Built to inform

Sign up for the daily newsletters

No, Thank you

Arriyadh Development profit falls 8% amid sluggish Saudi land sales

The Riyadh-based developer plans to grant more shares in a bid to recapitalise the stock market-listed business

A lack of land sales in Riyadh dented profitablity at Saudi-based Arriyadh Development Company in 2018.
Arabian Business
A lack of land sales in Riyadh dented profitablity at Saudi-based Arriyadh Development Company in 2018.

Arriyadh Development Company’s (Arriyadh) net profit dropped by 8% in 2018 due to a lack of land sales, the Saudi-based company’s full-year results have revealed.

Profit after taxes and zakat fell to $54.1m (SAR203m), a single-digit decline when compared to the $62.6m (SAR235m) in net profit made during 2017.

Revenue, which the business generates from real estate sales among other avenues, fell by 9% year-on-year to $75.4m (SAR283m).

This came despite the company claiming to have witnessed a “significant” hike in rental income during the last 12 months.

Following a slowdown in profitable growth, Arriyadh said it will increase the number of publically available shares in the business by a third to strengthen its capital position.

Based on the recommendation of its board of directors, the company will increase the number of shares up for grabs from 1.3 million to 1.7 million. By issuing more shares, the company hopes to raise extra cash from the market to “strengthen” its liquidity position.

With each share valued at approximately $5.3 (SAR20.24) on Tadawul, Arriyadh could generate up to $118.4m (SAR444m) to fuel future development of Riyadh, which is undergoing a profound transformation.

This move, however, will still require a rubber-stamp by authorities before any go-ahead.

Most popular

Awards

New category open for consultancies at CW Awards 2019 in Dubai
Sub-Consultancy of the Year to be crowned for the first time at the gala ceremony

Conferences

Leaders UAE 2019: Pinsent Masons confirmed as Gold Sponsor
Law firm is among the major construction industry players confirmed as sponsors for Leaders UAE's
Leaders in Construction UAE Summit returns in Sept 2019
Dubai conference to see top officials discuss the people, trends, and challenges that will power

Latest Issue

Construction Week - Issue 747
Aug 03, 2019