Growing communities.
Enriching lives.

Scaling Delivery, Maximizing Value

2025 was a year of accelerated execution and portfolio maturity for Retal’s Development function. We focused on fewer, larger master-planned communities that integrate residential, mixed-use, hospitality, sports, retail, and lifestyle components, while expanding into high-rise and branded residences as a distinct premium growth pillar.

Portfolio Growth with Execution Excellence

Total project value rose by approximately 39% to SAR 42.6 billion, with projects advancing across multiple stages to maintain a visible, multi-year pipeline. The number of units under development also recorded a year-on-year growth of approximately 63%, reaching 16,041 residential units, reflecting the accelerating pace of expansion and deepening of the portfolio. Residential communities remained our core, while mixeduse and branded residential captured a growing share of new launches and awards, exemplified by Deera by Retal and Roya Al-Haram. Our footprint is anchored in the Central Region (65% of total units under development), Eastern Region (29%), and Western Region (6%), supported by five newly awarded projects worth about SAR +11.5 billion, including Deera by Retal – Fursan 3, Retal Heights, Roya Al-Haram, and Roshn Makkah – AlManar, which deepen our partnerships with NHC and ROSHN.

During the year, backlog units increased from 9,825 in December 2024 to 16,041 in December 2025, driven primarily by Deera (4,839 units), alongside contributions from Nesaj Lazurd (1,064 units) and ROSHN 4G (744 units), reflecting strong pipeline expansion and healthy replenishment of units.

Delivery as a Competitive Advantage

In 2025, a significant number of residential units reached full construction completion, demonstrating our ability to convert pipeline into finished inventory at scale. These completions sit within a broader pipeline of tens of thousands of units, reflecting operational depth, disciplined sequencing, and a mature integrated development model. Our delivery capability was further validated by the King Abdulaziz Quality Award, the Kingdom’s highest national recognition for institutional performance and innovation.

Designing Communities Around People

We treat design as a responsibility, shaping every community around daily resident experience— walkability, climate responsiveness, open spaces, and amenity integration. This human-first approach is evident in projects such as RBC Masar within Riyadh’s Sports Boulevard, aligning private development with green corridors, mobility networks, and wellness infrastructure under the Quality of Life Program. Looking ahead, we will maintain disciplined execution, focused backlog conversion, and selective growth across residential, mixed-use, and branded assets, building on the platform strength demonstrated in 2025.

Record Outcomes in a Year of Expansion

The year 2025 marks another defining milestone in Retal’s journey, delivering the strongest financial performance since inception. During the year, Retal achieved record revenues of SAR 2,437.8 million, representing an 18.1% YoY increase, driven by three key factors – increased unit sales in high-completion projects, a larger volume of projects reaching the sales phase, and enhanced revenue contribution from real estate funds and investment platforms. Development contract revenues remained the primary growth engine, reaching SAR 2,392.6 million, the highest level in the Company’s history.

The year also saw record profitability across key financial metrics. Gross profit rose to SAR 605.9 million, with a margin of 24.9%, while operating profit reached SAR 405.7 million, delivering an operating margin of 16.6%, reflecting margin expansion and disciplined cost management. Net profit before minority interest reached SAR 324.5 million, while net profit attributable to shareholders amounted to SAR 293.3 million, marking the highest net earnings recorded by Retal to date.

Beyond profitability, several financial indicators reached historic highs during the year. Total assets expanded to SAR 5.8 billion, while total equity surpassed SAR 1.03 billion, reflecting the continued scaling of Retal’s development platform. Net working capital also strengthened significantly to SAR 942 million, supporting the Company’s ability to fund ongoing project execution while maintaining financial flexibility.

A Resilient Revenue Model

These results were achieved in a market environment characterized by elevated interest rates and softer mortgage activity across parts of the residential sector. In this context, Retal’s operating model has continued to demonstrate resilience.

Development contract revenues remain the cornerstone of Retal’s revenue structure, accounting for approximately 98% of total revenues in 2025. The continued expansion of this segment reflects Retal’s ability to secure large-scale development opportunities and deepen partnerships with national housing platforms and institutional developers. This model provides stable revenue streams, reduces exposure to market absorption risk, and enables disciplined capital deployment across projects.

