Saudi Cable Company Secures Approval to Pay SAR 155 Million Zakat Dues in Installments Over 9 Years

Riyadh | EcoPulse24

Saudi Cable Company, listed on the Saudi Stock Exchange (Tadawul), announced on Tuesday, December 24, 2025, that it has secured approval from the Zakat, Tax and Customs Authority for a plan to pay SAR 155,462,082.66 in accumulated zakat dues over nine years. The payment will be made in 36 quarterly installments, starting from February 1, 2026, and continuing until 2035, with each installment averaging around SAR 4.3 million.

The zakat dues cover assessments and declarations for the years 2012, 2015, 2016, 2017, 2018, 2019, 2020, 2021, and 2023. This long-term installment plan allows the company to spread out a significant financial obligation, rather than paying it in a lump sum, which would have put severe strain on its liquidity and operational capacity. The company praised the Authority's ongoing support and flexibility in assisting companies facing financial difficulties.

These dues reflect more than a decade of accumulated zakat obligations, indicating historical disputes or delays in settlement. The non-consecutive nature of the years involved suggests phased reviews or disagreements over zakat base assessments that took time to resolve.

Founded in 1975, Saudi Cable Company is one of the Kingdom's oldest manufacturers of electric and copper cables. In recent years, it has faced operational and financial challenges, including stiff sector competition and volatility in raw material prices, especially copper.

The installment approval is a positive development, easing immediate cash flow pressures and allowing management to focus on operational improvement without the threat of a major financial shock. It also removes uncertainty for investors and creditors. However, the company will remain under a fixed annual obligation averaging SAR 17.2 million, which could affect its ability to distribute dividends or reinvest, requiring careful cash management.

The Authority's approval demonstrates a balanced approach to collecting dues while supporting business continuity. Such flexibility aims to avoid bankruptcies and their broader economic impacts. However, the announcement also highlights the importance of timely zakat and tax compliance to prevent burdensome accumulations.

Market reactions to the news may be mixed. The announcement provides clarity and reduces uncertainty, but the size and duration of the obligation may raise concerns about the company's financial health. Future share performance will hinge on the company's ability to generate stable operating revenues and positive cash flows to meet installment payments and support growth. Any default could have further legal and financial consequences.

In summary, the announcement means Saudi Cable Company has successfully negotiated a nine-year payment plan for a large, accumulated zakat obligation, easing immediate financial stress but committing to a long-term liability. For investors, this is a mixed signal: it resolves a longstanding issue but highlights ongoing financial challenges.