“Masar”: Cancellation of a land contract worth 265 million riyals due to the buyer’s violation of the terms of the deal
Umm Al-Qura Development and Reconstruction Company (the owner, developer and operator of the Masar Destination Project) announced that on January 25 of this year, it had terminated the contract to sell a plot of land to Tamouh Al-Khaleej Financial Company, due to the buyer’s breach of one of the fundamental contractual obligations requiring termination in accordance with the terms and conditions of the contract.
The company said in a statement on "Saudi Arabia trading"Today, Monday, the expected financial impact as a result of canceling the sales contract is a decrease in revenues for the year 2025 by an amount of 264,943,000 million riyals and a decrease in net profit by an amount of 119,025,870 riyals, noting that there is no material impact on the targeted levels of profitability during the period.
She added: "In addition, and given the attractiveness of investing in Masar’s destination and the strong demand for investment opportunities available there, Umm Al-Qura Development and Reconstruction Company is confident in its ability to implement another deal later for the same plot of land with another investor."
The company had signed a contract on June 30, 2025, to sell plots of land with an area of 2,703.50 square meters within the Masar destination project in Makkah Al-Mukarramah, to Tamouh Al-Khaleej Financial Company at a value of 264,943,000 riyals (not including taxes and fees, which are borne by the buyer).
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