Retal Annual Report

At A Glance

A Year of Firsts

For over a decade, Retal has strived to elevate the standards of real estate development, building an unrivalled track record of delivering cutting-edge residential, commercial and mixed-use developments, while cementing its position as a leader in the real estate industry.

Discover our journey

_SAR

1.9 _bn

Contracted Sales in 2023

_{(vs. SAR 1.4 bn in 2022)}

_SAR

1.4 _bn

Revenues in 2023_‍

(▲ 24% y-o-y)
(Highest revenues since establishment)

_SAR

1.27 _bn

Revenues from Development Contracts in 2023

(▲ 83% y-o-y)
(Highest development revenues since inception)

_SAR

325 _mn

EBITDA in 2023

(▲ 11% y-o-y)

Project Under Development

Projects and Funds Awarded

Projects Completed

1350+

2023 Total Units Sold

Chairman's Statement

Unveiling New Growth Horizons

We successfully concluded the year with robust top-line growth of 24% year-on-year, propelled primarily by development contracts, a direct result of breaking ground on a number of new projects during the year. Our success is rooted in a forward-thinking approach that emphasizes sustainable urban planning, technological integration, and the creation of vibrant communities.

Mr. Abdullah Al-Fozan

Chairman of Retal

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CEO Review

Where Vision Meets Progress

As we bid farewell to 2023, it is my distinct honor to reflect on a year of unparalleled achievements for Retal. In the tapestry of this year’s successes, we take pride in our robust financial growth, operational advancements, and portfolio expansion. These accomplishments underscore our commitment to shaping the future of urban living in Saudi Arabia.

Eng. Abdullah AlBraikan

Chief Executive Officer

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2023 Highlights

Throughout 2023, we continued to showcase the resilience of our business model, recording sustained operational expansion. During the year, we successfully launched 14 new phases across our project portfolio, were awarded 6 new projects, and expanded our geographic footprint by breaking ground on our first project in the dynamic city of Jeddah.

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Al Ahsa

Retal signs a shareholders’ agreement with Saudi Arabia Railways Company (SAR) to create a new commercial and entertainment hub in the vibrant city of Al-Ahsa

Bloom Invest

Retal and Bloom Invest sign an agreement to develop commercial, touristic, and residential projects across Riyadh and the Kingdom’s Eastern Province

Nesaj Al Fursan

Retal and the National Housing Company (NHC) join forces to develop Nesaj Al Fursan, Riyadh’s largest suburb

Nesaj Al Sadayem

Retal and NHC sign a partnership to develop Nesaj Al Sadayem, Retal’s first entrance into the dynamic city of Jeddah

Jeddah

Retal acquires a piece of land in Jeddah, with a total value of SAR 144 million, with the aim of developing a new project consisting of luxurious residential villas

Nesaj Town - Fursan

Retal launches first phase of Nesaj Town – Fursan in Riyadh and completes the sale of all residential units

Nesaj Town - Fursan

Retal breaks ground on the development of Nesaj Town – Fursan, comprised of 759 residential units

Nesaj Town – Hassa

Retal begins the development of Nesaj Town – Hassa, with a total of 347 residential units

Rimal Park Fund

The Company establishes the Rimal Park Fund, with the objective to construct an integrated residential and commercial complex in the heart of Al Khobar, spanning 55 thousand square meters

Nesaj Al Sadayem

Retal launches its first-ever project in Jeddah, breaking ground on its Sadayem Suburb project. The project will consist of over 350 residential units and will cover an area of almost 100 thousand square meters

Ritz-Carlton Resort

Retal and Marriott International sign a landmark agreement for the construction of the Ritz-Carlton resort in Al Khobar

Ewan Tharwa - Al Khobar

Retal launches Ewan Tharwa in Al Khobar which, once complete, is set to house 386 villas

Nesaj Town - Safwa

Retal breaks ground on a new project, Nesaj Town – Safwa, developed in partnership with NHC

Jabeen

A groundbreaking agreement is signed between Retal and Jubail and Yanbu Industrial City Services Company (Jabeen) for the development of 897 residential units in the Jubail Industrial City, with a total value of SAR 1.2 billion

Ewan Sedra

Retal and ROSHN partner to develop Ewan Sedra 4, a 363-unit residential community in the Sedra neighbourhood of Riyadh.

