Alqemam's SAR 19.9M Hail Deal Locks In 36-Month Revenue

Alqemam for Computer Systems Co. signed a 36-month information technology operation and maintenance contract with the Emirate of Hail Region on June 17. The deal is worth SAR 19.9 million, inclusive of VAT.

The company disclosed the contract in a statement to Tadawul, noting there are no related parties involved. Revenue recognition is expected to hit the income statement in the fourth quarter of 2026, the statement said.

Alqemam provides IT services, systems integration, and managed solutions to government and corporate clients in Saudi Arabia. The Emirate of Hail contract adds a three-year recurring revenue stream, extending visibility into the company's top line through late 2026. Government contracts are a core revenue driver for the firm, and the no-related-party disclosure suggests this is an arm's-length commercial agreement.

The timing of the financial impact – Q4 2026 – implies the contract's work and associated revenue recognition begin in the final quarter of this year or later, which aligns with a typical implementation schedule for IT maintenance engagements. The company did not specify whether the contract represents a renewal of prior work with the Emirate or new business.

Alqemam shares trade on Tadawul under ticker 7201.