Jabal Omar CFO says catalysts exist in market as focus on retail sales grows

Jabal Omar Development Co.’s sales depend on market demand, and there are many incentives, including the decline in interest rate and improvement in the real estate market, the company’s chief financial officer Hani Zahran said in a statement to Al Arabiya TV.

The company is currently considering several opportunities to expand into new projects, in the light of the improved market, he added.

Commenting on the financial results, he explained that the decline in net profits in Q3 2019 was due to lower sales of residential units, which were affected by the summer.

The decline in sales of residential units is also due to selling a large number of residential units last year up to almost 90 units as a wholesale.

The most wholesale buyer last year was Bank Albilad Fund.

Jabal Omar is considering other wholesale sales and focuses on retail sales for being more sustainable, Zahran also mentioned.

On the company's revenues, he explained that the hotel sector constitutes an average of 60 to 70 percent of its revenues, the commercial centers sector takes over about 10 percent while the sales sector represents 20 percent to achieve a diversified income.

The real estate developer reported a net loss of SAR 80.62 million for Q3 2019, compared with SAR 469.62 million in the same period last year, according to data compiled by Argaam.