Riyadh – Mubasher: Saudi Logistics Services Limited, a subsidiary of Saudi Manpower Solutions Company (SMASCO), has signed a contract with the Ministry of Human Resources and Social Development.
The agreement, valued at an estimated SAR 80.70 million including value-added tax, involves the provision and operation of housing centers for domestic workers.
This finalization follows the initial project award announced earlier this year and marks a significant step in the subsidiary’s operational engagement with the Saudi government.
The formal signing of the contract took place on 29 June 2026. This follows the original award notification issued on 5 May 2026.
SMASCO confirmed that all necessary signatures were completed and a final copy of the agreement was received by the company on Thursday, 2 July 2026.
The contract is structured as a framework agreement with a total duration of two years, during which Saudi Logistics Services Limited will manage specialized facilities.
Under the terms of the agreement, the subsidiary is tasked with the comprehensive operation of housing centers specifically designed for domestic female workers who have been reported as absent or who have refused to work.
This initiative falls under the broader regulatory and social framework managed by the Ministry of Human Resources and Social Development to organize the domestic labor market and provide structured environments for workers during transitional or dispute periods.
From a financial perspective, SMASCO has provided guidance on when the revenue from this contract will begin to be recognized. The company expects the financial impact of the agreement to manifest in its financial statements starting from the third quarter (Q3) of 2026.
Given the two-year duration of the contract, the positive fiscal influence is projected to be distributed across the duration of the operational period.
SMASCO also clarified in its regulatory filing that there are no related parties involved in this transaction, ensuring that the contract was entered into under standard commercial and governmental procurement terms.
The company continues to expand its service portfolio through its specialized subsidiaries to meet the growing demand for manpower and logistical solutions in the Kingdom.
By securing this framework agreement, SMASCO’s subsidiary reinforces its position within the domestic labor support services sector, contributing to the institutional infrastructure required to manage the Kingdom’s labor market dynamics effectively.
