JAZADCO Resolves Zakat-Related Cases from Previous Years and Reduces its Liabilities to SAR 13.8 Mln

Jazan Development and Investment Co. (JAZADCO) announced on Sunday that it resolved all zakat-related cases and disputes from previous years, excluding 2018, and received official approval from the Zakat, Tax and Customs Authority (ZATCA) on Thursday, June 12, 2025, regarding an instalment plan to settle zakat dues.

The Company explained that the approved instalment plan covers the fiscal years 2006, 2007, 2008, 2009, 2010, 2014, 2015, 2016, 2019, 2020 and 2023.

According to the announcement published on Tadawul, the total estimated liability has been reduced from SAR 22,585,206 (as shown in the zakat provision in the latest audited financial statements dated December 31, 2024) to SAR 13,813,320.

This resulted in a saving of SAR 8,766,216 (SAR 5,671 was paid earlier), which will have a positive impact on the company’s financial results for the second quarter of 2025 after reversing the provision.

The approved instalment plan, according to the announcement, will allow the liability to be settled over 132 monthly instalments of SAR 104,646 per instalment, with the first instalment due on July 30, 2025. The amounts will be repaid from the Company’s own resources.

The Company stated that the strategic importance of this plan contributes to improving the Company’s cash flow and supports its efforts to stabilise its financial position.

It also aligns with its strategy to close previous obligations and strengthen its financial position.

According to JAZADCO, the above data will help focus efforts on future growth and investment initiatives.

It is worth noting that 2018 is still under review by the Zakat, Tax and Customs Committees, and sufficient allocations have been made for this year.