Agility, one of the region's biggest logistics companies, is seeking legal action against Kuwait's Public Authority of Industry for not renewing its lease contract for a large parcel of industrial land in the Gulf state.
Kuwait-based Agility said the PAI had indicated they would not renew a contract relating to one million square metre industrial land that generates about 6.5 million Kuwaiti dinars (Dh78.9m) annually for the company. The land is located in South Amghara in Kuwait, which hosts several industrial and scrap facilities, said the firm, which is listed on both Dubai and Kuwaiti bourses, in a regulatory filing on Thursday. Financial impacts of collapse of lease cannot be assessed at the moment, it added.
Agility is pursuing legal actions against the industrial authority because it believed "it has the right for this contract to be renewed", it said in the statement.
The case against the PAI was filed on July 2, the firm disclosed, with the next hearing scheduled for September 5.
In February, the company posted a 22.5 per cent increase in fourth-quarter net profit, with revenues from its international logistics business driving much of its growth.
Agility, which used to be the main food supplier to the US army in Iraq, is expanding into new areas and regions to diversify its revenue base. It is also investing heavily in Africa, building a mall in the UAE and setting up a logistics park in Saudi Arabia, the region's biggest economy.
In an interview with The National in February, Mohammad Jaber, the company's chief operating offer and regional director for logistics projects, said the company was eyeing a larger share of oil-and-gas projects in the region, with the Middle East and Africa remaining future hotspots for growth.