Saudi Ground Services Wins SAR 6.3 Billion Five-Year Saudia Contract, Shares Jump 2.81%

Saudi Ground Services Company (Tadawul: 4031) told the market on Sunday that Saudia had awarded it a five-year contract worth SAR 6.3 billion to handle ground, ramp, and passenger services for the carrier's domestic and international flights across every airport in the Kingdom. SGS shares closed the session up 2.81% at SAR 32.20, among the day's stronger movers on a TASI that finished 0.46% higher at 11,077.91.

The award letter covers the core of what SGS does: aircraft turnaround on the ramp, baggage and cargo handling, and passenger processing at check-in and the gate. The company said the financial impact will start showing from the second quarter of 2026.

This is a renewal at a higher value. The contract it replaces was a five-year, SAR 5.9 billion deal that ran from April 2021 to the end of March 2026. The new award lifts the headline value by roughly SAR 400 million, close to a 7% step-up over a comparable term, and locks in Saudia, the company's anchor customer, through 2031.

For investors the read is straightforward. Saudia is the single largest source of SGS revenue, so re-signing it clears the main contract-renewal risk that had hung over the stock and secures a multi-year revenue base. SGS spent the past year adding ground-handling work from other carriers, including Riyadh Air and flyadeal, but the Saudia relationship is still the foundation. The Q2 start date means the new pricing feeds into results from the current quarter onward.

Trading turnover on the main index reached SAR 3.98 billion on Sunday, with 189 stocks advancing and 67 declining.