"Aybak" Achieves Record Sales in 2025 Reaching $1.3 Billion with 17% Growth from 2024

SadaNews - Preliminary financial data published by Dr. Samih Al-Attout for the Arab Palestinian Investment Company "Aybak" at the end of 2025, showed significant growth in sales, as sales in 2025 exceeded $1.3 billion, reflecting a growth of 17% compared to 2024. The company managed to maintain a profit margin of 13.5% in 2024-2025.

Service revenues fell by 15%, reaching approximately $8.5 million in 2025, down from the revenues achieved in 2024, which amounted to nearly $10 million.

One of the main problems facing the Arab Palestinian Investment Company is the rising financing costs, which exceeded $33 million in 2025, marking a growth rate of 10% compared to 2024. The debts owed by the Palestinian Authority are considered one of the key reasons for the increased financing costs, with the total debt amounting to nearly $150 million.

This leads to a significant increase in financing costs, which constituted 62% of operating profit in 2025, while they accounted for 60% of operating profit in 2024. The debts of the Palestinian Authority have led to a sharp decline in net cash flows from operating activities, with net cash flows from operating activities totaling -$43 million.

Administrative and general expenses rose by 17.5%, amounting to $67 million in 2025, compared to nearly $57 million in 2024. The company incurred a net loss of $3.5 million due to the implementation of International Accounting Standard No. 29 concerning investments in countries with hyperinflation, a challenge faced by the Arab Palestinian Investment Company due to its investments in Turkey.

In conclusion, the issue of financing costs and the size of debts are among the most significant problems facing the company, which has sought to expand and grow over the past two decades, leading to a ballooning of debt levels, accompanied by rising financing costs amid global interest rate hikes. However, it is noteworthy that the company does not face issues regarding short-term debts, as the current ratio in 2025 stood at approximately 1.4 times, up from 1.11 times, indicating an improvement in short-term liquidity.

It is also important to note the diversification of borrowing in different currencies, which reduces financing costs, particularly for the new bond issuance, which amounted to $120 million. The company’s net profit decreased by 6%, reaching approximately $7.6 million in 2025, down from more than $8.1 million in 2024. Any improvement in the Palestinian treasury would be a significant strength for the Arab Palestinian Investment Company "Aybak", which would lead to a substantial decrease in financing costs and an increase in profitability.