Blab Business
Multi Business Group Receives Termination Notice from Leejam Sports for KAFD Sports Club Project
When a high‑profile sports‑club contract in Riyadh’s flagship financial district vanished overnight, the ripple effects reached far beyond the construction site.
On June 21 2026, Multi Business Group Co. (stock code 9619) announced that it had received a termination notice from Leejam Sports Co. The letter, dated June 20 2026, formally cancels the contract the two companies signed in December 2024. The agreement covered the design, construction and finishing of a sports club in the King Abdullah Financial District (KAFD). Leejam’s rationale, as stated in the notice, is that the project failed to secure the design approvals required by the relevant authorities.
The contract’s value was significant. According to the letter, it exceeded 10 % of Multi Business’s 2023 topline. The company reported revenue of SAR 124.83 million in 2023, meaning the cancelled project represented a material portion of its earnings base. Multi Business said it is currently reviewing the notice from a regulatory and contractual standpoint and has not accepted the validity of its content. It added that no material costs have been incurred to date and that the final financial impact will be determined once the review is complete.
Leejam Sports Co., a Saudi sports‑industry firm that provides facilities and services, had previously announced a board resolution to distribute dividends for Q1 2026. Multi Business Group Co. is a listed construction and finishing company on the Saudi Exchange (Tadawul). The KAFD is a mixed‑use financial district managed by the King Abdullah Financial District Development and Management Company, a subsidiary of the Public Investment Fund.
The cancellation notice is significant because the project’s value represented a sizable portion of Multi Business’s annual revenue. The company’s statement indicates that it will announce any material developments once its review is complete. No additional costs or liabilities have been reported, and the company has not confirmed whether it will seek legal recourse or negotiate a settlement.
The letter’s reference to a “failure to obtain the required design approvals” suggests that the project may have encountered regulatory hurdles. KAFD projects are subject to a range of approvals from the district’s management and from municipal and national authorities. The absence of these approvals can delay or halt construction, as seen in other large‑scale developments in Riyadh.
Multi Business’s board has not issued a statement beyond the notice received. The company’s last earnings report, released in March 2025, highlighted its revenue growth and the completion of several finishing contracts. The cancellation of the KAFD sports‑club contract could affect the company’s projected revenue for the 2026 fiscal year, but the exact impact remains uncertain until the company completes its review.
The announcement comes at a time when Saudi Arabia’s construction sector is experiencing a mix of growth and regulatory tightening. The KAFD has secured a SAR 12 billion syndicated facility under a 15‑year corporate Murabaha agreement, underscoring the district’s importance to the country’s economic diversification plan. The cancellation of a high‑profile contract such as this may prompt other developers to reassess their project timelines and approval strategies.
In summary, Multi Business Group Co. has received a termination notice from Leejam Sports Co. for a sports‑club project in KAFD that was valued at more than 10 % of the company’s 2023 revenue. The company has not confirmed the validity of the notice, has not incurred material costs, and will review the notice before announcing further actions. The final financial impact is unknown at this time.
On June 21 2026, Multi Business Group Co. (stock code 9619) announced that it had received a termination notice from Leejam Sports Co. The letter, dated June 20 2026, formally cancels the contract the two companies signed in December 2024. The agreement covered the design, construction and finishing of a sports club in the King Abdullah Financial District (KAFD). Leejam’s rationale, as stated in the notice, is that the project failed to secure the design approvals required by the relevant authorities.
The contract’s value was significant. According to the letter, it exceeded 10 % of Multi Business’s 2023 topline. The company reported revenue of SAR 124.83 million in 2023, meaning the cancelled project represented a material portion of its earnings base. Multi Business said it is currently reviewing the notice from a regulatory and contractual standpoint and has not accepted the validity of its content. It added that no material costs have been incurred to date and that the final financial impact will be determined once the review is complete.
Leejam Sports Co., a Saudi sports‑industry firm that provides facilities and services, had previously announced a board resolution to distribute dividends for Q1 2026. Multi Business Group Co. is a listed construction and finishing company on the Saudi Exchange (Tadawul). The KAFD is a mixed‑use financial district managed by the King Abdullah Financial District Development and Management Company, a subsidiary of the Public Investment Fund.
The cancellation notice is significant because the project’s value represented a sizable portion of Multi Business’s annual revenue. The company’s statement indicates that it will announce any material developments once its review is complete. No additional costs or liabilities have been reported, and the company has not confirmed whether it will seek legal recourse or negotiate a settlement.
The letter’s reference to a “failure to obtain the required design approvals” suggests that the project may have encountered regulatory hurdles. KAFD projects are subject to a range of approvals from the district’s management and from municipal and national authorities. The absence of these approvals can delay or halt construction, as seen in other large‑scale developments in Riyadh.
Multi Business’s board has not issued a statement beyond the notice received. The company’s last earnings report, released in March 2025, highlighted its revenue growth and the completion of several finishing contracts. The cancellation of the KAFD sports‑club contract could affect the company’s projected revenue for the 2026 fiscal year, but the exact impact remains uncertain until the company completes its review.
The announcement comes at a time when Saudi Arabia’s construction sector is experiencing a mix of growth and regulatory tightening. The KAFD has secured a SAR 12 billion syndicated facility under a 15‑year corporate Murabaha agreement, underscoring the district’s importance to the country’s economic diversification plan. The cancellation of a high‑profile contract such as this may prompt other developers to reassess their project timelines and approval strategies.
In summary, Multi Business Group Co. has received a termination notice from Leejam Sports Co. for a sports‑club project in KAFD that was valued at more than 10 % of the company’s 2023 revenue. The company has not confirmed the validity of the notice, has not incurred material costs, and will review the notice before announcing further actions. The final financial impact is unknown at this time.
