عربي English Türkçe اردو فارسى
Logo
Latest News
Business

Saudi Real Estate Development Sector Expands as Al Majdiah Prepares for IPO

People look at models of residential projects at the Cityscape exhibition held in Riyadh. (SPA) 
People look at models of residential projects at the Cityscape exhibition held in Riyadh. (SPA) 
TT
TT

Saudi Real Estate Development Sector Expands as Al Majdiah Prepares for IPO

People look at models of residential projects at the Cityscape exhibition held in Riyadh. (SPA) 
People look at models of residential projects at the Cityscape exhibition held in Riyadh. (SPA) 

Saudi Arabia’s booming real estate development sector continues to cement its role as a cornerstone of the national economy, driven by Vision 2030 reforms and rising housing demand.

In a move highlighting the sector’s growth, Al Majdiah Real Estate Company announced plans to offer 30% of its capital in an initial public offering (IPO), becoming the 16th real estate firm to be listed on the Saudi stock exchange (Tadawul).

Founded in 2014, Al Majdiah has rapidly grown through restructuring and mergers of family-owned real estate entities. The company evolved into a closed joint-stock firm with a capital of SAR 300 million (approx. $80 million). Over the past decade, it has developed more than 2.5 million square meters of land and delivered over 180 residential and commercial projects, providing homes for more than 70,000 beneficiaries.

In 2024, the company posted revenues of SAR 1.4 billion ($373 million), marking a 35% increase from the previous year. Net profits surged by 45% to SAR 214 million ($57 million). The upward trend continued into Q1 2025, with profits reaching SAR 102 million ($27.2 million), according to the IPO prospectus. Subscription to the IPO is set to begin on Thursday, August 14, and will run through Monday.

Al Majdiah’s offering reflects broader momentum in Saudi Arabia’s real estate development sector, which recorded the highest revenue growth among all sectors on the exchange in 2024, rising by 37% to SAR 20.7 billion. Notably, the sector welcomed the IPO of Umm Al-Qura for Development & Construction, the developer behind Makkah’s “Destination Masar” project.

Experts advise prospective investors to assess key fundamentals such as financial health, project diversity, location quality, management efficiency, and adherence to corporate governance standards. Khalid Almobid, CEO of Menassat Real Estate, emphasized that firms with a focus on residential development and flexible financing structures are best positioned for sustainable growth, especially amid government housing initiatives.

Real estate analyst Mutar Al-Shamari added that investors should carefully evaluate expected returns, risk levels, investment duration, and the company’s long-term strategy. He also highlighted the increasing appeal of the Saudi property market, fueled by large-scale developments like NEOM, Diriyah Gate, and ROSHN.

 

 

Most Viewed

 
 
Business

Google to Pay Musk $920 Million a Month for AI Computing Capacity

The headquarters of Space Exploration Technologies Corp. (SpaceX) in California. (AFP)
The headquarters of Space Exploration Technologies Corp. (SpaceX) in California. (AFP)
TT
TT

Google to Pay Musk $920 Million a Month for AI Computing Capacity

The headquarters of Space Exploration Technologies Corp. (SpaceX) in California. (AFP)
The headquarters of Space Exploration Technologies Corp. (SpaceX) in California. (AFP)

SpaceX on Friday signed a blockbuster cloud computing agreement under which Google will pay the Elon Musk-founded rocket company $920 million per month for access to a massive cluster of AI chips, according to a disclosure in its initial public offering filing.

The deal, which will bolster SpaceX's finances ahead of its IPO on June 12, covers a computing infrastructure of approximately 110,000 Nvidia GPUs -- the crucial hardware needed to power Google's Gemini AI models.

The filing says Google will begin paying the full monthly rate in October 2026, with a reduced fee applying during a ramp-up period until then, AFP reported.

The agreement runs through June 2029, implying total payments of roughly $30 billion over the life of the contract.

The deal resembles one struck with AI giant Anthropic, in which SpaceX leased compute capacity at its Colossus data centers in Memphis, Tennessee for $1.25 billion a month.

The facilities were originally built to power Musk's rival AI venture, xAI.

SpaceX's IPO filing revealed that xAI last year posted an operating loss of $6.4 billion on total revenue of $3.2 billion.

"This is a short-term, timely agreement to ensure we have bridge capacity to meet surging customer demand for our agent platform, Gemini Enterprise, which has been even higher than we expected," a Google Cloud spokesperson said in an email to AFP.

The filing adds that after December 31, "the agreement may be terminated by either party upon 90 days' notice."

