Mobico Group shares jumped on Thursday after the transport group announced it had secured a major eight-year transport contract in Saudi Arabia worth €500 million.
Mobico Group’s long-suffering shareholders were due some good news and that has come in the form of a ‘major’ contract with the Kingdom.
The company’s ALSA subsidiary will operate the service through a joint venture with a local firm. It will operate 156 vehicles—126 of which are electric—serving Qiddiya, a new city being developed near Riyadh.
The agreement will help support local development plans in Qiddiya, one of Saudi Arabia’s flagship projects. Qiddiya is believed to become the country’s largest entertainment destination.
The contract covers park-and-ride facilities and shuttle services linking Riyadh with Qiddiya. It marks a significant expansion for ALSA in the kingdom, where the company has operated long-haul intercity routes in the southern region since October 2023.
Mobico described the deal as “capital-light”, suggesting limited upfront investment requirements.
One would think the deal puts Mobico in good standing for further contracts as Saudi Arabia undertakes ambitious development and infrastructure projects.
“This new contract, which meets our disciplined return hurdles, strengthens Mobico’s presence in the Middle East and showcases ALSA’s ability to win competitive contracts in large-scale overseas projects, positioning ourselves as a leading operator of innovative, sustainable transport services,” said Phil White, Executive Chair of Mobico.