Saudi Arabia's Al-Ramz Real Estate has reported a notable growth in its profits, with an increase of 77.33% by the end of 2025, reaching 280.9 million riyals (equivalent to $74.8 million) compared to 158.4 million riyals (around $42.2 million) in 2024.
In a move reflecting its financial success, the company approved the distribution of cash dividends to shareholders for the fiscal year 2025, amounting to 1.75 riyals per share, which represents 17.5% of the nominal value.
Details of the Event
The company stated in a report on the "Tadawul" platform that the profit growth is attributed to improvements in operating margins across various business sectors, supported by progress in project execution and enhanced cost management efficiency. Additionally, the increase in fair value gains from real estate fund investments contributed to the financial results throughout the year.
Al-Ramz Real Estate also witnessed a revenue growth of 24.8% during 2025, recording 1.18 billion riyals (approximately $316.5 million) compared to 951.8 million riyals (equivalent to $253.6 million) in 2024.
Background & Context
The increase in revenues is attributed to the continued execution of the company's projects and the rising demand for residential units and other real estate activities. Revenue growth was primarily driven by heightened activity in real estate development services provided to third parties, increased development fees, along with progress in executing several projects, such as the "Rafid" project, "Al-Ramz Tower," and the "Sadeem" and "Dorat King Khalid" projects.
Sales of residential units and sales from projects under development also supported revenues throughout the year. The company experienced an improvement in rental income and property management due to increased demand for commercial and office spaces, which contributed to diversifying revenue sources and achieving balance.
Impact & Consequences
These positive results are seen as an indicator of the company's success in facing economic challenges and reflect its ability to adapt to market changes. The distribution of cash dividends underscores the company's commitment to rewarding shareholders, which may enhance investor confidence in the company's future.
These results come at a time when the real estate markets in Saudi Arabia are witnessing a notable recovery, reflecting the general trend towards investment in the real estate sector as one of the main drivers of economic growth.
Regional Significance
These results indicate that real estate companies in the Arab region, particularly in Saudi Arabia, may be well-positioned to benefit from the increasing demand for residential units and commercial projects. The success of Al-Ramz Real Estate may encourage other companies to increase their investments in the real estate sector.
In conclusion, these results reflect the ability of real estate companies to achieve growth and prosperity amid changing economic conditions, reinforcing the role of the real estate sector as one of the foundational pillars of the Saudi economy.