The deals with Google and Anthropic come just days ahead of SpaceX's IPO, which will be the biggest in history, valuing the company at $1.8 trillion.

That valuation is largely based on faith that Musk can deliver on his ambitions to vastly expand his Starlink satellite business, put data centers into space using SpaceX rockets, as well as begin colonizing Mars.

Business

Rosneft: US Companies Benefit from Strait of Hormuz Closure

Igor Sechin, Chief Executive Officer of Rosneft, during the St. Petersburg International Economic Forum, June 5, 2026 (Reuters).
Igor Sechin, Chief Executive Officer of Rosneft, during the St. Petersburg International Economic Forum, June 5, 2026 (Reuters).
TT
TT

Rosneft: US Companies Benefit from Strait of Hormuz Closure

Igor Sechin, Chief Executive Officer of Rosneft, during the St. Petersburg International Economic Forum, June 5, 2026 (Reuters).
Igor Sechin, Chief Executive Officer of Rosneft, during the St. Petersburg International Economic Forum, June 5, 2026 (Reuters).

Rosneft Chief Executive Igor Sechin said on Saturday that US energy companies were the main beneficiaries of the closure of the Strait of Hormuz but warned that continued tensions in the artery for one fifth of the world's crude would undermine long-term demand for oil.

Iran blockaded the Strait, the main route for about a fifth of world oil supplies and other vital goods including fertilisers, after the United States and Israel attacked Iran and killed Supreme Leader Ali Khamenei in February. The US has blockaded Iranian ports.

Sechin, a close ally of President Vladimir Putin and one of the most influential men in Russia's energy sector, cast the US actions as an attempt to change the fundamental contours of the global energy markets to suit US interests, but added that the strategic risks had not been fully assessed.

"The closure of the Strait of Hormuz is an attempt to reshape global energy market regulations to benefit the United States. The measures taken to block the strait were aimed at Iran, but backfired on the entire world. The strategic risks were underestimated," Sechin said at the St. Petersburg International Economic Forum.

"The main beneficiaries, of course, were American companies, which gained non-competitive advantages and the ability to secure high-cost supplies," he said.

"Continued tension in the Strait of Hormuz for a long time undermines the long-term demand for oil. It may also trigger another surge of interest in alternative energy."

If the Strait opens in the near future, then the oil price will be at $95 to $96 per barrel by the end of the year, and in a year it will drop to $80 to $85, and by the second half of 2027 there will be a return to market fundamentals, he said.

Business

First Two of Riyadh Air’s Custom-Built 787-9 Dreamliners Arrive in Saudi Arabia

The arrival of Riyadh Air's two aircraft marks a historic milestone in the company's journey towards launching its flights (SPA)
The arrival of Riyadh Air's two aircraft marks a historic milestone in the company's journey towards launching its flights (SPA)
TT
TT

First Two of Riyadh Air’s Custom-Built 787-9 Dreamliners Arrive in Saudi Arabia

The arrival of Riyadh Air's two aircraft marks a historic milestone in the company's journey towards launching its flights (SPA)
The arrival of Riyadh Air's two aircraft marks a historic milestone in the company's journey towards launching its flights (SPA)

Riyadh Air, Saudi Arabia’s new national carrier and a company wholly owned by the Public Investment Fund (PIF), has announced the arrival of its first two custom-built Boeing 787-9 Dreamliners at King Khalid International Airport in Riyadh.

The aircraft arrived in tandem on Friday at approximately 10 a.m. local time, receiving a water cannon salute upon touchdown.

The aircraft – using the call signs Riyadh 1 and Riyadh 2 and registered as HZ-RXAA and HZ-RXAB – are the first of Riyadh Air’s 72 state-of-the-art Dreamliners.

Their arrival marks the commencement of the carrier's broader strategy to expand its fleet to more than 180 narrow-body and wide-body aircraft.

Leveraging Saudi Arabia’s strategic location at the crossroads of Asia, Africa, and Europe, Riyadh Air aims to connect the capital to over 100 global destinations by 2030, with plans to fly to nearly 20 destinations by the end of this year.

Commenting on the arrival, Riyadh Air CEO Tony Douglas said: “To see our very first custom-built Dreamliners touch down in Riyadh is a truly historic moment for us, and a momentous day for Saudi aviation as part of Vision 2030. I could not be more excited or more confident about the future and the legacy we are creating.”

“Not only are we building an airline, we are opening a new gateway to the world from the heart of the Kingdom. We are absolutely ready and excited to welcome the world to Riyadh,” he added.