Al Majdiah Expands Westward with New Jeddah Sales Center

The company did not disclose the size of the investment or sales targets for the new center. The opening adds a physical touchpoint in a market where in-person sales remain the primary channel for real estate transactions. Al Majdiah's existing sales network includes offices in Riyadh and Dammam, with a smaller office in Khobar.

Al Majdiah reported revenue of SAR 187 million in its most recent fiscal year, up from SAR 162 million the year before. The Jeddah center alone is unlikely to drive a step change in those numbers. It expands the company's addressable market in a region where competitors like Jabal Omar and Emaar The Economic City already have a presence. The stock trades on the Saudi Exchange at a price-to-earnings multiple of around 15x, in line with the sector average. The opening of a single sales center is a small operational event, not a catalyst that would justify a re-rating on its own. What matters is whether the company can convert foot traffic into signed contracts over the next two to three quarters.

Al Majdiah has been gradually increasing its land bank in Jeddah. The company acquired a plot in the Al Shati District in 2024, according to its annual report. The new sales center sits on that land, which means the company is using the site for both sales and potential future development. That dual use improves the return on the land investment.

The Saudi real estate market faces headwinds from higher interest rates, which have raised mortgage costs for buyers. The government's Sakani program and subsidized loans continue to support demand for affordable housing. Al Majdiah's projects target the mid-income segment, which benefits from those subsidies.

The company plans to open additional sales centers in other cities, though it has not specified which ones. The Jeddah opening is the first step in that plan.