Riyadh – Mubasher: Mouwasat Medical Services on Thursday announced signing a SAR 12 million agreement with Knowledge Economic City to purchase a plot of land in al-Madīnah al-Munawwarah project.

The medical services firm will use the land for establishing a residential facility for its workers in the new project at al-Madīnah al-Munawwarah with an initial cost of SAR 60 million, according to a bourse filing.

The value of the land plot will be paid on two tranches: the first was paid on the sidelines of inking the deal, while the second will be settled while receiving the document of the land plot’s ownership.

Mouwasat further explained the transaction was financed by its self-financing sources, while the deal’s financial impact is forecast to appear in the financial results of the first quarter of 2019.

On a separate statement, Knowledge Economic City expected that it will generate a profit of SAR 7.8 million after completing the deal which will be included in its Q1-19 results.

The contract is part of Knowledge Economic City’s plan to support the health sector.

In December 2016, Mouwasat inked a contract with Knowledge Economic City to purchase a plot of land in al-Madīnah al-Munawwarah project at SAR 50 million.

During the full-year 2018, Mouwasat Medical Services reported a 7% year-on-year growth in profits to SAR 360 million after calculating Zakat and Tax, from SAR 337 million.

By 11:02 am Saudi time, Mouwasat’s stock shed 0.38% to SAR 78.70, while Knowledge Economic City’s stock inched up 0.31%, reaching SAR 9.74.