FINANCIAL NEWS

Saudi Dar Al Arkan reports 30% decline in Q2 profits

21 Jul 2010

(MENAFN) Dar Al Arkan, a real estate developer based in Saudi Arabia, said that its second-quarter earnings fell by almost 30 percent on declining sales of building-ready land, its main revenue source, AP reported.

Second-quarter net profit was broadly in line with analysts forecasts at $117 million, down 29.3 percent from $164.9 million a year earlier, Saudi Arabia’s largest property developer by market value said in a statement.

Land sales generate the bulk of revenues and profit for the firm: They accounted for 90 per cent of its revenues during the first quarter and 96 percent of its gross profit for the period.

The repercussions of the financial crisis have led to a drop in the amount of liquidity that goes into land speculation in Saudi Arabia, resulting mainly in a decline in the volume of transactions.

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