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Makkah Construction and Development logo
Makkah Construction and Development Co. witnessed improvement in room occupancy rates, on the resumption of Umrah and prayers at the Grand Mosque, board member Ziad Albassam told Al-Arabiya TV.
Albassam also expects the occupancy rates to rise amid the fading impact from the COVID-19 pandemic. He said the company will likely return to 2019 levels in the fourth quarter of this year.
The company set aside huge provisions, which were divided between provisions for doubtful debts, provisions for receivables related to development and provisions for Zakat.
Despite not making profit in the year ending Rabie Al-Thani, 1442H, the company has retained earnings of more than SAR 160 million, Albassam said.
The company's statutory reserves are above 50% of capital, which is higher than the regulatory requirements of 30%, he noted.
During the low turnout of visitors in the central area of Makkah, the company carried out several projects, including the direct linking of the company's project to the First Ring Road, which is under execution. It also took advantage of low occupancy rates through carrying out renovations for all units and rooms in the project and the hotel, Albassam stated.
He added that the company gave tenants a six-month relief from rent, which was extended to 8 months.
Makkah Construction logged SAR 59 million loss by the year ending Rabie Al-Thani, 1442, against SAR 236 million profit a year earlier.
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