Corporate News Room


JODC Shareholders Approve Landmark Alinma Fund Debt to Equity Transaction, Set to Issue 225 Million New Shares in Return for Settling SAR 5.3 billion in Outstanding Debt Owed to the Fund

Makkah, KSA; 28 August 2022: Jabal Omar Development Company (“JODC” or the “Company”) (Tadawul: 4250), one of the largest real estate developers in Saudi Arabia and the master developer of the iconic mega mixed-used project in Makkah, Jabal Omar, received shareholder approval for issuing new ordinary shares in the JODC to the unitholders of the Alinma Makkah Real Estate Fund (the “Fund”) and in exchange will extinguish all debts owed by the Company to the and settle all rights and obligations related to the Fund.
As part of the landmark and strategically significant transaction, JODC will be reducing its liabilities by SAR 5.3 billion, which is primarily made up of rent payments and other obligations owed to the Fund, and in return, the Company will issue 225,134,162 new ordinary shares to the Fund’s unitholders. As part of the deal terms, the legal ownership of the assets in the Fund, which is made up of three hotels and two commercial centers in Phase 1 of Jabal Omar, will be transferred back to JODC.

Commenting on this significant milestone, Saeed Al Ghamdi, Chairman of JODC, said:
“We look forward to welcoming our new shareholders and want to reaffirm the Company’s determination to deliver sustainable value by executing on its comprehensive transformation strategy, enabling JODC to capture attractive opportunities in the Kingdom’s booming Hajj and Umrah and tourism sectors.”

On his part, Khaled Al Amoudi, CEO of JODC, said:
“This is the largest and most significant transaction within our comprehensive capital structure optimization plan. Today’s successful outcome will set us on a path towards a better, and more sustainable tomorrow. This transaction will see our liabilities drastically shrink, our balance sheet deleveraged, and our liquidity profile significantly improve. It will free up SAR 540 million in cash and allocate it to more productive, value-enhancing use. We have turned a critical corner and are on an accelerated journey towards our next phase of growth.”

The positive outcome of the Extraordinary General Meeting (EGM) held on 25 August 2022, comes at a crucial time for the Company, which reported a six-month revenue of SAR 391 million, nearing pre-pandemic levels. For over 18 months, the Company, which also reported improving operating profit in the six-month period, has been executing a companywide operating, organizational and financial transformation plan, to enhance its efficiencies, and reduce its costs and liabilities, making it a more agile, financially robust and resilient Company.

The transaction is subject to the satisfaction of all the conditions set out in the Transaction Agreement.

Other Press Releases

Jabal Omar Revenues grew by 189% to reach SAR 317 million compared to the first quarter of 2022

Hospitality revenues grew by 179% for the first quarter of 2023 to reach SAR 268 million, a record improvement compared to SAR 96 million for the same period in 2022, driven by the success of the company strategy to improve the performance of the hospitality portfolio, besides benefiting from government initiatives related to the Hajj […]

JODC’s H1 2022 Revenue Surges to Near Pre-Pandemic Levels on Recovery in Umrah Activity

Government’s exceptional management of the pandemic and easing of the restrictions on pilgrimage activities led to a significant increase in the number of pilgrims Revenue in H1 was SAR 391 million, more than tripling year on year Sustained improvement in gross profit driven by Company’s transformation strategy Company expects to bring in new sources of […]

JODC received the Ministry of Finance’s approval to restructure SAR 3 billion existing loan facility

Makkah, Saudi Arabia; 21 November 2021: Jabal Omar Development Company (“JODC” or the “Company”), one of the largest real estate development companies in the Kingdom of Saudi Arabia, announced today the receipt of the Ministry of Finance’s approval to restructure an existing SAR 3 billion Murabaha loan facility. This agreement will have several immediate and […]

Jabal Omar Development Company Secures Over Half a Billion Saudi Riyals from Land Plot Sale in Jabal Omar Project

Makkah, KSA; 30 September 2021: Jabal Omar Development Company (JODC) (Tadawul: 4250), one the largest real estate developers in Saudi Arabia, today announced it has sold a parcel of land within its project via a public auction for SAR 517 million. The proceeds from the strategic land sale will enable the Company to progress with […]
Open form