Jabal Omar’s revenue will increase in the first quarter of 2022 as the Hajj and Umrah sector recovers after easing the constraints of the Corona pandemic

Mecca, Kingdom of Saudi Arabia: Jabal Omar Development Company (the “Company”) (Tadawul: 4250), one of the largest real estate developers in the Kingdom of Saudi Arabia, today announced its first quarter financial results for the period ended 31 March 2022.

Striking financial results

thousand real

(unless otherwise noted)

First term


First term


Annual percentage change


109 647

21 573


income cost

(135 385)

(110 019)


total loss

(25 738)

(88 446)


operational loss

(72 225)

(137 568)


Financial costs

(112 030)

(209 761)


net loss

(182 462)

(345 453)


  • The company’s revenue during the first quarter of 2022 increased by 408% year-on-year, driven by the growing activity of its hotel and retail operations. Over the course of the three months, the Jabal Omar project witnessed the return of a larger number of hotel guests, in conjunction with the relief of Covid_19 travel measures and the Hajj and Umrah sector, resulting in:
    • Revenue from hotel assets increased 4 times compared to the same period last year.
    • Retail asset income increased 11 times compared to the same period last year.
  • The company has managed to significantly reduce its total losses to 25.7 million Saudi Riyals during the current period, compared to the first quarter of 2021. Given that a large part of the cost of the company’s activity in the form of fixed liabilities, the cost of income will continue to affect the performance of the total profit until The company returns to operate its assets at full capacity.
  • During the first quarter of 2022, the company recorded operating losses of 72.2 million Saudi Riyal, which significantly reduced the losses recorded in the first quarter of 2021. This is mainly due to Jabal Omar Company which has taken strict measures on cost control and implemented initiatives to improve operating activities. efficiency.
  • Financial expenses during the first quarter of 2022 decreased by 46.6% on an annualized basis, driven by the positive results of the initiatives taken by the company within the capital structure improvement plan. The decline during the three-month period was mainly due to the settlement of loans, and the approval of the Ministry of Finance to convert a loan of 1.5 billion Saudi Riyal into a permanent secondary financial instrument.
  • The net loss during the first quarter of 2022 decreased significantly compared to the same period last year, after the company was significantly affected by the restrictions imposed on the tourism, transportation, Hajj and Umrah sectors due to the COVID-19 -pandemic.

Company’s financial position

thousand real

(unless otherwise noted)

on date

31 March 2022

on date

31 December 2021

total assets

27 191 640

26 822 578

Cash and cash equivalent

187 523

328 427

  • The company owns a large base of assets that mostly consists of countries equipped with the necessary infrastructure and distributed within unique strategic locations. By the end of the first quarter of 2022, total assets increased by 1.4% per month, in parallel with the assets of property, plant and equipment which increased by 1.1%.
  • Cash and cash equivalent increased by 37.6% on a quarterly basis, driven by the company’s proactive approach to cash management.

Regarding these results, he said: Khaled Al-Amoudi, CEO of Jabal Omar Development Company:

During the first quarter of 2022, the company achieved promising results as we continued to move forward with consistent and deliberate steps in the implementation of the comprehensive transformation plan that affected all levels of the company. The company saw an annual growth rate of 408% in revenue, driven in part by the lifting of Covid_19 restrictions following successful vaccination campaigns for more than three-quarters of the Kingdom against the virus. Therefore, we look with optimism to the future, especially with the approaching Hajj season and to the Kingdom’s success in facilitating the influx of large numbers of pilgrims to perform Umrah during the blessed month of Ramadan, which forms a strong basis for what we can expect in the future outside the pandemic, thanks to God.

As we look forward to the coming year, we are all determined to move forward in efforts to improve the company’s performance across its various levels. Our efforts to establish a strong capital structure for the company have undoubtedly contributed to a significant and drastic reduction in our financial costs, which represents a positive path for the company, contributes to increasing financial stability and paves the way for achieving sustainable growth for the company in the future. ”

Key messages:

Continued implementation of the company’s strategic transformation plan

Jabal Amal Development Company has achieved many achievements that have made a tangible contribution to improving its position at financial, operational and institutional levels, enhancing its ability to achieve sustainable financial stability and increase its operational efficiency. Based on its thoughtful approach to improving its capital structure and managing its cost base while maximizing the benefit of revenue-generating opportunities, Jabal Omar Development Company succeeded in rewarding its efforts with a strong performance during the first quarter of 2022 AD. to the momentum of its strong results achieved during the last period. As the company continues to move forward to translate the goals of its strategic transformation plan, it is mobilizing its forces to continue this momentum until the end of this year.

The company continues to reap the benefits of its aggressive approach and efforts to manage expenses and costs

As part of the strategic transformation plan, the company continues its deliberate approach of reducing expenses and managing its cost base by restructuring its capital and improving its performance across all its businesses and activities.

Implementation of the construction works in the second and third phases of the project according to the specified schedule

Jabal Omar Development Company continues to move forward with accelerated steps in the implementation and delivery of its project in line with its strategic priorities and based on the objectives of its transformation plan. In this regard, the company has made a number of improvements and developments over the past two years, including increased levels of cost transparency and project completion dates, as well as a comprehensive corporate restructuring of project management teams aimed at streamlining the company’s operations. .

These positive developments contributed to the completion of approximately 85% of the second phase of the project, which is expected to be fully operational during the first quarter of 2023. Similarly, approximately 90% of the third phase of the project was completed with expectations to start work during the third quarter of 2023. Against the background of an increase The number of visitors to the Kingdom during the coming Hajj season, the mall will be opened N1 In the third phase of the project, as well as the shopping malls and apartments in the second phase of the project before the start of the Hajj season, ensure that the expected large numbers of visitors will benefit from it.

To generate income in collaboration with the recovery of the Hajj and Umrah sector

Jabal Omar Development Company expects to continue to generate revenue gains, complementing the positive momentum over the past two quarters, along with easing the closure and movement restrictions due to the international pandemic Covid-19, in addition to increasing passenger fares and other government initiatives to curb the outbreak of the international pandemic. We expect a strong recovery in the number of visitors this year, especially the upcoming Hajj season. The company has already seen a state of recovery at the sector level, after the Kingdom of Saudi Arabia welcomed more than 6.6 million visitors to perform Hajj and Umrah during the blessed month of Ramadan 2022 AD, according to official statistics, which is an encouraging case. and a positive and strong indicator during the rest of the year 2022 AD.

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