Riyadh, Saudi Arabia — Makkah Construction and Development Co. reported a 14.8% year-on-year rise in net profit for the first half of 2025, reaching SAR 294 million, up from SAR 256 million in the same period last year. Strong Hajj-season income offset the impact of Ramadan shifting into Q1.
Hajj Season Supports Revenue While Hotel Earnings Ease
Total revenue rose 16.4% to SAR 624 million in H1 2025, driven by higher income from mall rentals, stronger hotel performance, and robust religious tourism. Gross profit increased 7.9% to SAR 313 million. Operating profit grew 2.7% to SAR 264 million.
In Q2 2025, revenue reached SAR 388 million, up 10.9% from SAR 350 million a year earlier. However, quarterly net profit rose only 0.7% to SAR 144 million, held back by weaker hotel income as the final 10 days of Ramadan occurred in Q1 this year.
Compared to Q1 2025, revenue surged 64.4%, while net profit declined 4% to SAR 150 million. Contribution from an associate helped soften the seasonal drop.
Total comprehensive income for H1 fell 19.2% to SAR 316 million, mainly due to non-operational items. Shareholders’ equity declined 3.9% year-on-year to SAR 4.07 billion. Nonetheless, earnings per share improved to SAR 1.47 from SAR 1.28.
The company also restated previous gross profit figures to reflect a reclassification of certain expenses.
Makkah Construction reaffirmed its strategy of focusing on hospitality, retail, and real estate, while adapting operations to religious tourism cycles.
What This Means for Investors
- Operational resilience: Hajj-related income helped offset Ramadan-related seasonality.
- Stable real estate: Mall and lease revenues continued to support topline growth.
- Strong earnings quality: EPS gains and steady operating profit signal solid financial footing.
- Strategic clarity: Focus on core assets supports long-term seasonal and commercial positioning.
THE SAUDI STANDARD’S VIEW: Makkah Construction H1 2025 Profit Reflects Resilient Seasonal Strategy
Makkah Construction and Development Co.’s SAR 294 million profit in H1 2025, up nearly 15%, highlights the firm’s ability to navigate the shifting Islamic calendar while capitalizing on Saudi Arabia’s growing religious tourism base.
The results show strong Hajj season revenue and a healthy rebound in commercial leasing, which balanced softer hotel income in Q2. A 64% sequential revenue jump confirms the seasonal dynamism tied to pilgrimage traffic.
The restatement of prior gross profit figures marks a positive step toward accounting transparency. Despite a drop in total comprehensive income, the firm’s focus on high-yield hospitality and retail assets continues to deliver consistent operating returns.
As Vision 2030 targets 30 million pilgrims annually, Makkah Construction H1 2025 profit illustrates the long-term value of faith-driven development. The company remains a key player in Saudi Arabia’s strategy to transform religious tourism into a sustainable growth engine.
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