Retal sees SAR 6B revenue in coming quarters, SAR 600M exits in 2027: CEO

Ammar Al-Ghoul, CEO of Retal Urban Development Co., said the total value of the company's project portfolio amounts to nearly SAR 38 billion, comprising SAR 25 billion in direct owned development projects and SAR 13 billion in real estate funds it manages and invests in.

In an interview with Al Arabiya, Al-Ghoul explained that the direct development portfolio includes projects worth SAR 10 billion that have been sold, while the value of unsold projects stands at approximately SAR 15 billion.

He added that the company has recognized SAR 4 billion in revenue from sold projects, while the value of sold units still under construction stands at approximately SAR 6 billion. These units represent expected revenue over the next six fiscal quarters, supported by the company's control over the value chain and construction activities.

Retal manages and invests in 13 real estate funds with a total portfolio value of SAR 13 billion, while the company's direct investments in these funds amount to around SAR 600 million.

Al-Ghoul noted that construction costs have increased by nearly 1.9% year-to-date due to regional economic and geopolitical conditions and their impact on building material prices, weighing on profit margins.

The company targets delivering between 2,000 and 2,400 units in 2026. It has delivered approximately 1,500 units so far and expects to deliver an additional 500 units in Q4 2026, said the top official. He noted that delivery-related costs in Q3 2026 were less than 20% of their Q2 levels, with expenses beginning to return to normal levels.

Regarding debt, Al-Ghoul said the company's debt stands at approximately SAR 1.68 billion, with around 80% allocated to project financing and the remaining 20% used to support working capital.

He expects Retal to exit projects and real estate funds worth between SAR 400-600 million from Q1 2027 through year-end, confirming that a significant portion of the proceeds will be directed toward reducing debt.

The company’s net debt has increased by SAR 200 million year-to-date, driven by the financing of several new real estate funds announced by the company during 2026.

Regarding real estate demand, Al-Ghoul said the latest Saudi Central Bank (SAMA) data for September indicate that market demand remains strong. Mortgage contracts in September 2026 rose 21% year-on-year, while their total value remained stable at previous levels

This indicates continued demand growth, but with a shift in consumer behavior toward lower-priced units, a trend that favors developers capable of offering a diversified range of products catering to different buyer segments, he added.

According to Argaam data, Retal’s net profit declined to SAR 51.7 million in Q3 2026, compared with SAR 55.5 million in Q3 2025, due to higher cost of revenue resulting from changes in the sales mix and increased costs associated with delivering ongoing projects.