Riyadh – Mubasher: The board of Saudi Company for Hardware (SACO) received a statement of claim on 2 August 2026, regarding a commercial arbitration case filed by Astra Food Company Limited.
The dispute involves a franchise rights licensing agreement between the two parties, according to a bourse disclosure.
Astra Food is seeking a total payment of SAR 41.33 million. The claimant is also requesting legal fees equivalent to 5% of the claim value, alongside future arbitration costs.
The dispute centers on the duration and termination of the franchise agreement, as well as associated financial implications involving bank guarantees, inventory, and compensation claims.
SACO for Hardware stated that the claims do not constitute an admission of liability and that it maintains its full legal rights and defenses.
The company has appointed specialized legal counsel to represent its interests and file a formal response before the arbitration tribunal.
Meanwhile, the potential financial impact cannot be reliably estimated at this stage as the proceedings are in their preliminary phase.
SACO confirmed there is currently no material impact on its ongoing business operations. Further developments will be disclosed as they occur.
