Saudi Arabia's Jabal Omar Development Co.’s second quarter results this year were good due mainly to the higher sales of residential units and higher revenue from hotels, Yasser Al-Sharif, chief executive officer of Jabal Omar told CNBC Arabia.
The company is looking to achieve even better results in the near term as the hospitality sector is seeing higher revenue and occupancy rates.
The acquisition of Makkah Construction and Development Co., which has been approved by the general assembly, will be duly completed as per the company’s strategy, Al-Sharif said.
Meanwhile, the sale of Jabal Omar’s assets at the Makkah development project to Alinma Investment Co. for SAR 6 billion was aimed to fund the set-up of a real estate investment fund (Alinma REIT), as part of a strategic plan to restructure the company’s financial portfolio and offer new products to the Saudi market.
In March, Jabal Omar sold three hotels (Makkah Conrad, Hilton Makkah, Hyatt Regency Makkah) and Al Khalil Shopping Center to Alinma Investment, Argaam previously reported.
The firm posted a net profit of SAR 62.37 million for the second quarter of fiscal year 2016-17, compared to a net loss of SAR 44 million in the same period last year.
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