Al-Hokair Group Trading: Everything You Need to Know About the Stock in the

Abdul Mohsen Al-Hokair Group for Tourism and Development, commonly known as "Al-Hokair Group," is a Saudi joint-stock company listed on the financial market (Tadawul) under the symbol 1820. Established in 1990, the company focuses its core activities in the tourism, hotels, family entertainment, and retail sectors. The group has evolved to become one of the largest players in the hospitality and entertainment sector in the Kingdom, with extensive investments that include operating hotels and resorts, managing family shopping centers, running global fashion and electronics retail outlets, and developing entertainment projects such as amusement parks and recreational gardens. Al-Hokair Group follows a strategy of diversifying income sources by combining operational revenues (from rents, sales, and entertainment services) with income from restaurants and hotels, providing it with financial flexibility in the face of seasonal and economic fluctuations. This diversity reflects in the stability of the company's returns over recent years, making it a model to emulate in the Saudi hospitality and entertainment sector.

Al-Hokair Group's shares were listed on the Saudi financial market (Tadawul) on June 26, 2014, within the hotels and tourism sector under the symbol 1820. This listing marked a qualitative addition to the sector, increasing the number of companies listed in it to four at that time, enhancing the diversity of investment options in the Saudi market. The importance of Al-Hokair Group lies in supporting the goals of Vision 2030 aimed at diversifying the national economy by enhancing the tourism and entertainment sectors and creating new job opportunities. The listing has contributed to increasing the company's transparency, as it now publishes periodic financial reports and adheres to disclosure and governance standards, enhancing investor confidence and stimulating local and foreign investment flows into the hospitality and entertainment sector.

Al-Hokair Group's business model relies on horizontal expansion in the tourism, entertainment, and retail sectors, while ensuring a balance between operational revenues and income from real estate and commercial investments. The group manages a wide network of hotels and resorts targeting various customer segments, from local families to international visitors. It also operates integrated family shopping centers that include stores for the most famous global brands and retail outlets for fashion, electronics, and cosmetics. In the entertainment sector, the company invests in developing amusement parks and recreational gardens, continually updating its offerings to attract families and youth. The group's activities extend to the restaurant and café sector through partnerships with global and local brands. This operational diversity embodies the company's ability to withstand seasonal demand fluctuations and achieve relatively stable revenues, providing a solid base for future growth amid economic and social transformations in the Kingdom.

Al-Hokair Group Trading witnessed significant revenue growth during 2024 and 2025, supported by the recovery of domestic tourism and increased consumer spending. According to the latest financial reports, the company achieved record revenues in the first half of 2024, bolstered by the opening of new branches and increased occupancy rates in its entertainment and hotel facilities. The stock price at the end of 2025 was approximately 60 SAR, with a market capitalization of about 1.8 billion SAR, while the price-to-earnings (P/E) ratio ranged between 10-15 times, amid relative stability in operating profits. The company announced a cash dividend of 0.5 SAR per share for the fiscal year 2024, following periods of reinvestment in expansions. These results reflect an improvement in financial performance and the ability to achieve good profit margins, despite global economic pressures and cost challenges.

Al-Hokair Group's activities fall within the tourism, hotels, entertainment, and retail sectors, which are fundamental pillars of Saudi Vision 2030. These sectors are witnessing accelerated growth supported by major government initiatives such as the Red Sea projects, NEOM, and national event seasons. Growth is concentrated in increased domestic and inbound tourism and rising household spending on entertainment and vacations. Al-Hokair Group benefits from this momentum by expanding its service network and innovating new entertainment offerings. Conversely, the company faces challenges such as changing consumer tastes, intense competition, and operating costs. Success in this sector requires continuous investment in innovation, efficient cost management, and the ability to respond quickly to economic and social changes.

Al-Hokair Group faces strong competition from local and international companies in the hotels, entertainment, and retail sectors. In the hospitality sector, it competes with companies such as Crowne Plaza and InterContinental Hotels (IHG) targeting tourist and pilgrimage segments. In the family entertainment sector, it competes with Al-Hokair Holding Group (owned by the Al-Hokair family), alongside large mall management companies and modern shopping platforms. In the retail sector, competitors include Abdullah Al-Othaim Holding and Dhahran Exhibitions, which offer diverse alternatives in fashion and electronics. Al-Hokair Group enhances its competitive edge through an extensive branch network, strategic partnerships, and keeping up with the latest global trends in entertainment and retail.

