Ammar Al-Ghoul, CFO of Retal Urban Development Co. (Retal)
“We believe that our performance is supported by a strong operating portfolio with a total value of around SAR 41 billion, including direct development projects and real estate funds, along with unrecognized revenues amounting to SAR 18.6 billion, which provides clear visibility for future topline streams and performance sustainability over the medium term,” said Al-Ghoul. 
He pointed out that Retal has relative protection against market fluctuations, as 82% of sales in ongoing projects are secured through binding contracts, making recorded revenues more linked to completion rates rather than only new market demand and rising interest rates.
According to the top official, revenues from REITs rose to SAR 47 million in Q1 2026, from SAR 17 million a year earlier, with expectations to recognize the remaining SAR 639 million in fund portfolio fees over a period ranging between 3 and 5 years.
He added that the fund portfolio continues to expand, starting with the award of the King Salman Park Fund valued at SAR 3.2 billion, while work is ongoing to complete the procedures of the Ajdan deal, as part of Retal’s strategy to strengthen its presence in major projects, diversify income sources, and create sustainable long-term value.
Additionally, the expected financial impact from the King Salman Park project lies in enhancing future revenues from development and performance fees within the expected revenues from the REITs portfolio, estimated at around SAR 844 million.
He explained that the factors affecting first-quarter results were temporary and seasonal in nature, noting that Q4 2025 was exceptional due to the support of the Cityscape exhibition, which witnessed a notable rise in sales, while Q1 2026 was affected by slower sales activity during Ramadan.
The real estate market indicators showed noticeable weakness across the board, with around 4,200 sales contracts recorded in March 2026, the lowest monthly level since October 2018. Average mortgage financing during the quarter reached about SAR 7.9 billion per month, down nearly 34% YoY, due to continued high interest rates and their impact on purchase decisions and transaction execution, said Al-Ghoul.
He confirmed that the impact on Retal remained limited thanks to the high pre-sale rate of existing projects, in addition to development partnerships with national entities such as ROSHN, as well as REITs financed by institutional rather than individual investors.
Regarding the financial results, Al-Ghoul explained that the 13% decline in net profit despite revenue growth and improvement in gross margin and operating profits was due to the increase in marketing expenses by 63.9% or SAR 4.1 million, as part of preparations to launch the “Ewan Rajan” and “Sedra 5” projects.
Al-Ghoul further said that general and administrative expenses rose by 15.2%, or SAR 4 million, due to higher professional service costs related to design and study work for new projects, while the contribution of associates and JVs declined by around SAR 10.2 million, which was the largest factor affecting net profit during the quarter.
These factors are temporary and linked to the preparation stage for launching new projects, he added, expecting them to positively reflect on sales in coming period.
He also pointed out that core operating performance continued to improve, with the gross margin rising to 24.8% and operating profit growing by 5.4%, reflecting the quality and profitability of core operations.
Meanwhile, development contract revenues reached SAR 568.6 million during Q1 2026, compared to SAR 556 million in the same period in the previous year. Revenues from real estate funds accounted for around 8% of Retal’s topline of SAR 577.4 million, reflecting the progress of the company’s strategy in diversifying income sources and improving earnings quality over the medium term, said the CFO.
According to Argaam data, Retal’s profit declined to SAR 59.3 million by the end of Q1 2026, down 13% compared to SAR 68.1 million in Q1 2025.
Ammar Al-Ghoul, CFO of Retal Urban Development Co. (Retal)
“We believe that our performance is supported by a strong operating portfolio with a total value of around SAR 41 billion, including direct development projects and real estate funds, along with unrecognized revenues amounting to SAR 18.6 billion, which provides clear visibility for future topline streams and performance sustainability over the medium term,” said Al-Ghoul.
He pointed out that Retal has relative protection against market fluctuations, as 82% of sales in ongoing projects are secured through binding contracts, making recorded revenues more linked to completion rates rather than only new market demand and rising interest rates.
According to the top official, revenues from REITs rose to SAR 47 million in Q1 2026, from SAR 17 million a year earlier, with expectations to recognize the remaining SAR 639 million in fund portfolio fees over a period ranging between 3 and 5 years.
He added that the fund portfolio continues to expand, starting with the award of the King Salman Park Fund valued at SAR 3.2 billion, while work is ongoing to complete the procedures of the Ajdan deal, as part of Retal’s strategy to strengthen its presence in major projects, diversify income sources, and create sustainable long-term value.
Additionally, the expected financial impact from the King Salman Park project lies in enhancing future revenues from development and performance fees within the expected revenues from the REITs portfolio, estimated at around SAR 844 million.
He explained that the factors affecting first-quarter results were temporary and seasonal in nature, noting that Q4 2025 was exceptional due to the support of the Cityscape exhibition, which witnessed a notable rise in sales, while Q1 2026 was affected by slower sales activity during Ramadan.
The real estate market indicators showed noticeable weakness across the board, with around 4,200 sales contracts recorded in March 2026, the lowest monthly level since October 2018. Average mortgage financing during the quarter reached about SAR 7.9 billion per month, down nearly 34% YoY, due to continued high interest rates and their impact on purchase decisions and transaction execution, said Al-Ghoul.
He confirmed that the impact on Retal remained limited thanks to the high pre-sale rate of existing projects, in addition to development partnerships with national entities such as ROSHN, as well as REITs financed by institutional rather than individual investors.
Regarding the financial results, Al-Ghoul explained that the 13% decline in net profit despite revenue growth and improvement in gross margin and operating profits was due to the increase in marketing expenses by 63.9% or SAR 4.1 million, as part of preparations to launch the “Ewan Rajan” and “Sedra 5” projects.
Al-Ghoul further said that general and administrative expenses rose by 15.2%, or SAR 4 million, due to higher professional service costs related to design and study work for new projects, while the contribution of associates and JVs declined by around SAR 10.2 million, which was the largest factor affecting net profit during the quarter.
These factors are temporary and linked to the preparation stage for launching new projects, he added, expecting them to positively reflect on sales in coming period.
He also pointed out that core operating performance continued to improve, with the gross margin rising to 24.8% and operating profit growing by 5.4%, reflecting the quality and profitability of core operations.
Meanwhile, development contract revenues reached SAR 568.6 million during Q1 2026, compared to SAR 556 million in the same period in the previous year. Revenues from real estate funds accounted for around 8% of Retal’s topline of SAR 577.4 million, reflecting the progress of the company’s strategy in diversifying income sources and improving earnings quality over the medium term, said the CFO.
According to Argaam data, Retal’s profit declined to SAR 59.3 million by the end of Q1 2026, down 13% compared to SAR 68.1 million in Q1 2025.
