Top Saudi developer posts 11pc Q2 growth
Riyadh, July 7, 2012
Saudi Arabia's Dar al-Arkan, the kingdom's largest property developer, said its second-quarter net profit rose 11 per cent to SR331 million ($88 million), missing analyst expectations.
A group of six analysts had forecast that Dar Al Arkan would achieve a net profit averaging SR424 million.
The firm made SR331 million profit in the three months ending June 30, compared to SR 298 million in the same period a year earlier, it said in a bourse statement on Saturday.
Operational profit too increased 11.8 percent in the second-quarter to SR341.7 million, compared with SR305 million in the same period a year earlier, it said.
"The increase in net income for the six month period and the second quarter this year compared... is primarily due to the increase in real estate sales, which is attributable to the demand increase on the company's products," the statement said.
The kingdom's real estate sector is characterised by very strong demand for housing and was given a further boost in early July when the government said it had approved a mortgage law that will regulate lending to house buyers.
Dar Al Arkan said in May it would book gains from a SR741.7 million-land sale in its second-quarter results.-Reuters