Following plans to reduce costs during the last 12 months, Omani developer NRED has doubled its authorised capital in a bid to activate its remaining land bank in the sultanate.
The Muscat Securities Market-listed real estate developer held an extraordinary general meeting on 20 March in Oman’s capital city, where the board of directors approved a plan to increase its capital from $13m (OMR5m) to $26m (OMR10m).
This decision came after NRED met to discuss the company’s 2018 financial results, which saw the Omani developer swing back to profitability, following a $210.6m (OMR81m) loss in 2017.
The company said its return to the black with net profit of $4.4m (OMR1.7m) came thanks to changes in land value and favourable Muscat Central development costs. It also adopted a restructuring plan to minimise costs and maximise shareholder value, which contributed to an upturn in its financial performance.
The developer has not disclosed any detailed plans for future real estate developments in the sultanate, stating only that it was seriously looking at plans for future construction.