Saudi developer Dar Al Arkan profit drops as sales shrink during pandemic.

Net income plunged 94%

  
A man walks outside the headquarters of Dar Al Arkan Real Estate Development Co. in Riyadh, October 23, 2013.

A man walks outside the headquarters of Dar Al Arkan Real Estate Development Co. in Riyadh, October 23, 2013.

REUTERS/FAISAL NASSER

DUBAI: Saudi property developer Dar Al Arkan reported a sharp drop in profits last year as sales fell.

Net income plunged 94 percent to SR18.8 million ($5 million) as overall revenues dropped 44 percent to SR1.94 billion.

A fall in the developer's lease revenue and the increase in finance costs were partially offset by an a rise in income received from Islamic deposits, it said in a Tadawul filing.

The regional real estate sector has been hit hard by the coronavirus pandemic as some buyers delayed plans for big purchases while house hunting also faced practical obstacles as lockdowns made it harder for would be buyers to visit sales offices or visit show homes.

Founded in 1994, Dar Al-Arkan Properties is headquartered in Riyadh and has contributed to the development of more than 30 commercial, residential and real estate projects in the Kingdom.

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