Management and development companies real estate companies listed on the Saudi Stock Exchange posted strong financial performance in 2025, driven by a marked improvement in revenues and the restructuring of of real estate portfolios, which resulted in a significant doubling of profits. The sector’s profits rose by more than 130% to reach approximately 8.1 billion riyals, compared to 3.5 billion riyals the previous year, supported by revenue growth to more than 26.4 billion riyals, representing a year-over-year increase of 15%.

Mixed Performance Among Companies
Despite this overall improvement, performance was not uniform across companies, with clear differences emerging that reflect variations in business models and revenue quality. In terms of revenue, Emaar recorded exceptional growth of 167%, bringing its revenue to 1.1 billion riyals, supported by higher sales of residential land and increased project completion rates, along with improved rental income and operating activities. It also succeeded in significantly reducing its losses to near-zero levels, driven by lower operating costs and financial restructuring.

Similarly, “Knowledge City” achieved strong revenue growth exceeding 100% to reach 319 million riyals, as a result of increased sales of residential units and land sales, however, this growth did not translate into improved profitability, as its losses rose due to higher operating expenses.
As for the other companies, “Masar” recorded revenues of approximately 2.9 billion riyals, showing strong growth, while “Red Sea” achieved revenues exceeding 3.3 billion riyals, and “Dar Al-Arkan” nearly 3.9 billion riyals, while companies such as ”Ratal,” “Jabal Omar,” and ”Sinomi Centers” each recorded revenues exceeding 2 billion riyals. In contrast, some companies saw a decline in revenue, such as ”Al-Aqaria,” “Al-Majidiyah,” and ”Banan,” due to lower land sales or the absence of non-recurring revenue.

Jebel Ali Leads in Profits
In terms of profits, ”Jebel Omar” led the pack with exceptional growth exceeding 1000%, with its net profit jumping to approximately 2.4 billion riyals, driven by land sales and improved performance at hotels and shopping centers, as well as reductions in financing and administrative costs. Dar Al Arkan also posted strong growth of 41%, with profits exceeding 1.1 billion riyals, supported by rising real estate sales and improved operating revenues.

Other companies also posted positive results, such as “Masar,” whose profits approached 1 billion riyals, and “Sinomi Centers,” with profits exceeding 1.2 billion riyals, while companies such as “Makkah” and ”Taybah” and “Ratal” posted moderate growth. In contrast, ”Banan””s profits declined slightly due to lower revenues and higher financing costs, while some companies continued to post losses, such as ”Knowledge City“ and ”Red Sea,“ although some of these losses were smaller than in the previous year.

This sector is considered one of the key pillars of the Saudi economy, given its direct link to investment activity and domestic demand, in addition to its role in supporting urban development plans. The sector comprises approximately 17 listed companies, with a total market capitalization estimated at 841 billion riyals, making it a mid-cap sector in the market; however, it is highly sensitive to economic changes, particularly interest rates and financing costs.
Despite improved operating performance, the sector index experienced significant volatility during 2025, recording a decline ranging from 10% to 20%, reflecting a gap between corporate earnings and market valuations, amid ongoing concerns related to financing and an increase in real estate supply.

A pivotal role for the ”white land" system
In a related context, the "White Land" system played a pivotal role in reshaping the sector, as it encouraged companies to develop land rather than hold onto it, which led to an increase in supply and accelerated the capital cycle. Companies with operational capabilities benefited from this shift, while those reliant on holding onto land faced pressures due to rising costs.