BNC report lists top Saudi development projects

New Jeddah Downtown — Phase 1
Updated 09 February 2018
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BNC report lists top Saudi development projects

A significant number of expansion and redevelopment projects are among the 10 highest value construction projects in Saudi Arabia, according to the latest “Top Projects in Saudi Arabia” report prepared by the BNC Network for The Big 5 Saudi. The multi-development expansion of Makkah’s Grand Mosque and the redevelopment of Jeddah’s downtown are included in the list.
The BNC report revealed that the expansion and redevelopment of existing structures and areas is a main theme.

1. Al-Faisaliya City
The $25 billion Al-Faisaliya City concept for the western coast of Makkah stands at the top of the BNC list in value. The development will spread across an area of 2,450 square kilometers and will provide 995,000 housing units to accommodate 6.5 million people.

2. Grand Mosque
With an estimated completion date of mid-2018, the $21.3 billion expansion project will be divided into three phases. The expansion will include the addition of a new seven-story building with 74 prayer halls, an ornate prayer hall spread over 250,000 square meters and a 5,000-square-meter central ceremonial area.

3. Dahiyat Al-Fursan
Valued at $20 billion and due for completion by 2020, the residential project involves the construction of 100,000 houses and infrastructure works.

4. Al-Ruwaid redevelopment
The Jeddah-based project is expected to be completed by 2030. It involves the redevelopment of Al-Ruwais district and transforming a slum area into an urban district.

5. King Abdullah Security Compounds — Phase 5
Phase 5 of the King Abdullah Security Compounds under development by the Ministry of Interior is valued at $8 billion and is expected to be completed this year. The entire project will involve the construction of 369 security compounds.

The other projects in the list include: Al-Shamiya and Mataf expansion, Mall of Saudi, New Jeddah Downtown — Phase 1, The Avenues — Al-Malqa, and Riyadh Medical Village.
Event Director for The Big 5 Saudi, Roni El-Haddad, said: “The call made by Saudi Vision 2030 to diversify KSA’s economy is driving construction activity across all markets; government plans to strengthen religious tourism anticipate an influx of pilgrims to the Grand Mosque and Mataf instigating its expansion, additionally there is increasing demand by young people for higher quality urban areas, the development of which currently makes up 70 percent of all construction activities in Saudi Arabia.”


GFH reveals boost in first-half profits

Updated 14 August 2018
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GFH reveals boost in first-half profits

GFH Financial Group has announced that net profit attributable to shareholders rose to $72.5 million in the first six months of 2018, a 16.7 percent increase from the same period a year earlier. The group also reported a consolidated net profit of $73.4 million in the first half of the year, a rise of 12.1 percent.

Net profit attributable to shareholders for the second quarter increased by 19.2 percent to $36 million. Consolidated net profit during the quarter rose to $36.5 million, an increase of 14.1 percent.

Earnings per share for first half of the year was 2.02 cents, compared with 2.51 cents in the first six months of 2017. Earnings per share for the second quarter was 1 cent, compared with 1.22 cents in the same period of 2017.

Total consolidated revenues in the first half, grew by 12.5 percent to $124.2 million, primarily from revenues generated by its investment-banking business. This included income generated from investment placements for private equity and real-estate transactions. Consolidated revenues for the second quarter stood at $63.7 million, an increase of 4.8 percent.

Profit before impairment allowance for the first half of the year was $79.1 million, an increase of 34.1 percent. Consolidated operating profit for the second quarter increased by 23.5 percent to $40.5 million. Total operating expenses for the first half fell to $45.1 million from $51.4 million. Operating expenses for the second quarter dropped to $23.2 million from $28 million a year earlier.

Equity attributable to shareholders was $1.11 billion for the first half, compared with $1.14 billion a year ago. The total assets of the group increased by 10.3 percent to $4.3 billion.

“We are pleased with the continued growth in profitably for the first half of 2018,” said GFH Chairman Jassim Alseddiqi. “Enhanced results and revenue generation for the period were supported by increased contributions from the group’s investment-banking business, where it continues to demonstrate a strong ability to identify and bring to the market unique investment opportunities.”

Hisham Alrayes, the group’s CEO, added “In line with the Group’s strategy, the ongoing growth in our investment-banking business continues to drive enhanced results and profitably. In particular, during the period, improvements in income generation came from a number of strategic deals, including our landmark investment in the UAE-based Entertainer, and a notable trophy real-estate asset in Chicago.”