The Saudi Real Estate Company ("Al-Aqaria") announced the lifting of the suspension on its owned land located in the Al-Ariadh neighborhood north of Riyadh, based on the property registration deed issued by the real estate registry.

The land area is 30,000 square meters and is located within the commercial strip between King Fahd and Al-Olaya roads, with a book value of 98,400,000 Saudi Riyals.

This land was previously mentioned in paragraph (5/A) of the external auditor's report regarding the condensed consolidated financial statements for the period ending March 31, 2026, which indicated that there were some plots of land owned by the company that were not available for use or development at that time, for various reasons related to the conditions of the areas where those lands are located, or for other reasons under study by the relevant committees.

The company is currently studying the best possible uses for the land, in line with its strategy and contributing to achieving added value for the company and its shareholders.

The company also confirmed that lifting the suspension does not have any direct financial impact at present, and it will disclose any material developments in due course, in accordance with the relevant regulations and laws.

Summary of Al-Aqaria News

Students from Al-Yamamah University discussed the implications of this decision, the investment options available to the company, and its potential impacts on the real estate market as follows:

Asset Liberation and Expanding Investment Options

Student "Rimas Al-Mashali" @Rimas Almashali opened the analysis by saying: "I see that the importance of the decision lies not in lifting the suspension itself, but in transforming an unutilized asset into a viable investment opportunity.

Although there is currently no direct financial impact, the company now has broader options for development, partnership, or even exiting if it achieves higher value for shareholders.

Moreover, the continuation of these regulatory measures may enhance land use efficiency and stimulate investment, but the real impact on the market will appear when projects begin to be implemented and the units offered increase significantly."

Development Challenges and Balancing Returns with Financing Costs

Student "Ghadah Al-Wallan" @Ghadah Alwallan commented: "In my opinion, lifting the suspension does not mean that the land has suddenly become more profitable; rather, it has restored to the company the ability to utilize it.

Here, the true value depends on the quality of the upcoming decision, as developing an asset worth 98.4 million Riyals may increase returns, but it may also require significant financing and a long time before its effects are seen.

Therefore, the important question is not whether the stock rises after the news, but whether the company can achieve a return from the land that exceeds the costs of development and financing? This is the factor that will determine whether the decision created actual value for shareholders or merely liberated a frozen asset."

Maximizing Economic Value and Stabilizing Real Estate Supply

Student @Shahad Al-Muhaysin continued the analysis by saying: "In my opinion, lifting the suspension does not currently achieve a direct financial impact, but it increases the economic value of the land by transforming it into a developable and investable asset, opening opportunities to maximize returns. Additionally, its commercial location makes it suitable for a mixed-use project that achieves higher value.

From a regulatory perspective, lifting suspensions along with amending white land fees will support increasing supply and limit monopolies, but the success of this depends on the speed of development.

In the medium term, real estate development, contracting, and financing companies may benefit, with the potential for gradual stabilization of land and rental prices if supply growth continues."

The Importance of Optimal Utilization and Gradual Market Impact

Student "Mohammad Al-Ghaihab" @Mohammad Alghaihab shared his opinion, saying: "In my opinion, lifting the suspension on the land is positive news for the company, as it now has the freedom to benefit from the land instead of it being idle, opening options such as developing a project, selling it, or entering into investment partnerships.

It is true that the company mentioned there is no direct financial impact currently, but in the medium term, it may reflect positively if the land is utilized correctly.

Regarding the market, if the state continues to lift suspensions and supply increases, this helps to balance the market and attract more investors, but its impact on land and rental prices will likely be gradual and take time, not immediate."

Accounting Dimensions and the Future of the Frozen Portfolio

Student "Rana Al-Shamrani" @Rana Alshamrani concluded the analysis by highlighting the accounting angle, saying: "I see that lifting the suspension on this land carries a dimension that goes beyond liberating the asset itself, as the plot was classified under an audit observation in the external auditor's report (paragraph 5/A), thus the most significant impact here is accounting and governance as much as it is operational, and is related to the possibility of these observations being reduced in the future.

The most notable aspect in this context is that the released land (98.4 million Riyals) represents only about 22% of the total frozen real estate portfolio (438 million Riyals), leaving about 339.6 million Riyals unresolved so far.

Therefore, the most important indicator to follow is not this release itself, but the pace of addressing the rest of the portfolio as evidence of the seriousness of the regulatory response."

Asset Liberation and Rebalancing the Market

In an analytical reading of the company's performance, financial and economic analyst "Hamad Al-Saeed" @Hamad Alsaeed stated: Lifting the suspension on Al-Aqaria land in Al-Ariadh (30,000 m², with a book value of 98.4 million Riyals) is an accounting event neutral with no immediate financial impact, but it carries substantial economic value. The land has transitioned from a non-productive asset that does not generate cash flows to a development opportunity in one of the busiest commercial strips between King Fahd and Al-Olaya roads. As it represents about 22% of the restricted lands held by the company, valued at 438 million Riyals, the continued pace of lifting the suspension may gradually enhance the quality of the balance sheet and the future liquidity flexibility of the company, while reserving any evaluative impact until the development plan and its financing structure become clear.

This event is part of an integrated system. The total area lifted from suspension north of Riyadh is 81.48 million m², under the direction of the Crown Prince, may God protect him, as part of a package aimed at restoring balance to the real estate market.

This coincided with the implementation of the executive regulation for white land fees, which imposes annual fees ranging from 2.5% to 10% of the land value according to the priority of development, along with the entry into force of the non-Saudis property ownership system on January 22, 2026, including Riyadh and Jeddah within specific scopes.

Thus, this package works on both sides of the equation to expand the supply available for development and increase the cost of holding raw land, transforming the land from a store of value into an asset that must be operated. This, in turn, will contribute to supporting the non-oil GDP of the Kingdom and help stabilize property prices.

In the future, we expect a rapid launch of projects from listed companies, extending the momentum to the contracting and real estate financing sectors, with a gradual moderation in land price inflation over the medium term (18–36 months) without sharp declines, provided that the size of the impact remains contingent on the speed of infrastructure delivery and the adoption of the urban code.

Disclaimer: (This material was prepared under the supervision of the editor of “Yamamah Insights” and with the assistance of artificial intelligence tools for financial education purposes, and does not constitute a recommendation to buy, sell, or hold any security, and it reflects the opinions of its authors and not the platform's opinion).