Saudi Real Estate Profits Jump 153% at End of 3rd Quarter

The profits of real estate sector companies in Saudi Arabia jumped by 153 percent during the first nine months of 2023. (SPA)
The profits of real estate sector companies in Saudi Arabia jumped by 153 percent during the first nine months of 2023. (SPA)
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Saudi Real Estate Profits Jump 153% at End of 3rd Quarter

The profits of real estate sector companies in Saudi Arabia jumped by 153 percent during the first nine months of 2023. (SPA)
The profits of real estate sector companies in Saudi Arabia jumped by 153 percent during the first nine months of 2023. (SPA)

The profits of real estate sector companies in Saudi Arabia jumped by 153 percent during the first nine months of 2023, compared to the same period last year, due to the growth of real estate and the major development projects implemented by the Saudi government and the private sector.

Real estate sector companies achieved an increase in their profitability during the third quarter of 2023, amounting to SAR 1.35 billion ($367.5 million) over the same period last year, after achieving consolidated profits amounting to SAR 2.23 billion ($602.1 million), compared to profits amounting to SAR 883.16 million ($238.4 million) in the same period of 2022.

The combined net profits of real estate companies listed on the Saudi Tadawul main market increased by 84.39 percent during the third quarter of 2023 on an annual basis, while 13 companies listed in the sector achieved combined profits amounting to SAR 971.04 million, compared to profits of SAR 526.64 million in the third quarter of 2022.

Real estate sector companies continued to record profitability on a quarterly basis. Their profits increased by 44.58 percent during the third quarter of 2023 compared to the second quarter of the same year, reaching SAR 671.61 million.

In sales volume and revenues, real estate sector companies recorded an increase by 13.99 percent, reaching SAR 3.29 billion, compared to SAR 2.89 billion in the same quarter of last year. Revenues in the first nine months of 2023 also increased by 9.99 percent. The companies achieved sales and revenues worth more than SAR 9.94 billion in the first nine months of 2023, compared to SAR 9.04 billion in the same period last year.



Moody's Upgrades Saudi Arabia's Credit Rating

Moody's indicated that the rating upgrade and stable outlook are results of the Kingdom's ongoing progress in economic diversification. Reuters
Moody's indicated that the rating upgrade and stable outlook are results of the Kingdom's ongoing progress in economic diversification. Reuters
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Moody's Upgrades Saudi Arabia's Credit Rating

Moody's indicated that the rating upgrade and stable outlook are results of the Kingdom's ongoing progress in economic diversification. Reuters
Moody's indicated that the rating upgrade and stable outlook are results of the Kingdom's ongoing progress in economic diversification. Reuters

The credit rating agency “Moody’s Ratings” upgraded Saudi Arabia’s credit rating to “Aa3” in local and foreign currency, with a “stable” outlook.
The agency indicated in its report that the rating upgrade and stable outlook are results of the Kingdom's ongoing progress in economic diversification and the robust growth of its non-oil sector. Over time, the advancements are expected to reduce Saudi Arabia’s exposure to oil market developments and long-term carbon transition on its economy and public finances.
The agency commended the Kingdom's financial planning within the fiscal space, emphasizing its commitment to prioritizing expenditure and enhancing the spending efficiency. Additionally, the government’s ongoing efforts to utilize available fiscal resources to diversify the economic base through transformative spending were highlighted as instrumental in supporting the sustainable development of the Kingdom's non-oil economy and maintaining a strong fiscal position.
In its report, the agency noted that the planning and commitment underpin its projection of a relatively stable fiscal deficit, which could range between 2%-3% of gross domestic product (GDP).
Moody's expected that the non-oil private-sector GDP of Saudi Arabia will expand by 4-5% in the coming years, positioning it among the highest in the Gulf Cooperation Council (GCC) region, an indication of continued progress in the diversification efforts reducing the Kingdom’s exposure to oil market developments.
In recent years, the Kingdom achieved multiple credit rating upgrades from global rating agencies. These advancements reflect the Kingdom's ongoing efforts toward economic transformation, supported by structural reforms and the adoption of fiscal policies that promote financial sustainability, enhance financial planning efficiency, and reinforce the Kingdom's strong and resilient fiscal position.