Employee benefit obligations comprise the following:
| Description | Notes | 2025 | 2024 |
|---|---|---|---|
| Employees’ end of service benefits | 19 (a) | 145,368 | 138,550 |
| Employees’ post-retirement health care benefit | 19 (b) | 204,231 | 206,716 |
| 349,599 | 345,266 |
Net benefit expense recognised in profit or loss for the year in the statement of profit or loss and other comprehensive income:
| Description | 2025 | 2024 |
|---|---|---|
| Current service cost | 16,704 | 15,974 |
| Interest cost | 20,797 | 17,771 |
| 37,501 | 33,745 |
Net benefit gain recognised in other comprehensive income in the statement of profit or loss and other comprehensive income:
| Description | 2025 | 2024 |
|---|---|---|
| Actuarial (gain) / loss arising from experience | (14,053) | 34,010 |
| Actuarial gain arising from changes in financial assumptions | (1,549) | (37,641) |
| (15,602) | (3,631) |
a) Employees’ end of service benefits
The Company has an employee defined benefit plan. The benefits are required by Saudi Labor Law. The benefit is based on the employees’ final salaries and allowances and their cumulative years of service, as stated in the labor laws of Saudi Arabia.
The following table summarizes the components of the net benefit expense recognised in the statement of profit or loss and other comprehensive income and amounts recognised in the statement of financial position.
Movement in the present value of employees’ end of service benefits:
| Description | 2025 | 2024 |
|---|---|---|
| Opening balance | 138,550 | 136,610 |
| Included in profit or loss: | ||
| Current service cost | 10,746 | 10,495 |
| Interest cost | 7,771 | 6,682 |
| 18,517 | 17,177 | |
| Included in other comprehensive income: | ||
| Actuarial loss / (gain) on obligations | 3,011 | (3,994) |
| Benefits paid during the year | (14,710) | (11,243) |
| Closing balance | 145,368 | 138,550 |
Significant assumptions used in determining the employee defined benefit obligation include the following:
| Description | 2025 | 2024 |
|---|---|---|
| Discount rate | 5.55% | 5.80% |
| Future salary increase rate | 5% | 4.80% - 5% |
A quantitative sensitivity analysis for significant assumptions on the defined benefit obligation is shown below:
Discount rate:
| Description | 2025 | 2024 |
|---|---|---|
| 0.5% increase in discount rate | (5,977) | (5,347) |
| 0.5% decrease in discount rate | 6,454 | 5,806 |
Future salary growth rate:
| Description | 2025 | 2024 |
|---|---|---|
| 0.5% increase in future salary growth rate | 6,457 | 5,832 |
| 0.5% decrease in future salary growth rate | (6,035) | (5,420) |
The sensitivity analysis is based on a change in one assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of defined benefit obligation calculated with projected unit credit method at the end of the reporting period) has been applied when calculating the employee termination.
The weighted average duration of the defined benefit obligation as at December 31, 2025 is 8.6 years (December 31, 2024: 8.1 years).
The expected maturity analysis of undiscounted employee benefit obligations as at December 31, is as follows:
| Description | 2025 | 2024 |
|---|---|---|
| Less than a year | 13,774 | 9,161 |
| Between 1 – 4 years | 41,839 | 47,765 |
| Between 5 – 10 years | 93,531 | 95,760 |
b) Employees’ post-retirement health care benefit
The Company provides full medical coverage to Saudi employees and their spouses provided they have completed a minimum 25 years of service with the Company, and their age is minimum 55 years, or the employee reaches the age of 60. The employees who joined the Company after February 28, 2021, will not be eligible for this benefit.
The following table summarizes the components of the net benefit expense recognised in the statement of profit or loss and other comprehensive income and the amounts recognised in the statement of financial position:
Movement in the present value of employees’ post-retirement health care benefit:
| Description | 2025 | 2024 |
|---|---|---|
| Opening balance | 206,716 | 192,569 |
| Included in profit or loss: | ||
| Current service cost | 5,958 | 5,479 |
| Interest cost | 13,026 | 11,089 |
| 18,984 | 16,568 | |
| Included in other comprehensive income: | ||
| Actuarial (gain) / loss on obligations | (18,613) | 363 |
| Benefits paid during the year | (2,856) | (2,784) |
| Closing balance | 204,231 | 206,716 |
Significant assumptions used in determining the post-employment defined benefit obligation include the following:
| Description | 2025 | 2024 |
|---|---|---|
| Discount rate | 6.20% | 6.35% |
| Medical rate (pre-retirement) | 9% | 10% |
| Medical rate (post-retirement) | 10% | 10% |
A quantitative sensitivity analysis for significant assumptions on the defined benefit obligation is shown below:
| Discount rate | 2025 | 2024 |
|---|---|---|
| 0.5% increase in discount rate | (21,244) | (21,988) |
| 0.5% decrease in discount rate | 24,901 | 25,843 |
| Medical rate (Pre-Retirement) | 2025 | 2024 |
|---|---|---|
| 0.5% increase in medical rate (Pre-retirement) | 6,716 | 926 |
| 0.5% decrease in medical rate (Pre-retirement) | (6,184) | (925) |
| Medical rate (Post Retirement) | 2025 | 2024 |
|---|---|---|
| 0.5% increase in medical rate (post-retirement) | 16,676 | 23,760 |
| 0.5% decrease in medical rate (post-retirement) | (14,957) | (20,571) |
The sensitivity analysis is based on a change in one assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligations to significant actuarial assumptions the same method (present value of defined benefit obligations calculated with projected unit credit method at the end of the reporting period) has been applied when calculating the employee termination.
The weighted average duration of the defined benefit obligation as at December 31, 2025 is 22.9 years (December 31, 2024: 23.8 years).
The expected maturity analysis of undiscounted Employees’ post-retirement health care benefit as at December 31, is as follows:
| Description | 2025 | 2024 |
|---|---|---|
| Less than a year | 3,305 | 3,167 |
| Between 1 – 4 years | 11,955 | 11,723 |
| Between 5 – 10 years | 36,676 | 35,887 |