Riyadh - Mubasher: Arabian Centres Company (Cenomi Centers) officially announced the signing of a major design and build contract for its upcoming Al Khobar Downtown Mall and Boulevard project.
The agreement, valued at approximately SAR1.33 billion (excluding VAT), was entered into with Lynx Contracting Company. This strategic partnership marks a significant milestone in the development of the company’s retail and lifestyle portfolio in the Eastern Province, with the project expected to be executed over a three-year timeline.
The contract, finalized on 28 June 2026, grants Lynx Contracting Company the comprehensive mandate to manage the design and construction phases of the Al Khobar Downtown Mall and Boulevard.
According to the disclosure, the scope of work is extensive, encompassing all architectural design, engineering, construction, procurement, and installation activities.
Furthermore, the contractor is responsible for the testing and commissioning phases, as well as securing all necessary regulatory approvals required for the project’s full operational readiness and final handover.
The execution period for the development is set at 36 months, commencing from the date the official notice to proceed is issued.
To ensure project integrity and adherence to timelines, the contractual agreement includes standard industry provisions regarding performance guarantees, insurance requirements, and liquidated damages for potential delays.
It also outlines specific protocols for change management and claims processing, ensuring that the project adheres to the agreed-upon commercial and technical standards.
From a financial perspective, Cenomi Centers expects the fiscal impact of this development to be reflected in its financial results throughout the duration of the construction period.
As capital is deployed into the project, the company’s asset base is projected to grow, aligning with its long-term strategy of expanding its footprint in the Saudi Arabian retail sector.
The transaction has been identified as a related-party contract, as several members of the Cenomi Centers Board of Directors hold direct or indirect interests in Lynx Contracting Company.
These members include the Chairman of the Board, Fawaz Al Hokair; the Vice Chairman, Salman Al Hokair; and the Managing Director, Kamil Al-Qalam. In compliance with corporate governance standards and the Saudi Companies Law, the company confirmed that the contract was awarded following a standard business process.
The terms were established on an arm's-length basis, mirroring prevailing market conditions without any preferential advantages. Furthermore, the interested board members abstained from voting on the resolution, and the contract will be presented to the General Assembly for shareholder approval.
The board members of Cenomi Centers recommended a capital raise of 8.98% through the issuance of bonus shares to existing shareholders and the allocation of new shares for a forthcoming employee incentive scheme.
