Saudi real estate developer Retal has secured a massive contract to build almost 5,000 housing units in Riyadh’s fast-growing Al-Fursan district, marking one of the company’s biggest project wins to date.
The agreement with state-owned National Housing Company places Retal at the center of one of the kingdom’s most ambitious urban development plans.
A Major Push in Riyadh’s Housing Expansion
The deal, valued at 5.2 billion Saudi riyals ($1.4 billion), sets Retal up to handle both construction and infrastructure for the third phase of Al-Fursan suburb. It covers exactly 4,839 residential units — a mix of villas and apartments — across a massive one-million-square-meter site.
It’s a hefty commitment.
And it’s expected to reshape a sizable corner of northeastern Riyadh.
Retal confirmed that the contract timeline is set at 48 months, giving the company four years to complete design, marketing, financing, construction, and final delivery.
One short sentence stands out here: the project begins immediately after signing.
What the Project Means for Retal’s Growth
Retal told the Saudi stock exchange the development will positively influence the company’s financial results from 2026 through 2029.
That’s a long window of incoming revenue.
The company is already having a strong year.
Retal reported a 48.3% jump in quarterly net profit, reaching SAR 65.70 million. Revenue surged too, hitting SAR 676.40 million — up more than 32%.
It’s a performance that investors tend to notice, especially in a property market fueled by rapid population growth and major government-led housing programs.
One sentence that sums it up: the demand is real, and so is the pressure to keep delivering.
Al-Fursan: A New Urban Cluster Taking Shape
Al-Fursan isn’t just another neighborhood. It’s one of the largest master-planned communities under the National Housing Company portfolio.
Spread over 35.6 million sqm, the area is expected to eventually host 50,000 residential units, plus:
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Commercial hubs
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Universities and schools
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Health centers
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Public services
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Recreational venues
It’s located near King Khalid International Airport and Princess Noura University. That makes it particularly attractive to young families and professionals, and you can almost feel the momentum building as each development phase unfolds.
A single-sentence paragraph: the suburb is fast on its way to becoming a small city of its own.
Why the Housing Drive Matters Now
Saudi Arabia’s housing market sits at the center of national transformation plans. Rising incomes, young demographics, and a push for higher homeownership rates continue to fuel demand.
Government support through NHC has been essential, and Retal’s contract is part of that wider push.
A lot of Saudis moving to Riyadh — and younger Saudis forming new households — means projects like Al-Fursan are anything but optional.
One economist recently put it simply: “Riyadh is growing faster than people expected.”
Project Scope and Financial Footprint
Retal’s responsibilities go far beyond building units.
This contract includes:
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Site preparation
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Roads and utility infrastructure
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Full architectural and engineering design
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Financing coordination
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Property marketing
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Construction and handover
Here’s a quick table summarizing the main project metrics:
| Project Component | Details |
|---|---|
| Total Contract Value | SAR 5.2 billion ($1.4 billion) |
| Total Units | 4,839 units (villas & apartments) |
| Land Area | 1 million sqm |
| Project Location | Al-Fursan Suburb, Riyadh |
| Developer | Retal Urban Development Co. |
| Contract Period | 48 months |
| Expected Impact | 2026–2029 financial results |
It’s one of the most comprehensive development mandates Retal has taken on in recent years.
Investor Sentiment and Market Outlook
Investors have been watching listed developers closely as Riyadh undergoes its biggest residential expansion in decades. Retal’s recent financial performance has helped boost sentiment, but this new contract gives the company a clearer revenue pipeline.
Some market watchers say the company is positioning itself as a key execution partner for government housing programs. Others suggest Retal is benefiting from a wave of confidence as Vision-based housing targets gain clarity.
One short reminder: the Saudi property market is still adjusting to rising construction costs and intense delivery timelines.
Yet the government’s commitment to increasing housing availability remains strong, and projects like Al-Fursan phase 3 underline that commitment.
A Multi-Year Build That Signals Bigger Things Ahead
Retal’s involvement in such a large-scale neighborhood signals something larger — the deepening role of private developers in reshaping Saudi cities.
The company will spend the next four years shaping a piece of Riyadh that thousands of families will eventually call home.
And that’s a big responsibility.
Developments of this scale bring jobs, supply chain activity, and local business growth. They also test a developer’s capacity to manage something sprawling, complex, and time-sensitive.
A tiny but telling line from the company’s stock-exchange disclosure said the impact of the project “extends throughout the development period.” Basically, it’s a multi-year anchor deal.
And for Riyadh, it’s another step in the city’s transformation into the Gulf’s biggest urban center — something officials have repeatedly pointed to over the last two years.
