The Clap
Arabian Internet and Communications Services Company (Solutions) intends to operate smart car parks in Riyadh for ten years.
What
Solutions has signed a revenue-sharing agreement with “Remat Al-Riyadh Development” Company to establish, manage, and operate “Smart Public Parking” spaces.
So What
The contract stipulates providing the latest technologies and digital platforms, such as smart sensors and mobile applications. This is part of the first phase of the “Smart Public Parking” project, targeting 164K public parking spaces, covering 12 areas in the Saudi capital.
The anticipated project aims to enhance the urban landscape and quality of life in Riyadh.
Some Context
Solutions stated that the agreement’s value may exceed 5% of its revenue, according to its audited annual financial statements for 2022. The revenue value is not fixed and depends on the scale of operations, with the company receiving a percentage of it.
The financial impact is expected to appear on the financial statements starting from the third quarter of the current year.
Now What
Hussein Al-Raqib, the Director of Zad Consulting Center, stated in an interview with Al Arabiya that, based on a simple feasibility study for Solutions’ contract, it represents a total of nearly SAR 440 million. This means the company will achieve an annual net profit of SAR 80 million after operating expenses and parking land rent.
Al-Raqib also expects the company to recover its investments within 5 years, seeing it as a “promising investment.” He added that in the event of the project’s success in Riyadh, it will expand to various regions of the Kingdom.
