Naqi Water's SAR 1.2M Addendum Delays Factory to H1 2027

The simple take: Naqi Water is investing in a factory to increase capacity. Companies do this.

The better read: The addendum is small relative to the original contract, about 7%. The contractor is a related entity, and the timeline has already slipped well past the original expectation. The company did not say what the original delivery date was, so the length of the delay is unclear. The additional costs and delays come from extra development works that the company says will strengthen infrastructure and boost production capacity. That framing is standard. The key question is whether these overruns and delays will recur.

Investors should watch for two things. First, whether the total project cost stays within SAR 17.7 million or further addenda appear. Second, what production capacity the factory will add, since that determines the revenue impact. The related-party governance structure adds an extra layer of scrutiny. The major shareholder in the contractor also holds a meaningful indirect stake in Naqi Water through United Seqa Group, creating an obvious conflict on scope and pricing.

The next concrete milestone is H1 2027, when the factory is supposed to be ready. Between now and then, each quarterly report will show whether costs or timelines have changed. If they do, the market will have to weigh whether the expansion story still holds.