitality services.
This move is designed to bolster the company’s operational footprint in the Eastern Province, catering to the sustained increase in passenger traffic and flight movements at one of the Kingdom’s primary international gateways.
The financial structure of the agreement is divided into two primary components. CATRION has committed to a total fixed contract value of SAR 75.72 million over the 15-year term.
In addition to this fixed lease payment, the agreement includes a variable royalty fee based on the site’s performance. This variable component is set to begin at 3.50% of the total annual revenues generated from the site’s activities, escalating annually until it reaches a ceiling of 5.50%.
This performance-linked structure ensures a collaborative financial interest between CATRION and the Dammam Airport Company.
Strategically, CATRION noted that the agreement is a vital component of its broader sustainability and growth initiatives. By securing a long-term presence at King Fahd International Airport, the company aims to reinforce its leadership position within the aviation services industry.
The expansion is also framed as a direct contribution to the National Aviation Strategy, which seeks to enhance the Kingdom’s connectivity and service quality in line with the economic diversification goals of Saudi Vision 2030.
The 15-year tenure of the lease provides CATRION with a stable platform for long-term capital investment and service development at the airport. This duration reflects the company’s confidence in the long-term growth trajectory of the Dammam aviation market.
Operationally, the site will serve as a hub for CATRION’s diverse activities, allowing the firm to scale its services in tandem with the airport’s master plan and the projected rise in international and domestic travelers.
Regarding corporate governance and financial transparency, CATRION confirmed that there are no related parties involved in this transaction. The company also clarified that the financial impact of this agreement will be reflected in its future financial statements as operations commence and progress at the newly leased site.
This disclosure serves to inform shareholders and the broader investment community of the company’s latest efforts to secure high-value, long-term revenue streams within the regulated aviation sector.
The signing of this agreement marks a significant milestone for CATRION as it continues to navigate the evolving landscape of the Saudi catering and aviation support market.
By integrating fixed-cost stability with a revenue-sharing model, the company positions itself to benefit from the anticipated surge in regional air travel while contributing to the modernization of the Kingdom's airport facilities.
In the first quarter (Q1) of 2026, the group’s net profits attributable to the shareholders climbed by 7.53% to SAR 80.41 million from SAR 74.77 million in Q1-25.
