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

Amr al-Dabbagh is the chairman of Saudi Arabian development company, Red Sea International.
Amr al-Dabbagh is the chairman of Saudi Arabian development company, Red Sea International.

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. 

READ: Rentals drive mixed fortunes for Tadawul-listed Saudi developers

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). 

 

Most popular

Awards

Deadline approaches for CW Oman Awards 2020 in Muscat
You have until 20 January to submit your nominations for the ninth edition of the

Conferences

CW In Focus | Inside the Leaders in KSA Awards 2019 in Riyadh
Meet the winners in all 10 categories and learn more about Vision 2030 in this
CW In Focus | Leaders in Construction Summit UAE 2019
A roundup of Construction Week's annual summit that was held in Dubai this September

Latest Issue

Construction Week - Issue 765
Jun 29, 2020