Skip to content Skip to Search
Skip navigation

Dar Al Arkan profit nearly doubles as lease revenue rises

By Pramod Kumar
An artist's impression of Dar Al Arkan's Aida, a mixed-use project, overlooking Muscat, Oman Dar Al Arkan
An artist's impression of Dar Al Arkan's Aida, a mixed-use project, overlooking Muscat, Oman
  • Overall revenue drops 3.6%
  • Operating expenses fall
  • Lease revenue climbs

Profits almost doubled for the third quarter at Saudi Arabia’s largest developer, Dar Al Arkan, driven by a fall in operating expenses and an increase in lease revenue.

For the quarter ended September 30 2023, profits rose 91.27 percent to SAR151.91 million ($40.49 million), from SAR79.42 million a year earlier, the company said in a filing to the Saudi stock exchange.

However, revenue was down 3.6 percent year-on-year to SAR715.7 million.

The developer’s net profit rose nearly six percent year on year to SAR416.01 million in the first nine months of 2023, as a result of a decrease in operating expenses, an increase in lease revenue and a higher profit share from associates. 

The increase in finance costs was partially offset by the higher non-operating income from the Murabaha deposit.

Murabaha is an Islamic financing structure in which the seller and buyer agree to the cost and mark-up of an asset.

Revenue fell 24.13 percent to SAR2.31 billion during the nine-month period, from SAR3.04 billion a year earlier.

Shareholders’ equity, after minority interests, stood at SAR20.10 billion as of September 30, 2023, against SAR19.55 billion in the same period last year. 

In July, the developer closed its ninth tranche of the US dollar-denominated sukuk, worth SAR2.25 billion.

Dar Al Arkan, the kingdom’s largest developer by market value, has more than $8 billion in assets. Its independent subsidiary Dar Global completed a $600 million listing on the London Stock Exchange in February. 

Latest articles

Shein IPO

Mubadala-backed Shein courts investors before London IPO

Chinese fashion retailer Shein, which is backed by the Abu Dhabi sovereign wealth fund Mubadala, is courting European investors before an initial public offering on the London Stock Exchange. Shein is due to hold informal meetings to answer questions and test the investment appetite of major investors in the coming weeks, before its planned IPO […]

Despite challenges to the economy, Kuwait's bank sector remained resilient, the country's central bank says

Kuwait’s economy holds up against challenges, says central bank

Robust spending and “long-due” structural reforms expected to accelerate following “recent political developments” will help Kuwait’s economy overcome some challenges, according to the Central Bank of Kuwait (CBK). Kuwait faced multiple challenges in 2023 in the face of high inflation, rising global interest rates and bubbling geopolitical tensions in the region, according to CBK’s 12th […]

Saudi Arabia data centre

Four-fold boost to Saudi data centres planned

Saudi Arabia plans to boost its data centre capacity four-fold to more than 1,000 megawatts over the next five years, according to one of the country’s leading data centre providers. The current capacity in the kingdom is approximately 250-300MW. Abdullah Al Ghamdi, CEO of Al Moammar Information Systems (MIS), revealed the target in an interview […]

Saudi Vale copper

Saudi-backed Vale plans to increase copper output

Brazilian miner Vale, which is backed by Saudi Arabia’s Public Investment Fund (PIF), aims to increase copper production after conceding that it had lost ground to competitors in its output of the key metal. Vale is a top global iron ore producer but also operates base metal projects including copper and nickel.  In his first […]