MIS Arabic: The volume of projects under implementation amounts to $5.1 billion over 5 years

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Ibrahim Al-Muammar, Vice Chairman of the Board of Directors at Al-Muammar Information Systems Company (MIS), said that the financing of the Humain contract will be done through short-term banking facilities from local banks during the project implementation period.

Al-Muammar added in an interview with Al Arabiya Business that the Humain contract supports the growth of the company’s revenues by more than 100% during the second half of this year, with expectations of achieving similar growth during 2027 and the first half of 2028, explaining that implementing work orders related to the company’s contracts will enhance its financial performance, leading to fundamental changes to the company’s profitability and financial position during the coming period.

He explained that the volume of current projects under implementation amounts to about $5.1 billion (19 billion Saudi riyals), and most of them are expected to be implemented within the next 36 months, while the implementation period of some projects extends to five years.

Regarding financing these projects, Al-Muammar said that the company relies on short-term bank facilities associated with the project implementation stages, confirming its success in securing the required financing from several local banks.

He pointed out that the volume of financing and credit facilities available to the company exceeds $1.33 billion (5 billion Saudi riyals), with work being done to conclude new agreements to increase the volume of credit available, pointing to the strength of the relationship between the company and local banks and the presence of demand for providing facilities to finance data centers and the company’s core businesses.

Regarding the profitability of data center projects, Al-Muammar explained that their profitability margins are better than those of traditional businesses, given the nature of these projects, their complexities, and the volume of business associated with them, noting that profitability margins exceed approximately 14%.

He added that the company is currently implementing projects for data centers with a total capacity of about 300 megawatts, considering that this size reflects the breadth of its work in this field.

Regarding the growth strategy, Al-Muammar said that the company is focusing on four main axes, which include developing its core information and communications technology business at rates ranging between 15% and 20%, acquiring a share of no less than 20% of the data center market available in Saudi Arabia, expanding data center management and facilities management services, in addition to developing financial technology businesses and investing in available opportunities such as the company’s investment in “Open AI” and “Anthropic,” in addition to other investment opportunities.

Al-Muammar expected that this strategy would contribute to doubling the company's business to a very large extent, which would reflect its profitability and financial performance.

Regarding the financing structure, Al-Muammar stressed that the company’s approach is to continue relying on loans and bank facilities as long as conditions permit, with the aim of improving returns for shareholders and investors. He added that resorting to increasing capital will continue to be an option to be considered when financing challenges arise, in accordance with the necessary procedures and approvals.

Regarding cash distributions, he explained that the Board of Directors proposed a dividend distribution policy approved by the General Assembly at a rate of 50%, taking into account cash flow needs, financing requirements and bank conditions. He pointed out that the company distributed one riyal per share for the first quarter, and that the Board of Directors will take the appropriate decision regarding the distributions for the coming quarters, while continuing the trend towards maintaining the minimum distributions that were approved in the first quarter.