Arada Reports Revenue Rise But Blames War for Building Delays

The story in brief

Sharjah-based developer Arada, co-owned by princes from the Sharjah and Saudi Arabian royal families, reported a 21% increase in first-half revenue to AED3 billion ($817 million). However, earnings before interest, tax, depreciation, and amortisation (Ebitda) fell by nearly a third to AED480 million. The company attributed construction delays and supply chain disruptions to the Iran war and its impact on the regional environment. Despite these challenges, Arada's CEO, Ahmed Alkhoshaibi, expressed confidence in recovery plans and anticipates full-year Ebitda of approximately AED1.5 billion, a 6% decrease from 2025. This comes after the company revised its full-year sales target from AED15 billion to AED7 billion in May.

Detailed summary

Sharjah-based developer Arada, jointly owned by princes from the Sharjah and Saudi Arabian royal families, announced a significant increase in revenue for the first six months of the year, reaching just over a fifth year-on-year to AED3 billion ($817 million). This was revealed in an exclusive statement to Arabian Gulf Business Insight (AGBI). Despite the revenue growth, the company experienced a nearly one-third drop in earnings before interest, tax, depreciation, and amortisation (Ebitda), which fell to AED480 million.

Group CEO Ahmed Alkhoshaibi explained to AGBI that supply chain disruptions and delays in building material deliveries, stemming from the regional environment and linked to the Iran war, adversely affected construction progress. Consequently, this impacted the timing of revenue recognition for several projects. However, Alkhoshaibi affirmed that 'recovery plans are in place, and we are seeing tangible progress across our sites.' He also noted that the acquisition of non-residential businesses in the previous year, which typically have lower margins, contributed to the dilution of the group's overall Ebitda figure.

Looking ahead, Alkhoshaibi anticipates a pickup in sales during the second half of the year, projecting a full-year Ebitda of close to AED1.5 billion, which would be approximately 6 percent less than 2025. In May, the company had already adjusted its full-year sales target from AED15 billion to AED7 billion.

Sharjah, the UAE's third-largest emirate by population with 2.13 million residents as of the 2025 census, continues to attract residents due to its more affordable housing market compared to Dubai. Data from property portal Bayut indicates that the average price per square foot in Sharjah was AED916 up to July, significantly lower than Dubai's average of AED1,940 per square foot during the same period. Transaction data from the Real Estate Registration Department shows that Sharjah's real estate market has remained stable, with June recording 7,484 transactions valued at AED4.4 billion, comparable to 7,195 transactions at the same value a year prior. Mortgage transaction value also increased from AED1.3 billion to AED2 billion.

Background & context

This story sits within Saudi Arabia's broader reform agenda and efforts to grow Real estate as a pillar of non-oil GDP. The region benefits from supportive energy prices, expansionary government budgets, and rising interest from sovereign wealth funds and foreign investors.

Key numbers & facts

Sharjah-based developer Arada, co-owned by princes from the Sharjah and Saudi Arabian royal families, reported a 21% increase in first-half revenue to AED3 billion ($817 million).
However, earnings before interest, tax, depreciation, and amortisation (Ebitda) fell by nearly a third to AED480 million.
Despite these challenges, Arada's CEO, Ahmed Alkhoshaibi, expressed confidence in recovery plans and anticipates full-year Ebitda of approximately AED1.5 billion, a 6% decrease from 2025.
This comes after the company revised its full-year sales target from AED15 billion to AED7 billion in May.
Sharjah-based developer Arada, jointly owned by princes from the Sharjah and Saudi Arabian royal families, announced a significant increase in revenue for the first six months of the year, reaching just over a fifth year-on-year to AED3 billion ($817 million).

Key points

Sharjah-based developer Arada, co-owned by princes from the Sharjah and Saudi Arabian royal families, reported a 21% increase in first-half revenue to AED3 billion ($817 million).
However, earnings before interest, tax, depreciation, and amortisation (Ebitda) fell by nearly a third to AED480 million.
The company attributed construction delays and supply chain disruptions to the Iran war and its impact on the regional environment.
Despite these challenges, Arada's CEO, Ahmed Alkhoshaibi, expressed confidence in recovery plans and anticipates full-year Ebitda of approximately AED1.5 billion, a 6% decrease from 2025.

Why this matters

This matters because activity in Real estate shapes capital flows, hiring and investor sentiment across Saudi Arabia.

Economic & market impact

Potential impact: - Real estate developers and brokers may see changing demand and pricing.

Potentially related sectors

Real estate

GCC angle

For the rest of the GCC, this is a signal on the pace of activity in Real estate. Capital flows and regulatory decisions in one Gulf state typically travel across borders given the similar economic structures and the coordination inside the GCC framework.

Risks & uncertainty

There is uncertainty around the read-through: projections can be moved by swings in oil prices, by US monetary policy tightening that most GCC central banks track via dollar pegs, and by regional geopolitical events. Headline numbers may also be revised when subsequent official data is published.

What happens next?

Watch for upcoming disclosures from listed names in Real estate, official macro releases for Saudi Arabia, and any commentary from regulators or sovereign wealth funds. Tharwa will refresh this briefing as new public information becomes available.

Sources used

Arabian Gulf Business Insight