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Saudi real estate firms earn SAR1.41 billion

Second-quarter profit down by 82 per cent compared with last year

The profits of real estate firms listed on the Saudi stock market declined to SAR1.41 billion in the first nine months of this year, compared with SAR2.59bn for the first half of last year, down by 46 per cent.

The second-quarter profit amounted to SAR291 million, compared with SAR 1.59bn in the same period last year, down by 82 per cent, and compared with SAR354 million for the previous quarter, down by 18 per cent, according to Al-Hayat newspaper.

The number of listed firms in the Saudi stock market amounted to eight joint firms and their market value – according to the market close at the end of last week – amounted to SAR93bn, representing six per cent of the market.

Real estate firms’ capital amounted to SAR37.7bn, of which SAR10.8bn is the capital of Dar Al-Arkan Real Estate Development Company and SAR9.3bn is that of Jabal Omar Development. Saudi real estate company Al Akariah has the smallest capital among the real estate firms with only SAR1.2bn.

The real estate development sector ranked fourth among financial market segments during the current third quarter, with its contribution in cash circulation amounting to 9.3 per cent, equivalent to SAR26bn.