Skip to content Skip to Search
Skip navigation

Leejam seeks payoff for forced closure of Riyadh gyms

By Andy Sambidge
A man works out at a Fitness Time Xpress. Leejam runs 170-plus gyms in Saudi Arabia and the UAE Leejam Sports Company
A man works out at a Fitness Time Xpress. Leejam runs 170-plus gyms in Saudi Arabia and the UAE
  • Gyms on land needed for Diriyah Gate giga-project
  • Fitness company to write off $3m of assets
  • Leejam in talks with Saudi authorities over restitution

Leejam Sports Company is seeking compensation after being forced to close two of its gyms in Riyadh.

The shuttered Fitness Time centres are on land in the city’s Al Khuzama district, which has been earmarked for the $50 billion Diriyah Gate project.

In a filing to the Saudi Stock Exchange, Leejam said the two centres were closed last week and it would write off assets worth SAR11.4 million ($3 million) as a result. This will be reflected in its financial statements for the third quarter of 2023.

“The company is currently working on an agreement to try to compensate the company for the costs incurred by closing the two fitness centres with the relevant authorities,” Leejam added.

Under Article 5 of the Law of Expropriation of Real Estate for the Public Benefit and Temporary Seizure of Real Estate, the Diriyah Gate Development Authority can acquire land needed for the project.

The heritage and tourism giga-project is set to be home to 100,000 people and aims to attract 30 million visitors a year. It will include museums, retail space, restaurants and hotels.

Leejam, which runs more than 170 gyms in Saudi Arabia and the UAE, has also unveiled its first-half results. Revenue and net profit rose by 25 percent and 65 percent respectively compared to H1 2022, while membership numbers increased by 34 percent.

Revenue totalled SAR579 million and net profit hit SAR135 million. Men’s fitness centre continue to be the primary driver of growth.

Adnan Al Khalaf, the company’s CEO, said it was “well placed” for continued growth for the remainder of this year.

Latest articles

A Tadawul trader looks at prices on the Saudi stock exchange. Aramco's profits have fallen as Riyadh reduces oil output

Saudi listed companies report Q1 profit rise

Businesses listed on the Saudi stock exchange, excluding the state energy giant Aramco, reported an 8 percent rise in first-quarter profits this year, highlighting the continued strength of the non-oil sector as hydrocarbon output is cut.  Net profit gains in the banking sector, and for telecoms operator STC and state mining company Maaden, helped to […]

A jet on the assembly line at the Airbus factory in Blagnac, France. Saudia says it is updating the interiors of its current fleet

Saudia announces ‘largest deal in Saudi aviation history’

Saudia, one of Saudi Arabia’s national carriers, has ordered 105 aircraft from Airbus, with the first batch due for delivery in early 2026. Saudia director general Ibrahim Al-Omar told an aviation industry forum in Riyadh that it is “the largest deal in Saudi aviation history”. A similarly large order has been made by new carrier […]

Pilgrims Saudi Malaysia

Pilgrim air terminal planned for Kuala Lumpur airport

Saudi Arabia and Malaysia are planning to build a pilgrimage air terminal in Kuala Lumpur to increase tourism numbers in both countries. Malaysia’s transport minister Anthony Loke told an aviation industry forum in Riyadh that it was looking with the Saudi Arabian government into “building and establishing a Hajj and Umrah hub” in Kuala Lumpur […]

Man looks out at Doha's skyline. Qatar's debt as a percentage of GDP is expected to be just over 37% in 2024

Qatar to use $549m budget surplus to reduce debt

Qatar recorded a budget surplus of QAR2 billion ($549 million) in the first quarter of 2024, its finance ministry has announced. The ministry said the surplus would be used to reduce public debt, according to the state-run Qatar News Agency. Total revenue was QAR53.4 billion ($14.7 billion) in Q1, down 22 percent year on year. […]