Al-Hokair Group has continued to implement ambitious expansion plans during 2024 and 2025, despite economic challenges. Key developments include the opening of new entertainment and commercial complexes in major Saudi cities and expansion into Gulf markets through new restaurants and commercial branches. The company has formed strategic partnerships with local and international firms to launch innovative entertainment and dining projects and has entered negotiations to acquire new hotel assets. Organizationally, it has relocated its headquarters to a strategic location in Riyadh to enhance operational efficiency. Additionally, it has invested in developing its workforce in digital marketing and global retail. These developments reflect the company's strategy to enhance its presence and diversify its income sources.

Al-Hokair Group has recognized the importance of digital transformation in improving operational efficiency and enhancing customer experience. The company has launched digital transformation initiatives in its facilities, such as electronic booking applications for hotels and restaurants and digital loyalty programs for visitors to entertainment centers. It has also invested in advanced cost and inventory management systems, helping to reduce operational expenses and increase profitability. In 2025, the company recorded an increase in net profits supported by cost control and the adoption of innovative technological solutions. The management believes that investing in digital transformation is key to competing in a rapidly changing market and provides opportunities to enhance revenues and improve operational efficiency.

Al-Hokair Group follows a balanced dividend distribution policy between supporting operational expansions and incentivizing long-term shareholders. After years of reinvesting profits in expansion, the company returned to distributing cash dividends of 0.5 SAR per share in 2024, increasing the stock's attractiveness to investors seeking regular income. The distribution policy relies on achieving stable operating profits and maintaining good liquidity, considering future growth plans. Distributions play a role in enhancing investor confidence and improving the stock's valuation in the market, especially amid improving financial results. However, the company emphasizes that the distribution decision is always subject to the board's discretion based on financial and operational conditions.

Saudi Vision 2030 serves as a strategic framework to support and develop the tourism, entertainment, and hospitality sectors, which fall within Al-Hokair Group's areas of work. The vision includes launching massive projects such as the Red Sea, Qiddiya, and NEOM, in addition to national event seasons that stimulate local and international tourism spending. Al-Hokair Group benefits from these initiatives by expanding its services and developing new projects that meet the needs of different visitor segments. The vision also provides opportunities for partnerships with government and private entities in developing integrated entertainment facilities. This context supports the company's future growth but also imposes challenges related to innovation and sustainability in providing competitive offerings.

Like other companies in the hospitality and entertainment sector, Al-Hokair Group faces several operational and economic risks. Among the most prominent of these risks are fluctuations in the local and global economy, which may affect consumer and tourism spending. Intense competition also poses a challenge that requires continuous innovation and the development of new services. The company addresses these risks by diversifying income sources, improving operational efficiency, and maintaining a good cash ratio to face emergencies. It also monitors regulatory changes and strives to comply with governance and financial disclosure standards. Management emphasizes the importance of strategic planning and risk management as essential elements to ensure sustainable growth and enhance the company's position in the market.

The performance of Al-Hokair Group's stock (symbol 1820) on the Tadawul Saudi market can be monitored through electronic trading platforms, financial applications, or the official website of the Saudi financial market. These platforms provide real-time information about the stock price, trading volume, market capitalization, and announced distributions. Quarterly and annual financial reports published by the company on its official website or through Tadawul can also be accessed. When evaluating the stock, investors are advised to study key financial indicators such as the price-to-earnings (P/E) ratio, dividend yield, and revenue growth. It is important to consider changes in the sector, operational performance, and the company's future plans, while consulting licensed financial advisors.

Al-Hokair Group enjoys good growth prospects in light of the economic and social transformations in the Kingdom and the government's adoption of tourism and entertainment activation programs. National initiatives and event seasons open the door for the company's expansion and innovation of new offerings. However, the company faces challenges related to maintaining its market share amid increasing competition and changing consumer tastes. Success in the next phase requires continuous investment in expansions, digital innovation, and operational cost control. Strengthening strategic partnerships and developing human resources also contribute to supporting sustainable growth. Analyses indicate that the group is capable of benefiting from the sector's momentum if it continues to adopt flexible financial and operational policies.