MASAR
Umm Al Qura for Development and Construction Co.
As of: May 28, 2026
Company Profile
Umm Al Qura for Development and Construction Company is a Saudi Joint Stock Company engaged in real estate activities including purchasing, selling, and dividing lands and real estate, off-plan sales, and leasing of owned or leased non-residential properties. It is also active in the construction of residential and non-residential buildings (such as schools, hospitals, and hotels), roads, streets, sidewalks, bridges, and tunnels. The Group's operations are primarily conducted within the Makkah region in Saudi Arabia, specifically focusing on the Masar Destination Project.
The Story
A high-leverage master developer of the Masar Destination in Makkah, transitioning to public markets with massive capital requirements and highly concentrated land-sale revenues.
Source: Q1 2026 (2026-05-07)
Performance & Distributions
Market Pricing Multiples
Growth Story
Carving a grand boulevard through Makkah requires immense upfront capital, as reflected in MASAR's massive five-year average reinvestment rate of 361.11%. This aggressive reinvestment, paired with a historical five-year average return on invested capital of 2.86%, yields a sustainable growth rate of 10.32%. Revenue has expanded significantly from 988.14 million SAR in FY 2023 to 1.82 billion SAR in FY 2024, peaking at 2.90 billion SAR in FY 2025, before settling at a TTM level of 2.48 billion SAR. This growth trajectory is highly lumpy, dictated by the timing of large-scale land plot sales rather than steady recurring streams.
Profitability Dynamics
On a transactional level, MASAR commands premium margins, boasting a TTM operating margin of 40.87% and a TTM profit margin of 35.01%, supported by TTM EBIT of 1.01 billion SAR. However, the broader profitability story reveals a historical mismatch between returns and the cost of funding. The company's five-year average ROIC of 2.86% falls short of its WACC of 6.34%, resulting in a negative value gap of -3.49%. This indicates that while individual land sales are highly profitable, the massive capital base tied up in non-earning assets under development has historically dragged down overall capital efficiency.
Risk & Capital Structure
Risk Factors
MASAR's capital structure resembles a mountain of mortgaged stone, carrying 7.30 billion SAR in total debt against a cash balance of only 106.13 million SAR, with loans heavily secured by the project's real estate title deeds. Beyond leverage, the company faces extreme operational concentration, with a single customer accounting for 95% of land sales revenue in the period ended March 31, 2026. Furthermore, the company is bound by massive capital commitments of 4.39 billion SAR for capital work in progress, exposing it to significant execution, liquidity, and regional geopolitical risks.
Governance Disclosures
We track 12 key governance and oversight matters for this company in our database.
Related-Party Land Sale to Wijhat Al-Bayt Real Estate Company
The Group has a closing balance of SR 210,962,201 as of March 31, 2026, arising from the sale of land to Wijhat Al-Bayt Real Estate Company, which shares a common board member with the Company.
Non-recurring IPO Bonuses for Key Management
Key management personnel received SR 42.69 million in salaries and allowances in 2025, which included non-recurring exceptional bonuses related to the successful IPO and listing.
Research Report
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