Dar Al Arkan, the Saudi Arabian real estate company behind the Roberto Cavalli-designed Mirabilia Villas in Riyadh, has reported an 8% decline in net profit after zakat and tax for 2018.
The publically traded real estate company made $135m (SAR508.81) in net profit for the year, a minor decline over the $147.5m (SAR553.37m) posted in 2017.
In an update on Saudi Arabia’s stock market, Tadawul, the Riyadh-headquartered developer attributed the dip in net profit to “lower margins achieved on property sales”.
Dar Al Arkan created a real estate brokerage arm in April 2018 to pursue opportunities in Saudi Arabia’s real estate sector, but its statement to Tadawul did not mention which of the group's properties had been sold during the year.
However, while profits declined at Dar Al Arkan, its 2018 revenue increased by more than a third during the same period. The company generated $1.7bn (SAR6.4bn) in sales last year, marking 35% growth over 2017's corresponding figures of $1.2bn (SAR4.7bn).
Dar Al Arkan is currently working on Dubai’s I Love Florence Tower, the interiors for which have been designed by Italian fashion house Roberto Cavalli.
The developer is also building cinemas in Saudi Arabia under a partnership with the UAE's Majid Al Futtaim. Their 15-screen Vox multiplex in Riyadh's Al Qasr Mall is scheduled to open in Q1 2019.