Our Business Model

Our business thrives on dynamic and diversified growth, driven by strategic partnerships and ventures. Beyond standard development projects, recent collaborations, such as offtake contracts and real estate fund establishment, have been instrumental in our pursuit. Moreover, transitioning to off-plan project development not only positions us as market pioneers but also offers unique advantages, enabling us to offer high-quality homes with minimal investment, secure early sales, finance ongoing projects, and enhance financial agility.

View Our Model

Self Owned
Projects

Partnership
with NHC

Partnership
with ROSHN

Offtake
Agreements

JVs and Real
Estate Funds

Agreement Type

Development agreement

Land purchase agreements*

Development agreement

Partnership with real estate funds

Sales Method

Off-plan sales

Offtake

Off-plan sales (if available)

Scope of Work

The Company acts as the primary developer of a number of luxury developments with special features

Retal designs, develops, markets and sells residential units to Ministry of Housing beneficiaries

Retal designs, develops, markets and sells residential units to ROSHN’s homebuyers

As the primary developer, Retal designs, develops and delivers residential units to the offtaker

Retal designs, develops, markets and sells rsidential, administrative, or hospitality projects on behalf of the shareholders

Revenue Sources

Sales and delivery of residential units within a period of 24 months

Selling residential units and collecting the fees from an escrow account

Selling units and collecting the fees from an escrow account while settling the cost of the land with ROSHN according to pre-agreed installments

Monthly installments in line with the percentage completion

Development, marketing, and sales commission (if available) for residential, administrative, or hospitality projects

Land Ownership

Land owned by Retal

Land owned by NHC

Land owned by Retal*

Land owned by the offtaker

Land owned by the project-owner

_SAR

1.0 _bn

Total projects value

_SAR

3.4 _bn

Total projects value

_SAR

3.6 _bn

Total projects value

_SAR

1.2 _bn

Total projects value

_SAR

6.1 _bn

Total projects value

Prominent Projects

Prominent Partners

Geographic Footprint

We proudly boast a portfolio of 37 projects, comprising completed, ongoing and upcoming projects, all strategically distributed across Saudi Arabia's major cities.

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Integrated Value Chain

Our integrated and diversified business model forms the bedrock of our winning urban strategy and enables us to maintain control over the entire value chain

Retal

Lead Developer

Retal specializes in crafting world-class development concepts through well-defined policies, procedures, and processes. Our expertise is dedicated to creating distinguished communities and delivering pioneering urban communities to the highest standards of quality.

Saudi Tharwa

Infrastructure Development

Established in 2007, Saudi Tharwa is committed to pioneering advanced urban infrastructure spaces in the Kingdom. Revolutionizing cities with a forward-thinking approach, the company adheres to the highest quality standards and specifications, with an unwavering dedication to quality, which has garnered it international recognition.

Mimar Saudi Engineering Consultants

Engineering Consultancy

In the realm of design and engineering, Mimar Saudi upholds a standard of innovation and aesthetic excellence. Collaborating with seasoned design and engineering consultants, the company brings to fruition distinctive and visionary projects that seamlessly integrate form and function.

LDPI

Lighting Architect Consultancy

LDPI stands as one of the foremost firms of Lighting Architects globally. With a twodecade legacy, the company’s team predominantly comprises Architects and Interior Designers, with an emphasis on the seamless integration of light across projects of all sizes.

Nesaj Project Management Co.

Project Management

Nesaj’s approach to project management is characterized by meticulous planning, efficient execution, and a commitment to punctuality and fiscal prudence. Through robust methodologies, Nesaj ensures that each project follows a well-coordinated journey from conceptualization to realization.

BCC

Contracting

Established in 1996, Building Construction Company’s contracting prowess epitomizes a dedication to precision and quality, leveraging a network of skilled professional to ensure that its construction processes adhere to the highest industry standards.

Tadbeir

Facility Management

Tadbeir embraces cutting-edge practices to guarantee the seamless and efficient operation of its properties. This includes a spectrum of activities from regular maintenance to sustainability initiatives, underpinned by a proactive approach to addressing the evolving needs of the communities they serve.

Tadbeir

Property Management

Tadbeir’s property management services transcend routine tasks, embodying a holistic and personalized approach. From ensuring tenant satisfaction to maintaining the aesthetic appeal of its properties, the company remains committed to an elevated standard of care.

