Jabal Omar delivered strong financial growth during the second quarter of 2026. Jabal Omar benefited from higher hotel occupancy, stronger retail activity, and increased domestic tourism. In addition, the busy Hajj season supported demand across its hospitality portfolio.
The Saudi developer reported revenue of SAR715 million during the second quarter. This marked a 43 percent increase compared with the same period last year. The company attributed the improvement to stronger hotel performance and the opening of the Rotana Hotel earlier this year. These factors boosted visitor numbers and increased overall revenue.
The company also returned to profitability during the quarter. Net income reached SAR158 million after recording a net loss in the same period of 2025. Lower financing costs and reduced impairment provisions supported the improved financial results. Consequently, the company strengthened its overall financial position.
Revenue also increased during the first half of 2026. Total revenue reached SAR1.5 billion, representing a 16 percent increase from the previous year. Hotel operations remained the main growth driver with a 17 percent rise in revenue. Meanwhile, shopping malls generated a 6 percent increase, reflecting stronger commercial activity.
Hotel performance continued improving throughout the reporting period. The average daily room rate increased by 6 percent. In addition, revenue per available room rose by 7 percent compared with last year. Higher demand during the Hajj season played an important role in supporting these results. Domestic travelers also contributed to stronger occupancy across the company’s hotels.
Retail operations also produced positive results during the first half of the year. Revenue from commercial centers increased by 6 percent as occupied gross leasing space expanded by 10 percent. More tenants and higher customer traffic supported stronger rental income across shopping destinations.
Despite higher revenue, first-half net profit declined to SAR275 million. However, the comparison reflected exceptional gains recorded during the previous year. Earlier financial results included one-time income from land sales, which did not recur in 2026. Therefore, overall operating performance remained stronger than the headline profit figures suggested.
Management also responded to changing tourism trends across the region. Ongoing regional tensions affected international and regional tourist arrivals. As a result, the company shifted its strategy toward attracting domestic visitors. This approach helped maintain demand across hotels and retail properties during the quarter.
The company expects recent regulatory changes to create additional growth opportunities. Saudi Arabia now allows eligible non-Saudi residents to purchase property through approved government procedures. Management believes this decision could expand the investor base within the Jabal Omar development in Makkah and support future demand.
The developer also announced plans to offer selected hotel units for sale. This initiative aims to accelerate debt reduction while improving financial flexibility. Management believes stronger cash flow and asset sales will support long-term business growth.
Debt levels also improved during the reporting period. Total debt declined by 2 percent from the end of 2025 to SAR9.1 billion by the end of June. Furthermore, the company refinanced a SAR2 billion loan during the second quarter. This move reduced near-term repayment obligations and strengthened the company’s financial outlook.
Investors welcomed the latest financial update. The company’s shares closed 2.5 percent higher after the results announcement. The stock has also gained 11 percent since the beginning of 2026, reflecting growing investor confidence.
Jabal Omar continues strengthening its hospitality and retail businesses while improving its financial position. The company expects Hajj, Umrah, and domestic tourism to remain key drivers of future growth. As new investment opportunities emerge and visitor numbers increase, Jabal Omar aims to build on its positive momentum throughout the remainder of the year.
