Taiba Holding Company announces that Al-Aqeeq Real Estate Development Company (Al-Ageeq), a closed shareholding company owned by Taiba, owns 89.9% of its capital and Arab Company for Tourist Zones (Arak) (86.81%) of its capital) signed a memorandum of understanding dated 17/10 / 1433H corresponding to 17/10/2012 with the company Knowledge Economic City – a public joint stock company – developer of Knowledge Economic City in Madinah, in order to establish a limited liability company is one of its most important purposes Develop, operate and manage a range of hotels and hotel apartments on land designated for this purpose The outline of Knowledge Economic City in Madinah with a capital of 300 million Saudi Riyals will be the share of Al-Aqeeq Company and I will see in it 50% (SR 150 million) representing 25% (75 million riyals each) The share of Knowledge Economic City Company shall be at the remaining 50% and shall be based in Medina.
It was agreed that the Arab Company for Tourist Areas (Arak) would manage and operate the hotels and hotel apartments after its completion. It was also agreed that the term of this Memorandum shall be six months from the date of its signature by the parties. It may be agreed to extend it in writing for any other period .
Since Taiba Holdings is contributing 5.74% of the capital of Knowledge City and Knowledge City and Taiba Holding is represented on the Board of Directors of Knowledge Economic City (MEC), this Memorandum of Understanding is treated with a related party. To meet the regulatory requirements issued by the Capital Market Authority and the Ministry of Commerce and Industry in this regard.