Al Kathiri Holding’s CEO expects real estate activities to resume by year-end

Meshal Alkathiri, CEO of Al Kathiri Holding Co.

Al Kathiri Holding Co. is witnessing great momentum in government construction and contracting projects that have entered the implementation stage, which will be reflected in the sector, the company’s CEO, Meshal Alkathiri, said.

In a statement to CNBC Arabia, Alkathiri noted that the positive impacts of projects such as Diriyah, Qiddiya, NEOM, and others will begin to appear during the next phase.

Alkathiri also said that the real estate sector is experiencing weakness as a result of rising interest rates, but he anticipates that activity will resume by the end of this year.

The CEO explained that the company's move to a new debt instrument is to achieve sustainability, as the company is looking to open all debt instruments available so that all sources of financing, including banks, shareholders, and sukuk, are available, which creates added value while generating profits for shareholders.

Al Kathiri Holding’s interest in issuing sukuk stemmed from a desire to avoid repeated capital increases, he said, adding that the company will use it to find the best partnerships and buy shares in companies in order to create added value and increase the company's attractiveness to shareholders in the coming period.