Jabal Omar swings to 261.6 million riyal loss, shares drop 7.33%

Summary

• Jabal Omar posted a 261.61 million riyal third-quarter loss against a 197.85 million riyal profit a year earlier.
• Revenue rose 14.242% to 370.03 million riyals, but a 510 million riyal exceptional gain from last year did not repeat.
• Nine-month profit collapsed 98.773% to 13.51 million riyals, leaving the Mecca developer's shares down 7.33%.

The latest

Mecca developer Jabal Omar swung to a net loss of 261.61 million riyals in the third quarter of 2026, reversing a 197.85 million riyal profit a year earlier and a 158.13 million riyal profit in the second quarter, according to its filing on the Saudi Exchange. Revenue still grew to 370.03 million riyals. The stock fell 7.33% as the announcement was published.

Details

• The headline number: The company reported a net loss attributable to shareholders of 261.61 million riyals for the third quarter of 2026, according to its Saudi Exchange filing. That compares with a 197.85 million riyal profit in the same quarter of 2025 and a 158.13 million riyal profit in the preceding quarter, a swing the company put at 232%.
• Revenue split: Third-quarter revenue rose 14.242% year-on-year to 370.03 million riyals from 323.9 million riyals. Against the second quarter, however, the top line fell 48.258% from 715.15 million riyals, according to the filing.
• Operations turned negative: Jabal Omar recorded an operating loss of 97.14 million riyals for the quarter, against an operating profit of 312.57 million riyals a year earlier — a reversal that came despite the higher revenue line.
• The missing gain: The company attributed the profit decline mainly to a 510 million riyal drop in exceptional gains, noting the comparable quarter of 2025 included proceeds from a land sale. No equivalent one-off item was recorded this quarter.
• Financing costs: Finance costs recognised in the profit or loss statement rose by 27 million riyals after the company stopped capitalising borrowing costs tied to part of its Phase Four assets. Capitalised interest sits on the balance sheet; once halted, it flows straight into reported earnings.
• Fair value losses: The company also cited higher losses from changes in the fair value of financial instruments as a contributor to the quarterly result. The filing did not break out the size of that item.
• Nine-month picture: For the first nine months of 2026, net profit fell 98.773% to 13.51 million riyals from 1,101.73 million riyals a year earlier. Revenue over the period rose 15.953% to 1,824.34 million riyals and gross profit rose 15.535% to 609.14 million riyals.
• Balance sheet: Shareholders' equity stood at 15,876.16 million riyals, up 8.953% from the comparable period, according to the company's disclosure to the Saudi Exchange.
• What is working: Jabal Omar credited the revenue increase to continued improvement in hotel and shopping centre performance, along with the opening of the Rotana hotel at the start of the year. The company did not give occupancy or segment-level figures.
• Market reaction: Shares in Jabal Omar fell 7.33% as the results were published, according to the Saudi Exchange. The filing carried no management forecast or guidance for the remainder of the year.

Background

Jabal Omar Development is one of the largest developers in Mecca, building hotels and retail space near the Grand Mosque. Phase Four is among its multi-stage projects; borrowing costs tied to assets under construction can be capitalised until those assets are ready for use.

Between the lines

The operating business is growing: revenue up 14.242% and nine-month gross profit up 15.535%. The loss is driven by items below that line — the absent 510 million riyal land-sale gain, 27 million riyals of newly expensed interest and fair value losses. The capitalisation halt is the structural piece, since it permanently shifts Phase Four borrowing costs onto quarterly earnings rather than the balance sheet.

What's next

Watch the fourth-quarter and full-year filings for whether the higher finance charge persists once Phase Four assets are in service, and whether hotel and retail revenue can offset it without one-off asset sales.

Source: Saudi Exchange (Tadawul) — Jabal Omar Development Company filing