By Sarah Townsend
Total value of profits accumulated by the eight real estate companies said to be $207m in Q1
The profits of listed real estate companies in Saudi Arabia grew by 52 percent in the first quarter of 2015 compared to the same period last year, it was reported on Monday.
The total value of profits accumulated by the eight companies was SR779.4 million ($207 million), up from SR513.1 million ($2.5 million) in the first quarter of 2014.
However, the sector’s profits plummeted by 29.6 percent when compared to the previous quarter during which profits stood at SR1.1 billion, according to Arab News.
Citing an unnamed financial report, the newspaper said sales by the property firms dropped by 20.4 percent to SR1.59 billion in the previous quarter compared to SR1.99 billion at the end of 2014.
Saudi’s listed real estate sector was worth SR139 billion according to last records taken at the weekend, Arab News reported, representing 6.5 percent of its capital market.
Dar Al Arkan Real Estate Development Company had the largest capital at SR10.8 billion, followed by Jebel Omar Company at SR9.29 billion. Saudi Real Estate Company (SRECO) has the lowest capital, at SR1.2 billion.
Taiba Holding achieved the biggest profit growth rate of 60 percent this quarter, to SR202.3 million compared to SR59.5 million the same time last year. However, its profits fell by 27 percent.
Jebel Omar Company achieved the second highest profits of SR149.3 million in the first quarter of 2015 – compared to losses of SR2.5 billion in the same period last year. However, its profits dropped by 65 percent compared to those from the fourth quarter of 2014, which stood at SR431 million, the newspaper said.
Dar Al Arkan Real Estate Development Company achieved the third highest profits of SR147.29 million compared to SR247.86 million during the same period last year, but this also represented a year-on-year drop of 40.6 percent for the company. Its profits were, however, 27.4 percent higher than in the previous quarter.
Other real estate companies posted profits at varying rates, the newspaper said.For all the latest real estate news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.