Dar Al Markabah: Two Members of Audit Committee Resign Over Weak Governance Implementation

Al Eqtisadiah from Riyadh

Sunday, July 19, 2026 10:43 | 2 minutes read

Dar Al Markabah Car Rental Company received the resignation of both Khaled Al-Muqbil and Ahmed Al-Saadoun from the membership of the Audit Committee, due to weak implementation of governance procedures in the company.

Dar Al Markabah explained in a statement on 'Tadawul' today, Sunday, that it will appoint two alternate members, according to the usual procedure, so that the committee's composition aligns with the system's requirement regarding the minimum number of committee members (3), and the name of the appointed member will be announced later in accordance with regulations and instructions.

The company's losses had escalated last year by 436% to reach 6.2 million riyals, due to increased operating costs, higher general and administrative expenses, and lower sales. This was attributed to the impact of fleet restructuring, lower occupancy rates during the transition period, and continued fixed costs despite declining revenues.

Annual revenues declined 20% to 53 million riyals, due to a realignment of the company's strategy for its customer and contract portfolio, achieving a better balance between sectors and focusing on contracts with higher cash flows and profitability. The company also launched an initiative to halt low-profit or negative-profit projects, while focusing on maximizing the utilization of internal operational capacity, leading to a temporary decline in sales volume during the period.

The company's accumulated losses reached 26% of capital by the end of 2025, coinciding with the announcement of the annual financial results, with accumulated losses amounting to 6.6 million riyals. The company justified this by implementing a plan to restructure some activities, which included halting a number of low-profitability projects and contracts to improve operational efficiency in the medium and long term.

Dar Al Markabah, founded in 2013, was listed on the parallel market 'Nomu' in 2023. It operates in the car rental sector across all categories and activities. Its current market value is 60 million riyals, and Saleh Al-Zahrani owns the largest stake of 44% of its capital.

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