By Alfred Anate Mayaki

Saudi Real Estate Co (“Al Akaria”) have announced its audited annual financial results for the year ended 31 December 2025. The results reflect the company’s continued progress in executing its strategic transformation, enhancing the quality of its real estate portfolio, and contributing to the objectives of Saudi Vision 2030. During the period, Al Akaria focused on strengthening recurring revenue streams, optimizing its asset base, and improving operational efficiency across key business segments.

Revenues for the current year decreased by 5.4% (SAR 108 million) compared to the previous year, primarily due to the following key factors that influenced overall business performance and market dynamics.

Infrastructure projects revenues recorded a decrease of 20%, with a decline amounting to SAR 193 million compared to the previous period. This reduction reflects lower activity levels in key construction and development contracts, as well as delays in the execution and awarding of new projects.

The 20% drop in revenues is primarily attributed to a slowdown in public and private sector spending on large-scale infrastructure, extended project timelines, and intensified competition in tender pricing. These factors collectively impacted the overall revenue base and limited growth opportunities within the infrastructure segment.

The construction segment recorded a substantial decrease in revenues, declining by approximately 91% compared to the previous period. This sharp contraction reflects a slowdown in awarded projects, delays in project execution, and a more selective approach to bidding in a highly competitive market. 

Despite the decrease of SAR 193 million, the business continues to focus on operational efficiency, selective bidding, and strengthening relationships with strategic clients. Emphasis is placed on improving project management, optimizing resource allocation, and exploring diversified revenue streams to mitigate the impact of market fluctuations on infrastructure revenues.

Major Contracts Signed During the Year:

• Sidra 2 Project – Riyadh Signing: A construction contract for Sidra 2 Residential Complex in Riyadh with a total value of SAR 425 million, for the development of 310 villas of various sizes. 

• Al Narjis Business Park – Riyadh: Signing a construction contract for Al Narjis Business Park valued at SAR 338 million, for the development of a mixed-use complex in Riyadh on an area of 40,000 square meters

The 2025 performance was supported by disciplined financial management, prudent capital allocation, and the successful advancement of several flagship development projects in Riyadh and other strategic locations. The company also continued to enhance its governance, risk management, and compliance frameworks in line with best practices and the requirements of the Saudi Exchange and relevant regulatory authorities. Detailed financial statements, including the independent auditor’s report, statement of financial position, income statement, cash flows, and notes, are available in the full annual report published on the company’s website and through the Saudi Exchange (Tadawul) platform.