Prime Highlights:
- Dar Al Arkan Real Estate Development Co. reported a 41% rise in annual net profit to $301 million in 2025, supported by stronger property sales across its developments.
- The company also redeemed its $400 million sukuk using internal resources, reflecting solid financial stability and improved earnings performance.
Key Facts:
- According to a filing on the Saudi Exchange, the company’s revenue increased 3.75% year on year to SR3.90 billion, while operating profit climbed nearly 19%.
- Dar Al Arkan received three white land tax invoices totaling about SR201.15 million for land plots within the Shams Ar Riyadh development.
Background:
Dar Al Arkan Real Estate Development Co. reported a strong financial performance for 2025, with its annual net profit rising 40.54 percent to SR1.13 billion ($301 million), supported mainly by higher property sales. The Saudi real estate developer said demand for its projects continued to support earnings during the year.
In a filing to the Saudi Exchange, the company stated that net profit increased from SR806.84 million recorded in the previous year. Annual revenue also saw a modest rise, climbing 3.75 percent year on year to SR3.90 billion.
The company’s operational performance also improved during the period. Operating profit grew by 18.96 percent to reach SR1.59 billion, while gross profit increased by 15.22 percent to SR1.84 billion. Dar Al Arkan attributed the higher net income mainly to the rise in property sales across its developments.
The company added that other financial factors also supported the increase in profit. Although finance costs increased during the year, the impact was balanced by higher lease revenues, lower operating expenses, and stronger income contributions from associated companies. In addition, the firm benefited from non-operating income generated through Islamic Murabaha deposits.
Dar Al Arkan’s balance sheet also showed steady growth. Shareholders’ equity after minority interest stood at SR22.22 billion as of Dec. 31, compared with SR21.09 billion a year earlier, reflecting the company’s continued financial expansion.
Separately, the developer announced in February that it had completed the full redemption of its $400 million sukuk at maturity. The company said it used internal resources to repay the sukuk and transferred the required amount to the designated account. The financial impact of the redemption is expected to appear in its first-quarter financial results.
Meanwhile, the company disclosed that it had received three invoices related to white land tax for plots located within the Shams Ar Riyadh development. The invoices total about SR201.15 million and were issued under the Wafi off-plan sales program.
In an earlier disclosure, Dar Al Arkan stated that approximately 2.83 million square meters of its land portfolio fall under Saudi Arabia’s White Land Tax Law.
