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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) 
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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.

 

 

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Business

TotalEnergies to Honor All LNG Contracts Despite Qatar Outages

FILE PHOTO: The logo of French oil and gas company TotalEnergies is seen at a petrol station in Paris, France, March 25, 2026. REUTERS/Abdul Saboor/File Photo
FILE PHOTO: The logo of French oil and gas company TotalEnergies is seen at a petrol station in Paris, France, March 25, 2026. REUTERS/Abdul Saboor/File Photo
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TotalEnergies to Honor All LNG Contracts Despite Qatar Outages

FILE PHOTO: The logo of French oil and gas company TotalEnergies is seen at a petrol station in Paris, France, March 25, 2026. REUTERS/Abdul Saboor/File Photo
FILE PHOTO: The logo of French oil and gas company TotalEnergies is seen at a petrol station in Paris, France, March 25, 2026. REUTERS/Abdul Saboor/File Photo

TotalEnergies' CEO Patrick Pouyanne said on Thursday that the company made a decision not to declare force majeure to any of its liquefied natural gas customers, and that it would respect all the LNG contracts in terms of price and ⁠volume.

Qatar, the world's biggest ⁠LNG producer, has declared force majeure on all of its LNG output after being attacked as part of the US-Israeli war with Iran.

"We said to our customers we will ⁠not invoke force majeure and not deliver the gas... We want to be security of supply for our customers," Pouyanne said.

"Yes, we'll miss energy coming from Qatar and Abu Dhabi, but our portfolio is large enough to redirect part of it," he added, according to Reuters.

Analysts estimate TotalEnergies takes 5.2 million metric tons per annum (mtpa) from ⁠its ⁠share of the QatarEnergy LNG trains.

Sources have said Shell, the world's biggest LNG trader, had declared force majeure on cargoes it buys from QatarEnergy and sells on. Analysts estimate Shell takes 6.8 mtpa of Qatari LNG.

Pouyanne also said that the current energy crisis makes renewables more attractive as they are not subject to the volatility from geopolitical instability.

Business

India Secures 60 Days of Oil Supply amid Hormuz Disruption

Small boats sail loaded with goods in front of a container ship in the waters of the Strait of Hormuz off the coast of Oman, June 25, 2025 (AFP)
Small boats sail loaded with goods in front of a container ship in the waters of the Strait of Hormuz off the coast of Oman, June 25, 2025 (AFP)
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India Secures 60 Days of Oil Supply amid Hormuz Disruption

Small boats sail loaded with goods in front of a container ship in the waters of the Strait of Hormuz off the coast of Oman, June 25, 2025 (AFP)
Small boats sail loaded with goods in front of a container ship in the waters of the Strait of Hormuz off the coast of Oman, June 25, 2025 (AFP)

India has secured crude oil supplies for the next 60 days, ensuring stable fuel supplies in the country despite disruption in shipments from the Middle East, the oil ministry said in a statement on Thursday.

India, the world's third biggest oil consumer and importer, was buying over 40% of its oil imports from the Middle East. Those supplies are disrupted due to the US-Israeli war on Iran.

Higher availability of crude in global markets, mainly from the Western hemisphere, has helped offset the shortfall, the government said.

Taking advantage of a temporary US waiver, Indian refiners have also ramped up purchases of Russian crude, securing millions of barrels to fill the supply gap.

"Despite the situation at the Strait of Hormuz, India is today receiving more crude oil from its 41-plus suppliers across the world than what was previously arriving through the Strait," the ministry said.

As a net exporter of petroleum products, India’s domestic availability of petrol and diesel remains structurally secure, the government said.

The world's fourth-largest refiner has oil and fuel stocks sufficient to meet 60 days of demand, against a total storage capacity of 74 days, it added.

"Nearly two months of steady supply is available for every Indian citizen, regardless of what happens globally. The next two months of crude procurement have also been secured," it added.

India has asked refiners to maximize production of liquefied petroleum gas, used as cooking fuel, as the nation was buying 90% of its LPG imports from the Middle East.

Domestic daily LPG production has been increased by 40% to 50,000 metric tons against a requirement of 80,000 tons, it said.

In addition, Indian companies have secured 800,000 tons of LPG cargoes from the United States, Russia, Australia, and other countries, it said.

These shipments, arriving across India's 22 LPG import terminals, provide roughly one month of assured supply, with further procurement underway, the government said.

Business

SAMA Licenses Two Companies to Provide Open Banking Services

SAMA Licenses Two Companies to Provide Open Banking Services
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SAMA Licenses Two Companies to Provide Open Banking Services

SAMA Licenses Two Companies to Provide Open Banking Services

The Saudi Central Bank (SAMA) announced the licensing of “Altknwlwjya aljadydh llhulul albrmjyh” and “lyn tknwlwjyz Company Saudi Arabia litqniyat nuzum almaelumat” to conduct payment services by providing account information—one of the services associated with open banking.

The licenses were granted following the successful completion of the regulatory sandbox phase under SAMA’s supervision.

The decision reflects SAMA’s ongoing efforts to support and enable the financial sector, enhance the efficiency and flexibility of financial transactions, and promote innovation in financial services. This aims to advancing financial inclusion and expanding access to financial services across all segments of society.

SAMA emphasizes the importance of dealing exclusively with authorized financial institutions. To view licensed and permitted financial institutions, visit SAMA's official website.