$766 million in profits of listed Saudi real estate companies in the first half

Real estate sector companies listed on the Saudi Stock Exchange (Tadawul) witnessed strong financial performance during the first half of 2026. Real estate sector companies listed on the Saudi Stock Market (Tadawul) witnessed strong financial performance during the first half of 2026, as their combined profits exceeded the barrier of $766 million (2.87 billion riyals). Despite recording a decrease of 18 percent, compared to the same period last year, the results reflect the sector’s flexibility and ability to adapt, supported by an increase in real estate sales, accelerating project implementation, and diversifying revenues. While 14 companies succeeded in achieving net profits compared to losses for only three companies, experts and analysts believe that the market is experiencing a stage of regulatory and structural restructuring. It is based on transparency, governance and business model differentiation, making the second half of the year a candidate for selective improvement for the most operationally and financially efficient companies. Sinomi Centers topped the sector's most profitable companies during the first half, achieving 588.2 million riyals, a decline of 14.7 percent from the same half of the previous year. “Real Estate” ranked second among the most profitable companies in the sector after achieving profits of about 579 million riyals during the first half, recording a jump in the growth of its profits over the same half of the previous year by 152.2 percent. Dar Al Arkan ranked third, achieving about 498.97 million riyals, a growth of 11.4 percent. At the level of the second quarter of the current year, the sector’s companies recorded a slight decrease in profits amounting to 0.49 percent, and their combined profits reached 1.455 billion riyals, compared to

1.462 billion riyals in the same quarter of 2025. Commenting on the results of the sector companies, the CEO of Manassat Real Estate Company, Khaled Al-Mubayed, said during his statement to Asharq Al-Awsat that the disparity in the financial results of the real estate sector companies is normal, explaining that the reality of the sector companies does not speak of a single business model; There are companies that rely on development and sales, others on leasing and recurring income, and others whose results are linked to major projects or specific seasons and destinations. He continued: “Therefore, we may see a company achieve a significant jump in profits as a result of delivering projects, selling assets, or improving profitability margins, while another company’s profits decline despite the continued strength of its operational activity.” Al-Moubayed pointed out that Al-Aqaria’s recording of a jump in profits and the growth in Dar Al-Arkan’s profits reflect the ability of some developers to benefit from projects, sales, and accumulated demand, while the decline in profits from “Sinomi Centers” does not necessarily mean a weakness in the real estate market as a whole, but rather confirms that the performance of each company must be read according to its business model, its sources of revenues, and its financing structure. Reshaping the system