Jabal Omar Development Company Announces Its Strategy to Capitalize on the Inclusion of Jabal Omar within the Geographic Areas Where Non-Saudis May Own Real Estate

Element List	Explanation
Announcement Detail	With reference to the Council of Ministers' approval, at its meeting held on Tuesday, 23 June 2026, of the Implementing Regulations of the Non-Saudi Real Estate Ownership Law and the designation of the geographic areas where non-Saudis may own real estate, which include the Jabal Omar Project. This decision is expected to have a positive impact by broadening the base of potential investors and property owners from among Muslims around the world, while supporting increased demand for real estate assets and property products located within the designated areas covered by the new regulations. Accordingly, Jabal Omar Development Company intends to capitalize on these positive developments through the following strategic initiatives: 1. Offering 400 existing hotel residential units for sale during the current year as the first phase, with the sale proceeds to be primarily directed toward reducing the Company's outstanding debt. 2. Developing the seventh and final phase of the Jabal Omar Project, adopting a development strategy focused on increasing the number of hotel residential units designated for sale and leveraging off-plan sales products to reduce financing requirements. This strategic direction is expected to enhance the Company's profitability and cash flows by reducing financing costs and minimizing the capital investments required for the development of the aforementioned phase. It is worth noting that Jabal Omar Development Company currently owns an established real estate portfolio comprising more than 6,500 hotel rooms and suites, which is expected to increase to 7,700 hotel rooms and suites upon completion of the remaining components of Phase Four, which is nearing completion. This will further strengthen the Company's competitive position in benefiting from these regulatory developments. The Company confirms that all of the above-mentioned initiatives remain subject to obtaining the relevant regulatory approvals.

Element List

Explanation

Announcement Detail

With reference to the Council of Ministers' approval, at its meeting held on Tuesday, 23 June 2026, of the Implementing Regulations of the Non-Saudi Real Estate Ownership Law and the designation of the geographic areas where non-Saudis may own real estate, which include the Jabal Omar Project.

This decision is expected to have a positive impact by broadening the base of potential investors and property owners from among Muslims around the world, while supporting increased demand for real estate assets and property products located within the designated areas covered by the new regulations.

Accordingly, Jabal Omar Development Company intends to capitalize on these positive developments through the following strategic initiatives:

1. Offering 400 existing hotel residential units for sale during the current year as the first phase, with the sale proceeds to be primarily directed toward reducing the Company's outstanding debt.

2. Developing the seventh and final phase of the Jabal Omar Project, adopting a development strategy focused on increasing the number of hotel residential units designated for sale and leveraging off-plan sales products to reduce financing requirements.

This strategic direction is expected to enhance the Company's profitability and cash flows by reducing financing costs and minimizing the capital investments required for the development of the aforementioned phase.

It is worth noting that Jabal Omar Development Company currently owns an established real estate portfolio comprising more than 6,500 hotel rooms and suites, which is expected to increase to 7,700 hotel rooms and suites upon completion of the remaining components of Phase Four, which is nearing completion. This will further strengthen the Company's competitive position in benefiting from these regulatory developments.

The Company confirms that all of the above-mentioned initiatives remain subject to obtaining the relevant regulatory approvals.