Taybah Markets: Performance of Taybah Investment and Real Estate Development in

Taybah Investment and Real Estate Development Company, commonly known as "Taybah Markets", is one of the leading companies in the Saudi real estate sector. Established over a decade ago, the company quickly succeeded in building a strong market position through the development of quality projects in major cities, particularly Medina and Mecca. Taybah Markets focuses on investing in real estate and tourism sectors, managing a diverse portfolio that includes hotels, shopping complexes, and residential units. With its listing on the Saudi financial market (Tadawul) under its unique symbol, the company has become one of the major players subject to the oversight of the Capital Market Authority. Over the years, Taybah Markets has participated in major developmental projects and has played a role in supporting national transformation plans through investments in tourism infrastructure and hospitality services. The company is characterized by an expansion strategy and its exploitation of emerging opportunities in the market, aligning with the objectives of Vision 2030 to diversify the national economy.

Taybah Markets' activities span across real estate development, tourism investment, and service sectors. Its notable operations include: 1) Developing and managing hotels and resorts in strategic locations serving pilgrims and tourists, 2) Building and managing modern shopping complexes, 3) Developing residential units in major cities, 4) Managing long-term real estate assets, 5) Investing in hospitality and religious tourism projects. Additionally, the company contributes to infrastructure projects related to tourism and is keen on investing its undeveloped lands to achieve future returns. Taybah Markets also keeps pace with modern trends in the real estate sector, such as integrating smart solutions in property management and attracting partnerships with global contracting and hotel companies. These activities position the company as a pivotal player in supporting the national hospitality and tourism sector.

In recent years, Taybah Markets has seen a noticeable improvement in its financial performance. The company's share price in the first quarter of 2025 was approximately 33.70 SAR, with a market capitalization estimated at around 1.18 billion SAR (based on a hypothetical number of shares). The company recorded a price-to-earnings ratio between 12 and 15 times, which is considered average given the profit growth. The dividend yield ranges from 3% to 5% annually based on the share price, reflecting a conservative and balanced dividend distribution policy. In the fourth quarter of 2024, the company announced a net profit of approximately 27.9 million SAR, primarily driven by receiving compensation for lands within the expansion project of the Prophet's Mosque. This profit growth led to a significant increase in the annual growth rate, with the annual net profit growth exceeding 50% in some quarters. These figures demonstrate the company's ability to achieve stable and growing returns, especially with its ongoing expansion in real estate and tourism projects.

The real estate and tourism sector is one of the most prominent economic sectors in the Kingdom, supported by Vision 2030, which focuses on diversifying income sources and attracting tourism investments. The Saudi market is expanding in hospitality and tourism infrastructure projects, with increasing demand for hotels, resorts, and shopping complexes in holy cities and tourist attractions. At the same time, the sector faces challenges such as rising financing costs, fluctuations in interest rates, and increased real estate supply in some areas. However, government reforms - such as white land fees and housing ownership programs - support market stability and stimulate demand. Companies that adopt investment strategies based on sustainability and diversification stand out as more capable of facing challenges and achieving sustainable growth.

One of the key features of Taybah Markets is its focus on major investment projects, particularly in the hospitality and religious tourism sector. The company has developed and managed hotels and shopping complexes near the Prophet's Mosque in Medina, in addition to new hotel projects in Riyadh. The success of these projects relies on maximizing geographic location, high seasonal demand, and quality of services provided. The company also aims to expand its real estate portfolio by investing in undeveloped lands or selling them, especially with the introduction of white land fees. The company's results indicate that its investment in strategic projects with long-term returns enhances its ability to withstand market fluctuations and achieve revenue and profit growth.

Taybah Markets announced a net profit of 27.9 million SAR in the fourth quarter of 2024, primarily driven by receiving financial compensation for lands within the expansion project of the Prophet's Mosque. This development led to exceptional profit growth compared to previous periods. In terms of operating revenues, the company recorded an annual growth exceeding 20%, resulting from the expansion of its hotel and real estate projects. This positive performance indicates the company's resilience and ability to capitalize on available market opportunities and manage its assets efficiently. However, part of this growth is attributed to exceptional non-recurring factors, necessitating that observers read the financial results in their full context, focusing on sustainable operational performance.

