Riyadh—Mubasher: Tabuk Agricultural Development Company (TADCO) has signed a 10-year investment contract for its grape orchards with Ruwad Alsinaa Waltatweer Company.
The SAR 23.35 million agreement aims to optimize TADCO’s assets and boost cash flows, according to a bourse filing.
The contract, signed on 30 January 2026, will be implemented in two phases: the first covers 123 hectares until 2029, followed by an expansion to 196 hectares for the remainder of the term.
Over the past decade, TADCO’s grape orchards suffered accumulated losses of SAR 57.18 million, averaging SAR 5.70 million annually.
Meanwhile, the investor will assume all operating costs, turning a loss-making grape segment into a sustainable source of income.
The partnership is expected to stabilize rental cash flows, enhance financial performance indicators, and maximize the value of the company’s invested assets, which currently hold a book value of SAR 8.50 million.
The financial benefits and operational improvements from this investment will be realized throughout the 10-year contract period, starting in the first quarter (Q1) of 2026.
In July 2025, TADCO submitted an application to the Capital Market Authority (CMA) seeking approval to reduce its capital by 52.94%.
