Saudi developer ensures stability despite chairman's detainment
Red Sea International confirmed "the independence of its activities and [...] financial capital" from reportedly detained chairman, Amr al-Dabbagh
Saudi Arabian developer, Red Sea International, reported that it is business as usual in the organisation.
Amr al-Dabbagh (pictured), chairman of builder Red Sea International, was reported by Reuters to have been detained by Saudi authorities earlier this week.
According to a press statement, Red Sea International has asserted "the independence of its activities and [...] financial capital from the chairman of the board of directors".
The firm also confirmed "the continuation of its business as usual and in the interests of its shareholders and customers".
Any significant developments related to the chairman would be announced in time, the firm added.
Earlier this week, Red Sea International Co revealed in a filing to Tadawul that a 23.2% decline in rental sales was partly responsible the reduction in its gross profit margin for Q3 2017.
The developer's revenues decreased due to a 29.9% reduction in building sales, compared to corresponding quarterly figures for 2016, thus leading to a reduction in gross profit, from 24.1% in Q3 2016 to 12.6% in Q3 2017.
Overall, Red Sea International Co reported a net loss of $3.4m (SAR12.7m) in Q3 2017, a significant drop compared to Q3 2016's net profit worth $2.8m (SAR10.5m).