Banan Real Estate Sets Up SAR 44M Subsidiary for Investment

Banan Real Estate Company is creating a new subsidiary. The Saudi-listed firm's board approved the formation of a simplified joint-stock company on July 16, backed with total capital of SAR 44.08 million.

The new entity will operate under Banan's corporate umbrella, though the company did not specify the subsidiary's investment mandate or asset focus in its bourse filing. The approval follows Banan's existing real estate development and management activities in Saudi Arabia.

Banan last reported a net profit of SAR 16.3 million for the first quarter of 2026, up from SAR 12.1 million in the same period a year earlier. The subsidiary launch adds a new corporate shell to the group's structure.

The company's stock traded flat on the Saudi Exchange at SAR 17.20 on the announcement day.