LONDON: The Abu Dhabi-based property developer Aldar ramped up its marketing spend in the second quarter of the year in an effort to bolster declining revenues and profits.
The company posted a 5.6 percent decline in quarter-on-quarter net profit in its results published on Thursday. Revenue also dropped by 20 percent to 1.35 billion dirhams ($367.6 million) in the second quarter, according to the company statement.
Net profit was 620.2 million dirhams in the second quarter, down from the 657.4 million recorded in the same quarter last year.
Marketing expenses increased to 23.04 million dirhams in the second quarter of the year, compared to 6.17 million dirhams spent in the same time period last year.
The higher expenses were due to “increased spend promoting Aldar properties throughout the region, particularly Saudi Arabia,” the developer said.
The company has also heightened its focus on mid-income residential property buyers. In April, Aldar launched its 1,272 unit, 1.3 billion dirhams mid-market residential development, called The Bridges, on Reem Island in Abu Dhabi.
“The unprecedented response to The Bridges, which sold out in a matter of weeks, showcases the opportunities presented by the mid-market and supports our strategy to continue to focus on this segment,” said Mohammed Khalifa Al-Mubarak, CEO of Aldar Properties.
The project contributed to Aldar’s 1.8 billion dirhams of development sales value in the first six months of 2017.
“Overall market uptake of mid-market residential product is strengthening, in contrast to high-end product,” said Mohammed Kamal, research director at Arqaam Capital.
“This should bode well for sales growth continuity and volumes at Aldar, improving earnings visibility going forward. Taking cues from Dubai, we see far more price and yield consciousness on the part of buyers in Abu Dhabi, in contrast to previous cycles. Developer margins should continue to normalize in the medium term as a result,” he said.
Aldar increases marketing spend as profit falls
Aldar increases marketing spend as profit falls
Reforms target sustained growth in Saudi real estate sector, says Al-Hogail
RIYADH: The Real Estate Future Forum opened its doors for its first day at the Four Seasons Riyadh, with prominent global and local figures coming together to engage with one of the Kingdom’s most prospering sectors.
With new regulations, laws, and investments underway, 2026 is expected to be a year of momentous progress for the real estate sector in the Kingdom.
The forum opened with a video highlighting the sector’s progress in the Kingdom, during which an emphasis was placed on the forum’s ability to create global reach, representation, as well as agreements worth a cumulative $50 billion
With the Kingdom now opening up real estate ownership to foreigners, this year’s Real Estate Future Forum is placing a great deal of importance on this new milestone and its desired outcomes and impact on the market.
Aside from this year’s forum’s unique discussions surrounding those developments, it will also be the first of its kind to launch the Real Estate Excellence Award and announce its finalist during the three-day summit.
Minister of Municipalities and Housing and Chairman of the Real Estate General Authority Majed Al-Hogail took to stage to address the diverse audience on the real estate market’s achievements thus far and its milestones to come.
Of those important milestones, he underscored “real estate balance” as a key pillar of the sector’s decisions to implement regulatory tools “with the aim of constant growth which can maintain the vitality of this sector.” He pointed to examples of those regulatory measures, such as the White Land Tax.
On 2025’s progress, the minister highlighted the jump in Saudi family home ownership, which went from 47 percent in 2016 to 66 percent in 2025, keeping the Kingdom’s Vision 2030 goal of 70 percent by the end of the decade on track.
He said the opening of the real estate market to foreigners is an indicator of the sector’s maturity under the leadership of Crown Prince Mohammed bin Salman. He said his ministry plans to build over 300,000 housing units in Riyadh over the next three years.
Speaking to Arab News, Al-Hogail elaborated on these achievements, stating: “Today, demand, especially local demand, has grown significantly. The mortgage market has reached record levels, exceeding SR900 billion ($240 billion) in mortgage financing, we are now seeing SRC (Saudi Real Estate Refinance Co.) injecting both local and foreign liquidity on a large scale, reaching more than SR54 billion”
Al-Hogail described Makkah and Madinah as unique and special points in the Kingdom’s real estate market as he spoke of the sector’s attractiveness.
“Today, the Kingdom of Saudi Arabia has become, in international investment indices, one that takes a good share of the Middle East, and based on this, many real estate investment portfolios have begun to come in,” he said.
Al-Ahsa Gov. Prince Saud bin Talal bin Badr Al-Saud told Arab News the Kingdom’s ability to balance both heritage sites with real estate is one of its strengths.
He said: “Actually the real estate market supports the whole infrastructure … the whole ecosystem goes back together in the foundation of the real estate; if we have the right infrastructure we can leverage more on tourism plus we can leverage more on the quality of life … we’re looking at 2030, this is the vision … to have the right infrastructure the time for more investors to come in real estate, entertainment, plus tourism and culture.”
