Saudi Fisheries terminates memorandum of understanding with Aqua Bridge, sells controlling stake in aquaculture firm

Saudi Fisheries Company (SFC) has terminated a memorandum of understanding (MoU) with fellow Saudi Arabia-based seafood firm Aqua Bridge Farms Company, within which the two firms were set to commence formal negotiations for a binding business partnership.

SFC has struggled financially for several years running, and courting Aqua Bridge was one of several measures the firm had hoped would turn its poor performance around by increasing trade volumes, improving operational efficiency, and ensuring its sustainability after auditors said the company’s future viability is in doubt.

Previously, SFC termed the proposed partnership with Aqua Bridge as “a strategic alliance” that would “bring targeted investments, operational efficiencies, and industry expertise to enhance aquaculture operations.”

With the partnership now terminated, however, SFC has had to resort to other measures to turn around its poor financial performance, including the sale of a 51 percent controlling stake in Al-Haridah National Aquaculture Company to the Saudi Arabian Rubyan Aquaculture (SARA) National Trading Company for SAR 33.2 million (USD 8.8 million EUR 7.6 million) in late October.

The sale entails the transfer by SFC of the project’s land lease, licenses, assets, contracts, and related rights.

“This includes enabling SARA National to manage the company and appoint a manager, in accordance with the draft articles of association following the transition to a simplified joint stock company,” SARA said in a statement.

The sale is just one of several actions SFC has taken to slow its runaway losses. 

These include creating a new aquaculture company in late 2024, betting that a government goal to increase fish-farming output along the country’s 2,600-kilometer coastline will pan out.

Another move came in July of this year, when SFC applied to the Saudi Capital Markets Authority for approval to increase its share capital through a rights issue with a value of SAR 334.9 million (USD 89.2 million EUR 76.4 million). It also announced plans to diversify its investment portfolio to other economic sectors to cushion itself against the effects of the frequently fluctuating Saudi seafood market.

Nevertheless, losses have continued, and SFC has experienced heavy personnel turnover.

In May, SFC fired CEO Mahmoud Abdel-Hay and announced Rayan Mohammed Al-Mansour as the new CEO, marking the fourth such change in under three years.