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Dar Al Arkan Q1 profit rises 31% on higher property sales

The first phase of the luxury residential tower 'DG1' in Dubai, built by Dar Al Arkan's international arm Dar Global, should be completed this year Dar Al Arkan/X
The first phase of the luxury residential tower 'DG1' in Dubai, built by Dar Al Arkan's international arm Dar Global, should be completed this year

The net profit of Saudi Arabian real estate company Dar Al Arkan rose 31 percent in the first quarter of 2024 to SAR154 million ($41 million). 

The earnings increase was driven by higher property sales, a fall in operating expenses, and higher non-operating income from Islamic deposits.

Property sales increase drove revenue higher by 13 percent year on year to SAR865 million.

Profit was, however, down by 21 percent from SAR195 million in the fourth quarter 2023 due to lower income from associates, higher funding costs and lower income from Islamic deposits.

Shareholders’ equity, after minority interest, rose 3 percent SAR20.4 billion as of March 31, 2024, compared to SAR19.7 billion in the same quarter of 2023. 

Despite the Saudi budget deficit and slowing GDP growth, the kingdom’s non-oil private sector started the second quarter of 2024 on a positive note, according to Riyad Bank’s latest Purchasing Managers’ Index survey.

“This uptrend hints at an anticipated spike in the non-oil GDP, likely exceeding the 4.5 percent mark for this year,” said Naif Al-Ghaith, chief economist at Riyad Bank.

Tourism minister Ahmed Al-Khateeb told the Qatar Investment Forum this month that Saudi Arabia will invest more than $800 billion in its main giga-projects by the next decade as part of a tourism expansion strategy focused on affluent tourists in China, India and Europe.

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