Saudi real estate developer reports 892% profit hike
High-end property developer Dar Al Arkan's quarterly net profit rose by 892% on the back of increased real estate sales
Saudi Arabia property developer Dar Al Arkan has reported a massive 892% rise in quarterly profits.
Thanks to higher real estate sales, Dar Al Arkan's net profits surged from $2.9m (SAR10.9m) in Q2 2017 to $28.9m (SAR108.6m) in Q2 2018.
Its year-on-year H1 (YoY) profits increased significantly as well, rising from $6.1m (SAR23m) to $117.2m (SAR439.72m).
The company – hit with the resignation of its chief executive officer, Ziad Al-Chaar, last month – said its strong financial growth for both Q2 and H1 had been drivin by higher property sales.
Dar Al Arkan – which is behind luxury projects such as the 5km² mixed-use Shams Ar Riyadh community in Saudi Arabia – generated $475.9m (SAR1.7bn) in Q2 2018 sales, compared to the $121.7m (SAR456.4m) in Q2 2017.
The developer's YoY sales increased by 290%, and total H1 sales value came to $1.2bn (SAR4.5bn), compared to the $217.8m (SAR816.82m) made in the first six months of 2017.
The first half of 2018 was packed with activity for Dar Al Arkan, which opened a new sales office in Riyadh, and launched its $160m (SAR600m) Mirabilia upscale residential villas, during the period.
The project's interiors will be designed by Italian fashion house Roberto Cavalli, and it be built in the developer's $2.6bn (SAR10bn) Shams Ar Riyadh development.
Construction also began on the I Love Florence Tower in Dubai, for which Roberto Cavalli has again been appointed to deliver interior designs.