Retal Urban Development Company has signed an agreement with the state-owned National Housing Company (NHC) to develop a residential project valued at 5.2 billion Saudi riyals ($1.4 billion) in Al-Fursan suburb (phase 3) in Riyadh.

The agreement aims to develop 4,839 residential units (villas/apartments) and to execute the project’s infrastructure works, the company said in a statement to the Saudi stock exchange on Tuesday.

The work scope covers the design, marketing, financing, construction, completion, and delivery of the residential units and infrastructure development on a land area covering one million square metres (sqm).

The contract duration is 48 months from the date of signing the agreement.

The project is expected to positively impact Retal’s results throughout the development period from 2026 to 2029, the statement said.

This month, the developer said net profit surged 48.3 percent year on year to SAR 65.70 million in the third quarter of 2025. Revenue rose 32.52 percent annually to SAR 676.40 million during the period.

Located northeast of Riyadh city, near King Khalid International Airport and Princess Noura University, Al Fursan is spread over an area of 35,607,544 sqm and will host 50,000 residential units as well as commercial, educational facilities, health centres and other amenities when complete.

(Editing by Anoop Menon) (anoop.menon@lseg.com)

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