Our Strategy

Our Vision

To be Saudi Arabia’s real estate champion by delivering sustainable urban communities and destinations.

Navigate our roadmap

Financial Performance

Amidst the backdrop of global economic uncertainty, escalating interest rates, and oscillating demand, our journey has been defined by adept navigation, leveraging a robust business model and a spectrum of diversified revenue streams. Our growth stands as a testament to our steadfast commitment to sustainable growth and unwavering adaptability in the ever-evolving realm of real estate.

Our fiscal story

CFO Statement

Thriving Against Uncertainties

I take great pride in presenting yet another year of financial triumph for Retal. Amidst the backdrop of global economic uncertainty, escalating interest rates, and oscillating demand, our journey has been defined by adept navigation, leveraging a robust business model and strategic developments.

Ammar AlGhoul

Chief Financial Officer

Revenues

SAR mn

2023

1367

2022

1107

2021

1085

2020

587

2019

457

Gross Profit Margin

2023

27.7%

2022

27.4%

2021

22.6%

2020

21.2%

2019

17.0%

EBITDA Margin

2023

23.8%

2022

26.4%

2021

20.8%

2020

20.1%

2019

17.2%

Net Profit Margin

2023

14.8%

2022

22.2%

2021

17.8%

2020

16.8%

2019

13.1%

ROA

TTM

2023

6.7%

2022

11.5%

2021

12.9%

2020

10.7%

2019

10.0%

ROE

TTM

2023

27.3%

2022

37.7%

2021

35.6%

2020

22.8%

2019

25.1%

SAR 706 mn

Cash & Cash Equivalents

0.40

Earnings per share

1.21x

Current Ratio

Elevating Communities,
Empowering Lives (ESG)

At Retal, we believe in blending ambition with responsibility to create sustainable environments designed for long-term prosperity. Guided by our core values and in alignment with stakeholder priorities, we conscientiously assess our impact, concentrating on producing results that bring enduring benefits to our workforce, the environment, our partners and customers, and the communities that form the backdrop of our operations.

Environment

Protect our environmental assets by achieving continuous positive impact that is in line with international standards for preserving the environment

Social

Promote specialized community programs for achieving sustainable urban growth

Governance

Form a governance scheme with the highest standards of transparency to achieve sustainable practices

Discover our impact

Download Center

The Next Generation of Real Estate Developers

Sustained Operational Success

with over 1,350 units sold in 2023 at a value of SAR 1.9bn

Ushering in New Beginnings

with eight new projects awarded in 2023

Partner of Choice

boasting long lasting relationships with key government players

Vast Geographic Reach

with a backlog of 21 projects and 7,139 units in three major regions of Saudi Arabia

Preeminent Innovator

setting the benchmark as the Kingdom's first developer for off-plan sales

At A Glance

A Year of Firsts

SAR

1.9

bn

SAR

1.4

bn

SAR

1.27

bn

SAR

325

mn

Chairman's Statement

Unveiling New Growth Horizons

Mr. Abdullah Al-Fozan

CEO Review

Where Vision Meets Progress

Eng. Abdullah AlBraikan

2023 Highlights

Al Ahsa

Bloom Invest

Nesaj Al Fursan

Nesaj Al Sadayem

Jeddah

Nesaj Town - Fursan

Nesaj Town - Fursan

Nesaj Town – Hassa

Rimal Park Fund

Nesaj Al Sadayem

Ritz-Carlton Resort

Ewan Tharwa - Al Khobar

Nesaj Town - Safwa

Jabeen

Ewan Sedra

Our Business Model

SAR

1.0

bn

SAR

3.4

bn

SAR

3.6

bn

SAR

1.2

bn

SAR

6.1

bn

Geographic Footprint

Integrated Value Chain

Retal

Saudi Tharwa

Mimar Saudi Engineering Consultants

LDPI

Nesaj Project Management Co.

BCC

Tadbeir

Tadbeir

Our Strategy

Our Vision

Our Mission

Financial Performance

CFO Statement

Thriving Against Uncertainties

Ammar AlGhoul

The Next Generation
of Real Estate Developers

_SAR

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_SAR

_bn

_SAR

_bn

_SAR

_mn

_SAR

_bn

_SAR

_bn

_SAR

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_SAR

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Elevating Communities,
Empowering Lives (ESG)