MEPCO Demands SAR 77.3 Million from Saudi Ministry and National Water Company

Middle East Paper Company (MEPCO) filed a lawsuit before the Administrative Court in Jeddah, represented by the Board of Grievances, on October 7, 2026, claiming compensation of SAR 77,258,504.80 for expropriated land, according to a disclosure published by the company on Saudi Tadawul.

The company stated in its disclosure that it relies on a ruling issued by the Court of Appeal that invalidated a previous valuation of the land amounting to SAR 2,601,864, in addition to a rental amount of SAR 8,007,407.20 determined by an alternative committee, which it asserts it has not received to date. This indicates that the dispute revolves around the land value on one hand, and overdue rental entitlements on the other.

The lawsuit is filed against a Saudi ministry and the National Water Company, according to the same disclosure. The company did not reveal additional details regarding the circumstances of the expropriation or the expected timeline for hearing the case before the Administrative Court.

MEPCO reported that the financial impact of this lawsuit cannot be determined at present, and that it will announce any material developments in due course. Investors in the Saudi market monitor such cases as they could impact the company's results if a ruling is issued in its favor or against it in upcoming litigation rounds.

What do these terms mean?

Expropriation: A procedure in which the state forces a property owner to relinquish it for public benefit in exchange for financial compensation.

Board of Grievances: The administrative court in Saudi Arabia that hears cases between government entities and individuals or companies.

Disclosure: An official statement required from listed companies when an event occurs that affects the stock price.

Real Estate Valuation: An estimation of the value of land or property by a specialized body, serving as the basis for calculating compensation upon expropriation.