Real Estate Sector Profits in "Tadawul" Jump 258% in 2023.. with Revenues of 14 Billion Riyals

The companies listed in the real estate sector on the Saudi Stock Exchange recorded a jump in their consolidated net profits in 2023 on an annual basis, supported by the strong profits of several companies, most notably Sinomi Centers, Dar Al Arkan, and Makkah. The sector’s revenues during the year exceeded 14 billion riyals.

The aggregate profits of the real estate sector jumped, according to statistics prepared by Mubasher based on companies’ disclosures on the Tadawul website, by 258.3% during 2023 AD on an annual basis, with an increase of 2.15 billion riyals over the profits of the previous year.

The aggregate profits of the real estate sector amounted to 2.98 billion riyals in 2023, compared to profits of 830.65 million riyals in 2022.

Sinomi Centers captures 50% of the sector’s profits

The sector was supported by the strong results of Sinomi Centers, whose profits jumped by 48.8% year-on-year last year, reaching SAR 1.5 billion, an increase of SAR 492.1 million over its profits in 2022, noting that the company’s profits in 2023 represent 50.4% of the sector’s consolidated profits.

Dar Al Arkan Company ranked second with net profits of 610.76 million riyals, a growth of 38.3% year-on-year, and an increase of 169 million riyals over the year 2022.

Makkah's profits jumped by 114% in 2023 to 334 million riyals, an increase of 178 million riyals over the previous year.

Al-Taamir and Retal came in fourth and fifth place, with profits amounting to 271.5 million riyals and 202.35 million riyals, respectively, despite their profits declining by 9.6% and 17.66%, respectively.

Taiba achieved net profits in 2023 of 109.8 million riyals, but decreased by 21% from the previous year, followed by Sumou Real Estate with a profit of 103 million riyals and a growth of 17.5% from 2022, then Al Aqaria with profits of 67.6 million riyals and a decrease of 38.8% on an annual basis.

Andalusia's profits decreased by 45.5% in 2023 to 36.42 million riyals, while Jabal Omar and Red Sea International turned profitable with a net profit of 35.82 million riyals and 2.14 million riyals, respectively.

Emaar reduced its net losses by 78% last year to SAR 253 million, noting that its losses in 2022 affected the sector’s consolidated results in the same year, as it incurred net losses of SAR 1.16 billion.

While the losses of Knowledge City jumped by 135% to 45.56 million riyals.

It is noteworthy that the sector recorded an increase in profits during the first 9 months of 2023 by 152.99% on an annual basis, amounting to 2.23 billion riyals, compared to 883.16 million riyals in the same period of the previous year.

Real estate sector revenues exceed 14 billion riyals in 2023

Mubasher statistics showed that the revenues of Saudi real estate companies listed on the main stock market of Tadawul increased by 12.2% in 2023 AD on an annual basis, with an increase of 1.53 billion riyals over the previous year.

The combined sales/revenues of listed real estate companies amounted to SAR 14.04 billion in 2023, compared to SAR 12.51 billion in 2022.

Dar Al Arkan Company was the highest in sales/revenues during 2023, with revenues amounting to 2.7 billion riyals, despite a 31% decrease on an annual basis.

Sinomi Centers came in second place with revenues of 2.25 billion riyals, an increase of about 2.1% over 2022, followed by Al-Aqaria with revenues of 1.81 billion riyals, a decrease of 11.56% on an annual basis.

The Red Sea ranked fourth with revenues of SAR 1.38 billion after jumping 241% last year, followed by Retal with revenues of SAR 1.37 billion and a growth of 23.5% year-on-year, then Jabal Omar with revenues of SAR 1.33 billion and a growth of 56.2% from the previous year.

Emaar's revenues increased by 184% in 2023 to reach SAR 1.03 billion, followed by Makkah and Taiba with revenues of SAR 731 million and SAR 536.4 million respectively, an increase of 58.6% and 62.4% respectively compared to the previous year.

Al-Taamir achieved revenues of 339.2 million riyals in 2023, an increase of 31%, while Sumou Real Estate and Andalus recorded a slight decrease in revenues of 3% and 0.4% last year, reaching 273.82 million riyals and 215.16 million riyals, respectively.

Knowledge City Company had the lowest revenues in the sector last year, amounting to 66.86 million riyals, despite an increase of 18% over the previous year.

The sector achieved revenues in the first 9 months of 2023 amounting to 9.95 billion riyals, compared to 9.04 billion riyals in the same period of the previous year, an increase of 9.99%.

The sector turns to profitability in the fourth quarter... and revenues increase by 18%

Real estate companies in the Saudi market turned profitable during the fourth quarter of 2023 on an annual basis.

The sector achieved consolidated profits of 741.54 million riyals in the last quarter of last year, compared to losses incurred in the fourth quarter of 2022 with a net of 52.51 million riyals; This was directly affected by the results of Emaar, Jabal Omar and the Red Sea Company.

Supporting the sector’s results in the fourth quarter were the 24.3% increase in profits of Sinomi Centers to SAR 482.3 million, Dar Al Arkan with a 299.8% increase to SAR 194.75 million, and Al Aqaria with a 90% increase to SAR 156.9 million, in addition to the growth in Taamir’s profits with a 286.4% jump to SAR 149.4 million.

Emaar reduced its losses by 60% in the fourth quarter to reach 204 million riyals, compared to 509 million riyals in the same quarter of 2022.

In contrast, Jabal Omar’s losses increased by 3.7% to 201.7 million riyals, Knowledge City’s losses increased by about 150.5% to 21.68 million riyals, and Taiba turned to losses with a net of 33.7 million riyals.

On a quarterly basis, real estate sector profits decreased by 23.6% in the fourth quarter of 2023 compared to profits in the previous quarter of the same year, which amounted to 971.04 million riyals.

As for sales/revenues, they recorded a growth of 18.03% in the fourth quarter of 2023, reaching 4.09 billion riyals, compared to 3.47 billion riyals in the same quarter of the previous year.

The Red Sea Company had the highest revenues in the fourth quarter of 2023, with a total of 1.03 billion riyals, after jumping by 663.86% year-on-year.

Real estate sector sales/revenues increased by 24.3% during the fourth quarter of 2023 compared to its value in the third quarter of the same year, which amounted to 3.29 billion riyals.