Q1'19 profit for Saudi's Makkah Construction & Development Co
The firm, which operates real estate around Makkah Grand Mosque, posted a 2.4% hike in YoY net profits
Net profits at Saudi Arabia's Tadawul-listed Makkah Construction & Development Company – which owns, develops, operates, and invests in real estate around Makkah Grand Mosque – increased minimally in Q1 2019, despite a slight dip in revenues compared to the first three months of 2018.
According to its first quarter financial statement, net profit at the company for Q1 stood at $12.8m (SAR48m), a 2.4% increase on 2018’s corresponding $12.5 (SAR47m) figure.
Revenues at the group hit $25.6m (SAR96m) in Q1 2019, a 3% dip on Q1 2018 when it brought in $26.4 (SAR99m) in cash.
Founded in 1989, Makkah Construction & Development Co is the largest shareholder in Jabal Omar Development Company (JODC), known for its Jabal Omar megaproject on Ibrahim Al-Khalil Street in the Holy City of Makkah.
JODC is currently carrying out development work on Phase 2 of Jabal Omar. A contract of undisclosed value for the project – located within walking distance of Makkah Grand Mosque – was awarded to UAE-based Al Arif Contracting in September 2018.
The developer of Jabal Omar swung back into the black in Q1 2019, reporting net profits of $426,632 (SAR1.6m) – a marked change on Q1 2018 when the developer posted losses of more than $26.7m (SAR120m).
In 2018, JODC recorded $320m (SAR1.2bn) in sales from residential units, while its hotel and commercial centre revenues respectively grew by 28% and 60%.