Taybah Markets adheres to a balanced cash dividend distribution policy, with dividend yields ranging from 3% to 5% of the share price in recent years. The company relies on generating stable cash flows from its real estate and tourism projects, allowing it to distribute annual dividends to shareholders. The size of the distributions depends on the company's profitability, liquidity availability, and board recommendations. In 2023, for example, the board recommended a cash dividend distribution ranging from 5% to 8% of capital. This policy reflects the company's commitment to rewarding shareholders without affecting future expansion plans. Investors are always advised to follow the company's official announcements to know the details of distributions and the specific dates for dividend payments.

Taybah Markets faces strong competition from several major companies in the real estate and tourism development sector. Notable competitors include Dar Al Arkan Real Estate Development, Jabal Omar Development Company, Saudi Real Estate Development Company, and Ammar Medina Company. Additionally, real estate investment funds and some individual investors compete to develop similar projects. These companies are distinguished by their investment sizes, diverse projects, and ability to attract a wide range of investors. Competition is particularly concentrated in holy cities and high-attraction tourist areas, where each company seeks to capture a larger share of hospitality and commercial and residential real estate projects. The ability to finance projects, speed of execution, and partnerships with government and global entities are critical factors in determining each company's position within the market.

Taybah Markets has witnessed a series of important developments during the period 2024-2025, including: receiving land compensation within the expansion project of the Prophet's Mosque amounting to 27.9 million SAR, which directly reflected on the results of the fourth quarter of 2024. The company also announced that it owns approximately 60,000 square meters of land that will be subject to white land fees, prompting it to accelerate development or sale. On the project front, Taybah signed contracts to establish a new hotel in Riyadh, in partnership with local and international contractors. The board also recommended cash dividend distributions in line with strong financial performance. These news reflect the company's activity in exploiting investment opportunities and enhancing its financial position, alongside its commitment to urban expansion and developing its real estate portfolio.

Taybah Markets relies on an expansion strategy aimed at diversifying income sources and increasing returns from real estate assets. The company focuses on investing in hotel and tourism projects aimed at pilgrims and tourists, alongside developing commercial and residential complexes in strategic locations. It also works on investing in undeveloped lands or selling them according to regulatory changes (such as the imposition of white land fees). The company is keen on building partnerships with global contracting and hotel companies to enhance the quality of its projects. It closely monitors market trends and responds to changes by continuously updating its investment plans. This strategy aims to achieve sustainable growth and maximize value for shareholders in the long term.

Despite the significant opportunities in the Saudi real estate and tourism sector, this sector faces several challenges, such as rising financing costs, intense competition, fluctuations in property prices, and the necessity to comply with regulatory requirements, such as white land fees. Taybah Markets addresses these challenges by adopting conservative financial policies, diversifying income sources, and accelerating the development of its undeveloped lands. The company also relies on efficient project management, building strategic partnerships, and investing in smart real estate technologies to ensure operational excellence. These policies enable it to maintain the stability of its financial position despite periodic market fluctuations.

Taybah Markets actively contributes to achieving the goals of Vision 2030, particularly in developing domestic and religious tourism. Through its hotel and tourism projects in Medina, Mecca, and Riyadh, the company supports efforts to increase the capacity for pilgrims and tourists, providing diverse accommodation options for visitors. It also participates in developing real estate infrastructure in new cities, investing in projects that support economic diversification and create new jobs. Taybah Markets' commitment to applying sustainability and social responsibility standards reflects its focus on achieving a balance between financial returns and developmental impact, making it a strategic partner in realizing the Kingdom's vision.

To follow Taybah Markets' news and financial data, it is advisable to refer to official sources such as the Saudi Exchange website (saudiexchange.sa), where the share price, market value, and official announcements are continuously updated. The company's official website, along with specialized financial news sites such as Argaam and Mubasher, also provide analyses and reports on the company's performance and news about its new projects. The Capital Market Authority (CMA) website is a reference for disclosure reports and quarterly data. It is always recommended to rely on trusted sources to ensure the accuracy of information and to avoid rumors or unverified news when following the news of listed companies.