Dar Al Arkan Raises US$400 Million Through Sukuk Sale
A comparison with other big real estate developers in the region appears to support the case. Dubai’s flagship developer, Emaar Properties has a $500 million, 8.5 percent sukuk maturing in 2016 which is rated B1 by Moody’s, one notch below the Dar sukuk.
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You can find more details by going to one of the sections listed on this page such as historical data, charts, technical analysis and others. Thomson Reuters research team update company information from primary sources (company annual reports, press releases, company websites, corporate briefings, official statements/interviews) and reliable secondary sources (stock markets, reliable third party publications). Home loans currently exist in Saudi Arabia, but many are salary-based with payments taken out of the home buyer’s salary when it enters his bank account, said Khan Zahid, chief economist at Riyad Capital. If passed, a mortgage law could increase activity greatly while stimulating the real estate market, he said.
The recovery in confidence in Dar Al Arkan, the country’s biggest private property developer, has been dramatic. When the 2015 sukuk was issued http://hapalua.honolulumarathon.jp/2019/%e6%9c%aa%e5%88%86%e9%a1%9e/what-is-brexit-what-will-happen-now-britain-has/ in 2010, investor demand was sluggish and the company had to settle for raising $450 million instead of its target of $500-700 million.
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Three analysts surveyed by Reuters have a median target price of 5.00 riyals for the stock; two rate it a “hold” and one a “sell”. Real estate property investment, development and management; through its subsidiaries, provides Islamic and conventional direct investments in the real estate sector; offers real estate brokerage services; engineering, contracting and procurement for residential projects. Some analysts argue there is an additional two to three price points of upside in Dar Al Arkan’s 2015 bond, which is rated BB- by Standard & Poor’s, and that the sukuk could rally further after the repayment of the 2012 bond, which will reduce leverage and ease the company’s debt maturity schedule. Strong Saudi economic growth last year, estimated by the finance ministry at 6.8 percent, and increased government spending to ease social tensions after the Arab Spring uprisings elsewhere in the region have also helped Dar Al Arkan.
“We have a good opportunity now to grow outside Saudi because we have the cash, we have the capability,” Shelash said, adding that Dar Al Arkan had a cash position of almost SAR3bn ($800m). The company is listed on the Saudi Stock Exchange – Tadawul. Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
Dar Al Arkan shares rose 4.167% yesterday to close at SAR 8.75, continuing its rebound from the low of SAR 7.4 on 2nd March, its lowest price in more than three years. Property sales in Saudi Arabia were sluggish last year despite high construction activity in infrastructure throughout http://grupogercca.com/boris-johnson-s-plans-for-irish-border-checks/ the Kingdom. Dar Al Arkan saw sales improve in the fourth quarter to raise net profits by 14.1 for the period against the third quarter. The company has been active in the bond market in the last 12 months in order to secure financing for projects and pay off previous debts.
Riyadh is expected to release its 2018 state budget next week. But the stock climbed far beyond what many analysts considered fair value, to about 51 times trailing earnings, according to Thomson Reuters data.
- “The Saudi government’s initiatives to build homes and support infrastructure have further pushed positive sentiment in the name,” said Thomas Christie, fixed income trader at Rasmala Investment Bank in Dubai.
- Saudi Arabian construction giant Dar Al Arkan Real Estate Development Co, led by Yousef Abdullah Al Shalash, raised US$400 million through sukuk issue after a strong demand for sukuk helped to reduce the cost at which it was borrowed, according to Arabian Business.
- In addition, we provide you with news for the listed company in the financial market.
- Real estate property investment, development and management; through its subsidiaries, provides Islamic and conventional direct investments in the real estate sector; offers real estate brokerage services; engineering, contracting and procurement for residential projects.
- But the yield on the 2012 sukuk has returned to its 2011 low; a similar move by the 2015 sukuk would bring it to 10 percent.
DUBAI, Feb 29 (Reuters) – A flood of money into the bonds of Saudi Arabian property developer Dar Al Arkan is due to renewed confidence in the company’s ability to repay its debt, but also to a general scramble to buy Saudi assets as the economy booms. Dar Al Arkan Real Estate Development Co (DAAR) engages in the development, sale, and lease of real estate projects in the Kingdom of Saudi Arabia. It is headquartered in Riyadh, Saudi Arabia. The $400 million sukuk was issued on May 27 2014, and was the seventh issue by Dar Al Arkan Real Estate Development Company. Shares in Dar Al Arkan have been a focus of the Saudi stock market in recent weeks, soaring to a close of SAR13.99 in heavy trade on Sunday from around SAR7.50 in mid-November, when international index compiler MSCI said it was adding the stock to its Saudi Arabia Index.
In Dubai, the index rose 0.6 percent as real estate firm Emaar Development , which hit a record closing low of 5.34 dirhams last week, rebounded 2.6 percent to 5.49 dirhams. Its shares were sold in last month’s initial public offer at 6.03 dirhams.
You may also find various basic and advanced charts that could be helpful in making decisions about the trend of the stock (rise or fall) and in predicting the movement of the equity. Saudi Arabian construction giant Dar Al Arkan Real Estate Development Co, led by Yousef Abdullah Al Shalash, raised US$400 million through sukuk issue after a strong demand for sukuk helped to reduce the cost at which it was borrowed, according to Arabian Business. Mr el Maghraby initiated coverage on Dar Al Arkan with a strong buy rating and price target of 11.37 Saudi riyals a share.
The biggest property firm in Saudi Arabia by market value said after-tax gains fell to SAR 1.455 billion, down 31.4% from SAR 2.12 billion the previous year, after revenues fell to SAR 4.141 billion from http://pyungchonhansol.si-soft.or.kr/2019/10/02/augur-demonstriruet-rost-na-fone-zapuska-rynka-2/ SAR 5.46 billion and the cost of sales increased 19.8%. In June last year, Dar Al Arkan said it was in talks with the Saudi government to provide housing units under the kingdom’s economic reform plan.
Dar Alarkan Real Estate Development (
Dar Al Arkan Real Estate Development Company was established in 1994, under the Commercial Registration No.1010160195. The company is launching its international business with an 800 million dirham ($218 million) development in downtown Dubai. It will start construction in early http://www.student-international.uk/1-steem/ 2018 of a 34-storey waterfront skyscraper with luxury apartments. “We have a good opportunity now to grow outside Saudi because we have the cash, we have the capability,” Shelash said, adding that Dar Al Arkan had a cash position of almost 3 billion riyals ($800 million).
Dar Al Arkan is the developer of several residential projects around Riyadh and Madinah, including Shams Riyadh, a five million square metre space Al-Dareiyah province at Riyadh that will see the construction of 3,189 villas in different sizes. Dar Al Arkan has numerous projects in the Saudi capital, Riyadh.
Trading on margin increases the financial risks. Investing.com – Saudi Arabia equities were lower at the close on Sunday, as losses in the Financial Services, Agriculture & Food and Cement sectors propelled shares lower.