Jabal Omar plans to diversify sources of finance, says CEO

Jabal Omar Development Co.’s (Jabal Omar) plan to finance the coming phases of the project will not rely solely on borrowing as it will diversify its sources of finance, CEO Yasser Faisal Al Sharif told CNBC Arabia.

The diversification strategy may include sukuk issuance, real estate traded funds (REITs) or financing products, as well as partnerships with investors, in order to share both the risks and profits, he said.

Commenting on Q3 results, he said that the firm reported growth and big revenues from the sales of ready-made residential units.

Sources of income have remarkably developed. There’s an increase in demand for the firm’s products, which will reflect on off-plan sales of Jabal Omar’s phases in the near future, Al Sharif said.  

As for the firm’s expansion plans, it’s working on finishing Jabal Omar project, which saw a 500,000 meters’ increase in investment areas, he added.

According to data compiled by Argaam, Jabal Omar reported a net profit of SAR 469.6 million in Q3 2018, compared to a net loss of SAR 594 million a year earlier.