Press Release Content

Dar Al Arkan Real Estate Development Company ("Dar Al Arkan" or the "Company") reported its results for the second quarter and the first half of 2008.

Revenues for the first half of 2008 reached SAR 2.8 billion, a 42% increase compared to the SR1.9 billion for the first half of 2007. This increase reflects the launch of our landmark Al Qasr project as well as increased land sales where the Company felt that the appreciation had been realized. For the second quarter of 2008, revenues were SAR 1.6 billion, a 48% increase when compared to the same period of 2007.

"We are very pleased with the Company's growth in 2008" said Mr. Abdullatif Al-Shalash, managing director. He added "The quarter on quarter growth achieved over the last year is a reflection of our ability to continuously deliver quality accommodation to the market, whilst benefiting from the current land appreciation environment."

Net Income for the first half of the year was SAR 1.1 billion, or SAR 2.11 per share compared to SAR 0.9 billion, or 1.66 per share for the same period of 2007. For the second quarter of 2008, net income reached SAR 688 million or 1.27 per share, compared to SAR 474 million or 0.88 per share for the second quarter of 2007.

Recent developments

In April, the Company was awarded a contract by the local authorities in Jeddah for the development of the Khozam Palace project. This multi year project, to be executed through a joint venture with the local authorities, is aimed at rejuvenating the area surrounding the historical Khozam Palace in the center of Jeddah. "We are delighted to partner with the Jeddah local authorities for the restoration of a site with such a cultural and historical value as the Khozam Palace area" said Abdullatif Al-Shalash.

On July 22nd, the Company, in its capacity as lessee of the 2010 and 2012 Sukuk Assets, entered into new lease agreements with amended financial covenants. These amendments will allow Dar Al Arkan to benefit from the growth opportunities in Saudi Arabia.

Notes and contacts

About Dar Al Arkan

Dar Al Arkan is a leading real estate developer in the Kingdom of Saudi Arabia and the Gulf area. The Company provides high quality residential and commercial units in comprehensive communities. Dar Al Arkan currently has under development projects in Riyadh, Jeddah and Medina. Dar Al Arkan's shares are listed on Tadawul (symbol:4300).

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