Al Kathiri: A look at subsidiaries’ plans for 2025

Subsidiaries, expected financial performance, future plans

Subsidiary

Activity

Financial Performance

Future plans/ Expectations

Msandh Alemdad

Construction, maintenance, transportation, and logistics

Key Markets: Saudi Arabia – Qatar

Revenues grew from SAR 32.4 million to SAR 92.1 million, driven by expansion in both government and private sector projects.

Gross profit declined to SAR 3.3 million in 2024, compared to SAR 8.7 million in 2023.

Continued growth in both local and international markets through new investments in the construction and infrastructure sector.

Expansion into strategic projects that contribute to the Kingdom’s economic development in line with Vision 2030, focusing on infrastructure and logistics services.

Geographic expansion by exploring entry into new GCC markets, with a focus on enhancing the company’s competitive capabilities.

Alian Industry

Production and supply of ready-mix concrete

Key Markets: Saudi Arabia – Bahrain

Revenues grew from SAR 104 million to SAR 177.3 million, driven by expansion in major ready-mix concrete projects and product diversification within the concrete segment.

Gross profit increased to SAR 18.7 million in 2024, compared to SAR 14 million in the previous year.

Improving cost efficiency and increasing operational effectiveness to reduce expenses and boost profits.

Alian Co. aims to export M2 technology to new international markets.

The company plans to make significant investments in expanding its production capacity to enhance efficiency and productivity.

Contributing to the shift towards sustainable construction by offering products such as green concrete and promoting the use of low environmental impact technologies.

Terrace Town

Property management and real estate brokerage

Key Market: Saudi Arabia

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The company expects a compound annual growth rate (CAGR) of 28% in revenues over the next five years, reaching SAR 12 million by 2030.

This growth is driven by increased demand for real estate development services and the expansion of marketing solutions.

The profit margin is expected to gradually improve, reaching 30% by 2030.
 

Key Future Plans:

Geographic expansion: Enter new markets within Saudi Arabia, particularly in cities undergoing significant urban development.

Strategic partnerships: Collaborate with major real estate developers and investors to expand the scope of operations.

Innovation in design and real estate development: Focus on developing modern residential and commercial projects that meet the evolving market needs.

The Luxury Yacht

Luxury yacht and recreational boat manufacturing

Production capacity reached 150 units annually across six diverse product lines.

Key Market: Saudi Arabia

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Revenues are expected to continue rising with the expansion of the factory and increased demand for luxury yachts and recreational boats.

After overcoming initial operating losses, the project is expected to maintain a stable annual net profit between SAR 24 and 26 million in the coming years.

The return on investment (ROI) is expected to exceed 90% due to the stability of revenues and profits.

Liabilities are anticipated to remain low compared to assets, which will reduce financial risks.

Saraya Al Dyar Investment

Hotel development, management, and operations

Key Market: Saudi Arabia

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Revenues are expected to reach SAR 31.8 million by 2028, with a steady annual growth rate, alongside gradual growth in net profits.

It is anticipated that the hotel facilities being developed will be fully utilized to maximize returns.