TH traces funds to recover RM980m debt from Saudi firm

KUALA LUMPUR: Tabung Haji (TH) is tracing funds and bank transfers linked to Al-Rawda Investment for Real Estate Development and Project Management Ltd as part of efforts to recover outstanding debts.

Minister in the Prime Minister's Department (Religious Affairs) Dr Zulkifli Hasan said TH was pursuing recovery efforts with the relevant parties in Saudi Arabia.

He said agreements signed between TH and Al-Rawda from 2014 to 2017 involved legacy lease investments, under which TH leased four hotels in Makkah and Madinah on a long-term basis.

"TH has taken legal action and initiated enforcement proceedings in Saudi Arabian courts over a promissory note issued by Al-Rawda and guaranteed by its owner, following the company's prolonged failure to make payments under the agreement," he said in a written parliamentary reply yesterday.

Zulkifli said Al-Rawda initiated arbitration proceedings against TH in 2021, resulting in an award ordering the company to pay TH SAR899 million (RM980 million).

"TH and Al-Rawda signed a settlement agreement on Nov 27, 2024, setting out the terms for payment of the arbitration award.

"However, Al-Rawda paid only part of the amount, totalling SAR14.9 million (RM16.26 million).

"The company then failed to comply with the settlement agreement despite an extension granted by TH. The agreement was terminated on Jan 15, 2025," he said.

Zulkifli said TH had submitted a complaint to the Governor of Makkah in September 2025 over Al-Rawda's failure to fulfil its obligations.