Al-Othaim Investment Directs Proceeds from Subscription Shares to Capital Increase and Future Investments

Al-Othaim Investment Company unveiled exceptional financial achievements for the fiscal year 2023, with net income soaring by 129% to 1.22 billion Saudi riyals. This remarkable growth was propelled by robust operational performance and fair value gains in investment properties, bolstered by significant advancements in key projects such as the mixed-use endeavour in Dammam and the commercial and hospitality centre in Jubail.

In terms of financial outcomes, total profits reached 472 million Saudi riyals, constituting 48% of revenues. This surge was attributed to the substantial expansion in entertainment business revenues across Saudi Arabia and the broader region, alongside enhanced operating margins in the commercial complexes segment.

Consolidated revenues increased by 6.3% to 980 million Saudi riyals. Moreover, the company disbursed interim dividends totalling 303 million Saudi riyals for 2023. As of December 31, 2022, shareholders’ equity stood at 5.76 billion Saudi riyals, compared to 4.86 billion Saudi riyals at the end of 2021.

Meshaal bin Omairah, CEO of Al-Othaim Investment Company, attributed the stellar results and doubled profits to the company’s expansion strategy ratified by the Board of Directors. He remarked, “This substantial leap is a testament to our robust operational performance and economic diversification efforts in key markets.”

Bin Omairah underscored the company’s intention to utilise the proceeds from the offering to bolster capital following requisite approvals, enabling it to fund ambitious expansion plans across various sectors.

Bin Omairah highlighted ongoing expansion initiatives, noting construction efforts underway to add new complexes in cities including (Riyadh – Dammam – Jazan – Medina – Al-Hofuf – Jubail – Al-Khobar – Al Mithnab – Al-Kharj – Abha – Jizan – Taif – Hail – Qurayyat). The company also witnessed significant operational growth, with expansion strategies contributing to an increased leasing area, now spanning 618,321 square meters in prime locations across the Kingdom.

Additionally, the company opened 44 new entertainment centres, 44 fashion outlets, and nine food and beverage establishments during the year. It further solidified its position through the launch of new subsidiaries in hospitality, sports, cinema, artificial intelligence, and scientific research domains, alongside the strategic acquisition of 16 brands and 226 stores from Cenomi Retail in February 2024, expected to generate an additional annual revenue of 300 million riyals.

This robust financial performance reflects Al-Othaim Investment’s dedication to innovation and strategic expansion, aligning closely with the visionary plans outlined in Saudi Arabia’s Vision 2030. Notably recognised among the top 50 real estate developers in the Gulf for 2023, Al-Othaim Investment stands as one of the Kingdom’s premier companies due to its diverse investment portfolio spanning major commercial complexes, hotels, real estate, entertainment, cinema, fashion, restaurants, cafes, artificial intelligence, sports centres, and residential and commercial properties.

The company’s extensive investment portfolio encompasses ongoing and forthcoming projects across various regions and cities in the Kingdom, with a collective investment exceeding 15 billion Saudi riyals.