Jabal Omar Development, one of the largest real estate development companies in the Middle East and one of the largest companies listed in the Saudi stock market, plans to expand and announce soon the construction of new hotels.

This is what the CEO of the company, Yasser Al-Sharif, confirmed during a meeting with Al-Arabiya channel that the company’s focus will be in the field of handing over hotels and residential units, and we will soon announce the opening of new hotels.

He pointed out that the demand for sales units on the map is very strong last December, indicating that the company obtained a license to sell on the map, its financial impact will be shown on the performance of Jabal Ammari in 2019.

Jabal Omar achieved profits of about 193.8 million riyals at the end of 2018 compared to 601 million riyals losses incurred in 2017.

Yasser Al Sharif attributed the increase in the company's other income by SAR 243 million to returns that came from the company's investment in the Development Fund.

3 factors

The company said in a previous statement to Tadawul that the reason for achieving profits during the current period compared to the corresponding period of the previous year is due to:

1- Increase revenue by 245% due to sales of housing units by 1,209 million Saudi riyals (there was no sale of housing units in the previous period) and an increase in revenue from hotels by 28 % And malls by 60%.

2- Decrease in the cost of revenue ratio to 59% from 98% in the previous period, mainly due to sales of housing units (including sales on the map that started in December 2018) and that carry Higher profit margin.

3- The operating costs decreased by 108%, mainly due to the increase in other income by SAR 243 million and the decrease in the ratio of operating expenses to revenue to 13% (37% in the previous period).

This came despite the increase in the financial burden by SAR 187 million mainly due to the recognition of the full year of the sale and leaseback process.

Jabal Omar Development Company is one of the most important integrated real estate development projects located just steps away from the Holy Mosque.

The total area of ​​the land in the Jabal Omar project is 230 thousand square meters, and the project includes 40 hotel towers and is considered a mixed use for its apartments, luxury residential units, international hotels and commercial markets.

Hotels owned by Jabal Omar Development Company are managed by major international hotel companies. Hotels that are currently operating include Jabal Omar Conrad Hotel, Jabal Omar Hyatt Regency Hotel, Jabal Hotel Omar Marriott, Jabal Omar Hilton Suites, and Jabal Omar Hilton Convention Hotel which houses the largest conference hall in Mecca.