Abdullah Al Othaim Markets said, with reference to its previous announcement about signing a non-binding memorandum of understanding (MoU) with AGAD United, a sister of ALBAIK Food Systems, that the documents related to the establishment of the new company have been signed and attested by the Ministry of Commerce and Industry.

The new Jeddah-based entity, named Al-Woustah Company for Food Services, operates with SAR 100 million capital, according to Tadawul website.

Al Othaim owns 25% of the capital, while AGAD holds 75%.

Al-Woustah is expected to start its operations in the second quarter of 2015. 

Al Othaim does not expect a major financial impact in 2015 since the project is still in the development stage.