Accumulated losses and underutilization of resources oust Shams board of directors

Al-Eqtisadiah from Riyadh

Sunday 19 July 2026 9:27 | 2 minutes read

The general assembly of Shams Tourism Projects Company approved the removal of the current board members based on a request from some shareholders who own shares representing 10.04% of the capital.

Shams explained in a statement on Tadawul today, Sunday, that the shareholders approved the removal of the current members: Saeed Babaker, Lama International for Investment Company, and Sons of Salih Babaker for Trading and Contracting Company, due to financial and operational results below expectations, in addition to accumulated losses and thus continued decline in shareholders' equity, and thirdly, the suboptimal utilization of the company's available resources to develop its business and activities.

Thu, 02 2026

It also approved the election of the new board members from among the candidates for the next four-year term: Saif Al-Harbi, Majed Al-Otaibi, Faris Al-Faris, Nasser Al-Barak, Sarah Al-Subaie, Khaled Al-Qazlan, and Fawaz Al-Alami.

For its part, the new board of Shams, chaired by Nasser Al-Barak, approved the amicable termination of the contractual relationship with current CEO Abdullah Al-Suwailem, and appointed Majed Al-Otaibi as CEO effective July 17, who has 25 years of experience in investment and asset management, during which he held leadership positions in banks and investment companies, and holds a Master's degree in Economics from Ohio University.

The company had incurred losses of 4.5 million riyals during the first quarter of the current year, compared to a profit of 726 thousand riyals for the same quarter last year, after a decline in the Islamic murabaha rate and the fair value of financial assets, while Shams revenues increased by about 11.6% to 1.5 million riyals, due to the quarter including the Eid al-Fitr holiday.

Shams, founded in 1991, operates in the tourism sector, owning Palm Beach Resort in the Eastern Province along 1,300 meters, containing 260 chalets of various sizes, with the company's market value today at 933 million riyals.

Definitions