Shares of Morocco's Douzi Group surged on Monday, November 9, reaching a 52-week high of nearly 40 dirhams. The increase comes after the company announced it had obtained approval from Saudi Arabia's National Housing Company (NHC) to partner in residential projects in the kingdom. This development marks Douzi as the first Moroccan and West African real estate company to receive such accreditation.
The approval allows Douzi to explore development opportunities in NHC's urban destinations in Riyadh, particularly in the "Khazam" and "Al Forsan" projects. These are two of the largest integrated urban development projects overseen by the Saudi company. The news has sparked a positive reaction among investors, with trading volumes increasing significantly in recent days.
Douzi Group, owned by the Sfairioui family, is a major player in Morocco's real estate sector, having delivered around 300,000 housing units. In the first half of this year, the company reported revenues of approximately 1.4 billion dirhams and profits of 336 million dirhams, representing a 20% year-on-year growth.
The company is currently active in several African markets, including Côte d'Ivoire, Senegal, Guinea, and Gabon. Outside Morocco, Douzi has around 23,000 units under development, valued at nearly 20 billion dirhams. The company's expansion into the Saudi market is seen as a strategic move, as the kingdom's real estate market experiences increased activity under its Vision 2030 plan.
The Saudi housing market has been a focus area for growth, with the government aiming to increase homeownership among its citizens. Douzi's entry into this market is expected to contribute to the sector's development, leveraging its expertise in delivering large-scale housing projects. The company's stock performance reflects investor confidence in its growth prospects.
As a major developer in Morocco and now in Saudi Arabia, Douzi is well-positioned to capitalize on opportunities in the region. The company's experience in managing large-scale projects and its track record of delivery are seen as key strengths. The approval from NHC is a significant milestone in Douzi's expansion strategy.
The surge in Douzi's stock price underscores the market's positive response to the company's strategic move into the Saudi market. With its strong presence in Morocco and growing international footprint, Douzi is poised for continued growth in the real estate sector. The company's progress will be closely watched by investors and industry analysts in the coming months.
Key points
- Douzi Group obtained approval from Saudi Arabia's National Housing Company to partner in residential projects.
- The company's stock reached a 52-week high following the announcement.
- Douzi is the first Moroccan and West African real estate company to receive such accreditation from Saudi authorities.
