Saudi Arabia’s Jabal Omar Development Co.(JODC), the developer behind the mega mixed-used project in Makkah, said losses were trimmed by 38% to 79.84 million riyals ($21.28 million) in Q2 2023, compared to 128.62 million riyals a year ago.

The lower losses were driven by a 61% year-on-year (YoY) increase in revenue due to the strong improvement in hotel occupancy and average room rates and a 45% YoY drop in financial charges.

The developer narrowed its H1 2023 losses by 78% to 67.9 million riyals from 311.1 million riyals in the same period last year.

Revenue almost doubled to 771.54 million riyals in the first six months, compared to 391.29 million riyals a year earlier.

The company’s accumulated losses stood at 68 million riyals, or 0.59% of its capital, by the end of June 30, 2023.

Last month, the developer agreed to sell a plot of land it owns in Makkah for 521.2 million riyals to Areeb Advanced Real Estate Company.

The Jabal Omar master plan consists of several phases, with a land area of over 235,000 square metres (sqm) and a built-up area of over 2.5 million sqm with a total of 46 towers which include hospitality, commercial and residential developments.

(Editing by Seban Scaria seban.scaria@lseg.com)