Riyadh-Mubasher: The combined earnings of Saudi real estate developers reached SAR 1,190 billion in the first six months of 2015, rising 11% compared with SAR 1,075 billion in the same period of 2014.

However, the second-quarter earnings of the eight listed developers fell 27% year-on-year from SAR 562.37 million to SAR 410.68 million.

The earnings were mainly hurt by Dar Al-Arkan and Emaar Economic City which accounted for 29% of the sector’s Q2 earnings.

Jabal Omar swung to profitability in H1, as it recorded earnings of SAR 224.7 million, against SAR 3 million losses in the similar period of 2014. The company also achieved earnings of SAR 75.4 million in Q2-15, accounting for 19% of the sector’s combined profits.

Emaar EC suffered losses of SAR 7.9 million in H1-15, versus earnings of SAR 13 million in the corresponding period of 2014, due to low profit margin and decline in land sale earnings.

The sector’s Q2 combined operating profits declined 18% year-on-year from SAR 650.60 million to SAR 530.74 million.

H1 operating profits rose 2% to SAR 1.29 billion compared with H1-14.

Arriyadh Development’s operating profits climbed 47% y-o-y from SAR 98.2 million to SAR 144.4 million, while those of Emaar dropped 46% or SAR 133.2 million compared with a year earlier.

Translated by Abdul Maguid Aboshahla