United Real Estate Company Achieves 23.5% Increase in Net Profit Recording KD 4.2 million in 2023

Mar 26 , 2024

Kuwait City by URC | Press Release

United Real Estate Company K.S.C.P (URC), the real estate arm of KIPCO Group and a leading real estate developer and investor in Kuwait and the MENA region, announced its financial results for the year ended 31 December 2023.

The company achieved an increase in net profit attributable to the equity holders of the parent company, reaching KD 4.2 million in 2023 compared to KD 3.4 million in 2022, representing a 23.5% increase. Gross profit also increased to KD 27.2 million compared to KD 22.9 million in 2022, an increase of 18%.

URC stated that the financial data showed a significant growth in operational performance during 2023. Operating profits recorded an increase of KD 25.3 million in 2023 compared to a loss of KD 17.3 million in 2022, representing an increase of 245.9%.

Revenue from the core business segments of Rental and Hospitality increased by 35.7% in 2023 compared to 2022. The rental segment saw revenue growth of 45%, and the Hospitality segment saw revenue growth of 20%.

Commenting on the financial results, Mr. Mazen Issam Hawwa, URC Vice Chairman and Group Chief Executive Officer, said: "2023 has been a positive year as we succeeded in improving our financial position and made tangible progress in our strategic priorities. The company was able to achieve many accomplishments as part of its business plan, including the opening of the Waldorf Astoria Cairo Hotel and the completion of the sale of Medius in Egypt."

Mr. Mazen added, "The company's good financial results demonstrate the adaptability of its business model to challenges and confirm the management's commitment to creating added value for shareholders over the long term and achieving the best returns. These results also provide a solid foundation for achieving stronger performance in the future."

URC believes that its ongoing efforts are key to its success, enhancing its resilience and enabling it to capitalize on available opportunities in the markets. These efforts contribute to solidifying its position and achieving further sustainable growth in the long term.

About URC

United Real Estate Company. K.S.C.P (URC) is one of the leading real estate developers in Kuwait and the MENA region, with consolidated assets of Approx. KD 669 million (US$ 2.2 Billion) as of 30 September 2023. Head quartered in Kuwait, URC was founded in 1973 and was listed on the Kuwait Stock Exchange in 1984.

URC primarily operates through a number of operating subsidiaries and investment arms across the MENA region. URC's core business is real estate development and operations and enjoys a diversified portfolio of assets that include retail complexes, hotels, residential properties, and high-rise office buildings.

URC’s operations extend to construction and contracting services, facility management, and project management through its several subsidiaries. URC's portfolio of assets is geographically spread throughout the MENA region and includes Marina World, Marina Hotel, and KIPCO Tower in Kuwait, Salalah Gardens Mall & Residences in Oman, Abdali Mall in Jordan, Raouche View 1090 in Lebanon, Hilton Cairo Heliopolis & Waldorf Astoria Hotels, and Aswar Residences in Egypt, and Assoufid development including a golf resort, five-star hotel, and premium residences in Morocco.

URC is the real estate arm of its majority shareholder, Kuwait Projects Company – Holding (KIPCO Group), a holding company that focuses on investments in the Middle East and North Africa. It’s strategy of acquiring, building, scaling and selling companies in the MENA region has worked successfully for over 30 years. KIPCO’s main business sectors are financial services, media, real estate, and industry. KIPCO’s financial service interests include holdings in commercial banks, insurance companies, asset management, and investment banking.

Contact Info

Salem Al Khulaqi

Communications Manager – Sales & Marketing
United Real Estate Company

T (+965) 2295 3671

F (+965) 2244 1003