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Red Sea International Co. (REDSEA) announced that its subsidiary, Fundamental Installation for Electric Work Co. Ltd., signed a SAR 352.6 million subcontract with Saudi Arabian Salini Co. to execute mechanical, electrical, and plumbing (MEP) works for a project in Diriyah. The contract, valued at SAR 352.6 million excluding VAT, spans 454 calendar days and involves supplying, installing, testing, and commissioning MEP systems. The financial impact of the project is expected to begin in Q2 2026.
This development highlights Red Sea International's growing involvement in major infrastructure projects in Saudi Arabia, particularly in the Diriyah region, which is a key focus area for Vision 2030. The contract size and long-term execution period could provide a tailwind for the company's revenue in the medium term. Traders may monitor the stock for volume changes or price reactions as the market digests the news, especially ahead of the project's financial impact in 2026.
For the broader Saudi equity market, this contract reinforces confidence in the kingdom's infrastructure spending. MENA investors should watch for updates on project milestones and potential follow-on contracts. The project's alignment with Diriyah's development could also attract interest from regional stakeholders. Key risks include delays in execution or broader economic headwinds affecting infrastructure budgets.
