Saudi-listed developer Retal Urban Development Company has signed a SAR1.2 billion ($319 million) contract for a housing development that will deliver close to 900 homes in the kingdom.

The new deal with Jubail & Yanbu Industrial Cities Services Company (Jabeen) includes infrastructure works, design and construction of 897 residential units in Jubail Industrial City, the developer said in a bourse filing on the Saudi Stock Exchange (Tadawul).

Spanning more than 1,000 square kilometres, Jubail is the region’s largest industrial hub located in the eastern province of Saudi Arabia. It features port facilities and industrial complexes.

The contract is for more than a three-year period (40 months), which will start on the date the site for the project is handed over to Retal Company.

“The project is expected to have a positive impact on the company’s results during the project development,” the developer said.

The company has recently bagged a SAR290 million contract from the National Housing Company to develop 366 residential units in Riyadh.

The developer’s net profit for the third quarter of the year plummeted 62% to SAR 33.4 million following a 98.9% decline in property sales. Revenues from development contracts, however, surged by 91.3% to SAR320 million.

(Writing by Cleofe Maceda; editing by Seban Scaria)