Saudi Telecom to book $166m gain on land transfer to gov’t

Telecom operator says it will appeal against the valuation of the land in bid to get more compensation
Saudi Telecom to book $166m gain on land transfer to gov’t
By Reuters
Tue 23 Dec 2014 01:30 PM

Saudi Telecom Co said on Tuesday it would book a 621 million riyal ($166 million) gain in the fourth quarter of this year due to expropriation of some of its land holdings by the government.

The company originally announced in June that the government had seized a 1.05 million square metre plot in the Al Faisaliah district of Riyadh with a book value of 105.3 million riyals.

On Tuesday, Saudi Telecom said the government had begun transferring ownership of the land in exchange for compensation of 726.3 million riyals.

It added that it did not think the compensation amount valued the land fairly, so it would appeal the decision and announce any changes to the compensation in future.

Land in Al Faisaliah is worth 1,300-1,700 riyals per square metre in the old part of the district and 1,800-2,700 riyals in the ring road industrial zone, consultants JLL told Reuters in June. Such estimates suggested the land seized from STC could be worth between 1.36 billion and 2.83 billion riyals.

For all the latest tech news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.

Subscribe to our Newsletter

Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.