ARDCO investment portfolio totals SAR 6.3B: CFO

Mohammed Al-Kulaib, CFO of Riyadh Development Co.’s (ARDCO)

Riyadh Development Co.’s (ARDCO) investment portfolio totals approximately SAR 6.3 billion, said the company’s CFO Mohammed Alkulaib.

The portfolio includes the SAR 3.5-billion Sports Boulevard project, where ARDCO holds a 30% stake and serves as the real estate developer, he told Al Arabiya TV.

Alkulaib explained that the company signed an agreement with the Arab National Bank (ANB) to establish a SAR 1.8 billion real estate investment fund to develop infrastructure for raw land, holding an 8% stake, in addition to being the project developer.

Additionally, ARDCO partnered with Agility to develop a logistics complex in east Riyadh at a cost of SAR 227 million, holding a 40% stake in the joint venture.

He noted that the company’s total share of these projects is approximately SAR 2.8 billion.

Alkulaib further revealed that ARDCO is currently exploring the best investment options for the land it acquired from Remat Al-Riyadh Development Co. in Riyadh.

The company is also considering developing a mixed-use complex in the Al-Murooj district and plans to build infrastructure in Al-Rimal district, he said, disclosing the possibility of either launching various real estate projects or selling the land after development.

The company will announce final details once the designs are completed and optimal uses are determined, the CFO said, expecting a positive impact on revenue and value-addition to shareholders.

He highlighted that ARDCO aims to strengthen its strategic relationship with Remat Al-Riyadh, the investment arm of the Riyadh Municipality, and secure prime locations for major real estate developments in the capital.

Speaking on the recently signed memorandum of understanding (MoU) with Saudi Agricultural and Livestock Investment Co. (SALIC), Alkulaib stated that the primary objective is to develop infrastructure for public benefit markets and enhance logistics services in the agricultural sector.

Negotiations are in advanced stages, with final details expected to be announced in Q3 2025, he said.

On the company’s financial results, Alkulaib said that revenue from its shopping centers and markets reached a record high, with occupancy rates exceeding 95%, driven by infrastructure improvements, pricing restructuring, and upgrades to shopping centers, which have attracted more visitors and positively impacted rentals.

He added that the company’s seven shopping centers, spread across Riyadh, contribute 32% of the company’s total revenue, or approximately SAR 160 million. Meanwhile, the public benefit sector, which includes the Aziziyah fruit and vegetable market, accounts for around 27% of revenue, or SAR 150 million.

Associates contribute between 27% and 30%, depending on their annual sales volume, Alkulaib said, adding diversified revenues constitute about 17% of total revenue.

According to data available with Argaam, ARDCO’s net profit rose by 9% to SAR 296.2 in 2024, compared to SAR 271.5 million a year earlier. The company's Q4 2024 profit stood at SAR 89.6 million.