Mobico shares surged after the company announced a major eight-year contract to provide transport services for Qiddiya, a new city being developed in Saudi Arabia. The deal, valued at £434 million, will see Mobico oversee the operation of 156 vehicles, with a significant focus on electric transport, and manage park-and-ride facilities and shuttle services connecting Riyadh and Qiddiya.

Qiddiya is a central part of Saudi Arabia's ambitious plan to diversify its economy and establish itself as a global hub for entertainment, sports, and culture. The city is expected to eventually house around 600,000 residents and cover a vast area southwest of Riyadh.

This contract marks a positive turn for Mobico, whose shares had previously hit record lows due to earnings drops and operational challenges in other markets. The new agreement is seen as a strategic move to strengthen Mobico's presence in the Middle East and highlights the company's expertise in delivering large-scale, sustainable transport solutions.