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FINANCIAL NEWS
Saudi’s Dar al-Arkan Q2 net profit declines 31.4%
22 Jul 2011
(MENAFN) Dar al-Arkan property developer said that as a result of low sales, in the second quarter, the Saudi company’s net profit declined 31.4 percent reaching USD79.4 million from USD116.5 million in 2010, reported Arabian Business.
The company added that it aimed to enhance its profit margins at its stock land plots, which formed 80 percent of the developer’s USD6 billion assets in the country.
It also said that in the second quarter, Dar al-Arkan’s operational profit also went down 37.9 percent from the same quarter a year ago to USD81.5 million, adding that the company would increase its new properties to achieve the Kingdom’s goal to construct 500,000 new houses for its constantly growing population.
It is worth noting that Saudi Arabia would need to construct around 1.65 million new houses, where property developers would have to construct around 275,000 homes annually through the year 2015 to meet demand.
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