The Makkah Construction and Development Company has announced a substantial increase in profits for the first half of 2024, reporting earnings of 256 million riyals. This marks a 36.9% rise compared to the same period last year.
Key Factors Driving Profit Growth
Several factors contributed to this impressive financial performance:
- Increase in Room Revenues: The Makkah Hotel and Towers Company, a subsidiary of Makkah Construction and Development, experienced a notable increase in room rents. This growth was mainly driven by higher average room prices, reflecting the strong demand for accommodation in the region.
- Mall Revenues: Revenue from the mall operations also saw a significant boost. The strategic location and the influx of visitors contributed to higher foot traffic and sales.
- Hajj Services and Revenues: The company achieved additional profits from providing Hajj services. With the resumption of full-scale Hajj activities post-pandemic, the demand for services increased, resulting in higher revenues.
- Islamic Deposits: Revenues from Islamic deposits further bolstered the company’s financial results. These deposits, managed in compliance with Shariah principles, contributed to the overall profit growth.
The effective financial performance of Makkah Construction and Development Company underscores the continued recovery and growth of the hospitality and services sector in Makkah. With the easing of travel restrictions and the resumption of religious activities, the company is well-positioned to maintain its upward trajectory.
The positive outlook is supported by ongoing investments in infrastructure and services, to enhance the experience for visitors and pilgrims. The company’s strategic focus on maximizing room revenues and expanding its service offerings is expected to sustain growth in the coming quarters.
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