Middle East Property
Kuwaiti developer posts a KD 11.7 million second quarter profit and turns to selling land
By Staff Writer | 16 August 2026
National Real Estate Company reported a profit of KD 11.7 million for the three months to 30 June against a loss a year earlier, completed two disposals, and signed for a 243,474 square metre development in Egypt.
National Real Estate Company, the Kuwaiti developer, reported a net profit of KD 11.7 million for the second quarter of 2026 against a net loss of KD 66.5 million in the same quarter of 2025. Earnings per share came in at 5.9 fils against a loss per share of 33.4 fils. The company announced the figures on 15 August.
The company describes the quarter as the first full one after the provisions and write-offs it recognised earlier, and says the result is therefore a clearer reading of the underlying business. Over the half year it remained loss making, at KD 42.2 million with a loss per share of 21.2 fils, and it puts total assets at KD 468 million as at 30 June.
Operating revenue is small against the profit line. The company reported KD 0.84 million of revenue for the quarter and KD 1.7 million for the half year.
Three disposals and one commitment
The quarter's activity was asset recycling rather than trading. The company completed the transfer of its stake in a European holding company for EUR 74 million, about KD 26.5 million, recognising about KD 6.2 million in the income statement on a reclassification of reserves previously carried outside the income statement, with what it states was no effect on total equity.
In the United Arab Emirates it completed the sale of a 1,994 square metre plot on Al Reem Island in Abu Dhabi for AED 52 million, about KD 4.4 million, for a profit of roughly KD 1 million. It has also signed a memorandum of understanding for two further plots there totalling about 13,001 square metres at AED 400 million, about KD 33.5 million, which it expects to produce about KD 8.9 million of profit when it completes.
We have moved decisively to monetize non-core assets, most notably through the Al Reem Island transactions and the sale of our stake in Mediterranean Investments Holding, and we are redirecting that capital to reduce debt and financial risk, return capital to shareholders, and pursue opportunities with high return prospects.
Faisal Jamil Sultan Al-Essa, Vice Chairman and Chief Executive Officer of National Real Estate Company
Against those exits sits one commitment. An Egyptian subsidiary has entered a partnership to develop about 243,474 square metres in 6th of October City. The company puts development cost at KD 35.5 million, projected revenues at about KD 42 million and profit at the subsidiary level at about KD 6.4 million, of which its own share is about KD 5.1 million on its holding.
What the numbers do and do not tell a contractor
A memorandum of understanding is not a sale. The AED 400 million disposal that carries the larger part of the expected gain has not completed, and the company says so, so the KD 8.9 million attached to it is a forecast on a transaction that can still fall away. Anyone pricing work on the strength of an employer's published disposal programme should be reading which line has completed and which has not.
The Egyptian scheme is the only figure in the announcement that describes construction spending, and at KD 35.5 million of development cost against a 243,474 square metre site it is an early estimate rather than a tendered sum. No contractor, consultant or programme has been named, and the split between infrastructure and buildings has not been published.
The wider point for a supply chain is the direction of travel. A developer selling land in two jurisdictions to reduce debt is a developer whose near term work is likely to be phased against receipts rather than against a construction programme. That is a payment security question long before it is a procurement one, and the answer to it lives in the terms of engagement rather than in a results announcement.