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Developer of Saudi Arabia's Jabal Omar reports 245% revenue hike

Jabal Omar Development Co posts net profit of $51.7m for 2018, a marked improvement over 2017's net loss of $160m

Jabal Omar is JODC's flagship project in Makkah, Saudi Arabia.
CW Archives
Jabal Omar is JODC's flagship project in Makkah, Saudi Arabia.

Saudi Arabia's Jabal Omar Development Company (JODC) swung back into profit in 2018 after posting a multimillion-dollar loss in 2017, the real estate developer’s latest financial results have revealed.

Revenue at the Tadawul-listed firm for the period ending 31 December, 2018 stood at $522.7m (SAR1.96bn), a whopping 245% increase on 2017’s corresponding figure of $151.7m (AED568.8m).

JODC posted $320m (SAR1.2bn) in sales from residential units, in addition to a 28% increase in hotels revenue and a 60% hike in commercial centre revenues. This multi-sector growth, the developer said, contributed to its overall revenue hike for 2018. 

Net profit after zakat and tax in 2018 stood at $51.7m (SAR193.8m), a significant improvement on 2017's loss of $160m (SAR600m).

Other income at the group also climbed to $64.8m (SAR243m), a figure that helped decrease operating costs by 108%.

Jabal Omar is located within walking distance of Makkah Grand Mosque (pictured; CW Archives).

“During [2018], financial charges increased by [$49.9m] SAR187m mainly due to the full year recognition of the sale and lease back transaction,” the firm said in its Tadawul missive.

“On the other hand, management was able to better manage expenses, despite the expansion in operating and investment activities.”

In May 2018, JODC teamed up with UAE-based financial services firm Shuaa Capital to launch and manage real estate investment vehicles in the kingdom. Their agreement followed a similar memorandum between JODC and ADFG, Shuaa’s largest shareholder, designed to bolster collaboration and partnership building for projects in the holy city of Makkah.

September 2018 saw JODC award a contract of undisclosed value to UAE builder Al Arif Contracting for Phase 2 of its mixed-use, flagship Jabal Omar project, located within walking distance from Makkah Grand Mosque. 

Phase 2 of Jabal Omar includes the building of four mixed-use towers, comprising a hotel managed by Dubai's high-end hospitality company Jumeirah Group, according to Reuters reporting at the time.

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Construction Week - Issue 747
Aug 03, 2019