Kingdom Holding’s profit rises 36% to $319m

Alamy via Reuters

Kingdom Holding Company (KHC), founded by Saudi billionaire Prince Alwaleed Bin Talal and the developer behind what will be the tallest tower in the world, said nine-month 2024 net profit jumped 36 percent to SAR1.2 billion ($319.4 million) from SAR856 million a year ago.

The higher profit was driven by an increase in the share of results from equity-accounted investees, a decrease in financial charges, an increase in gain on the sale of investment property, a decrease in withholding and income tax, an increase in hotels and other operating revenues.

A decrease in Zakat – a form of alms-giving, and one of the five pillars of Islam – was also cited.

Revenue fell 7 percent year on year to SAR1.8 billion due to a decline in dividend income despite increasing hotels and other operating income.

Third quarter profit fell 11 percent annually to SAR347 million from SAR391 million a year earlier. The decline was led by increased hotel and other operating costs, a fall in finance income and lower dividend income.

The top line grew marginally to SAR612 million from SAR608 million a year earlier, supported by higher hotel revenues and other operating segments.

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In October, the company said construction is to resume on the world’s tallest tower in Jeddah, which will be over one kilometre high when completed.

Jeddah Economic Company, an associate of Kingdom Holding, reached an agreement with Saudi Binladin Group to continue developing the Jeddah Economic Company Tower.

In July, Kingdom Holding, Sumuo Holding Company and JEC signed an agreement to take ownership of the Al Inma Jeddah Economic Fund, which is currently wholly owned by JEC.