Complementing development activities, Retal continues to benefit from diversified revenue streams generated through real estate funds, joint ventures, and structured investment platforms. As of 2025, the Company operates across 12 active funds and partnerships, which are expected to generate approximately SAR 304 million in service-fee income over the next three to five years through development, marketing, and sales mandates. These structures enable Retal to participate in premium developments while maintaining a capital-efficient growth strategy and enhancing long-term earnings visibility.

Strengthening the Balance Sheet

Retal’s balance sheet expanded in line with the growth of its development portfolio. Total assets increased to SAR 5.8 billion in 2025, compared with SAR 4.2 billion in the previous year, primarily driven by higher development properties and ongoing project execution across the Kingdom.

Cash and cash equivalents stood at SAR 732 million, supporting liquidity while enabling the Company to continue investing in new development opportunities.

At the same time, Retal maintained a disciplined approach to capital management. Total debt declined to SAR 1.46 billion, reflecting decline amounting to SAR 276 million during the year, and the Company’s commitment to maintaining a balanced capital structure. Key financial indicators remained healthy, including a current ratio of 1.23 and a debt-to-equity ratio of 0.70, demonstrating the Company’s ability to support growth while preserving financial resilience.

Profitability metrics remained strong, with return on equity reaching 31.7% and return on assets at 5.9%, highlighting the efficiency of Retal’s capital allocation strategy.

Retal in 2026

Looking ahead to 2026, Retal is well-positioned to continue its growth trajectory by expanding its asset-light development model and deepening strategic partnerships with leading national developers and institutional development platforms. The Company will continue to prioritize efficient capital allocation by growing its development contract portfolio, while increasing the contribution of high-margin, fee-based income streams through real estate funds, joint ventures, and private partnerships.

Building on the foundations established in 2025, Retal aims to enhance the quality and sustainability of its earnings by expanding its indirect development portfolio and optimizing its project mix toward more capital-efficient opportunities. This approach is expected to support margin stability, improve return on equity, and strengthen cash flow generation across economic cycles.

While the operating environment may continue to experience volatility due to changes in interest rates and mortgage activity, Retal’s diversified revenue model, supported by a strong contracted backlog, provides a solid foundation for sustainable performance.

Supported by strong long-term fundamentals in the Kingdom’s real estate sector, and continued alignment with national housing program objectives, Retal remains confident in its ability to deliver sustainable growth, driven by its asset-light model and diversified income streams. This positions the Company to generate sustainable value for its shareholders while reinforcing its position as a leading development platform in the Kingdom.

Mr. Ammar AlGhoul

Chief Financial Officer

Strengthening Reliability and Consistency

In 2025, Retal advanced its commitment to operational excellence, strengthening the systems and practices that enable consistent performance. I am proud of the progress made in reinforcing discipline, accountability, and rigor across our operations. Building on this foundation, we sharpened focus on execution – aligning people, processes, and technology to deliver measurable improvements in productivity, delivery timelines, and workforce effectiveness.

People as the Core Execution Advantage

Our people remain the foundation of Retal’s operational strength. In 2025, we continued to invest in leadership readiness, succession planning, and capability development to ensure continuity and resilience. As much as 76% of critical positions – representing ~18 roles – are now covered by successors ready, or expected to be ready, within one to three years, of which around 56% are Saudi nationals.

Structured career pathways, leadership development programs, and recognition initiatives — including the Employee of the Quarter program — strengthened engagement and internal mobility. These efforts were reflected in Retal being recognized once again as a Best Place to Work®, including for Saudi nationals, marking the fourth time the Company has received this certification, alongside recognition through the King Abdulaziz Quality Award and the Championing National Talent distinction.

Digital Enablement and Process Integration

Digital enablement continued to mature as a practical driver of execution effectiveness. During the year, Retal delivered 89 system solutions and automation initiatives, with 38 operational processes fully automated, eliminating human error and reducing manual effort across core workflows.

End-to-end system integration strengthened execution visibility, linking demand planning, procurement, contracting, and delivery within unified platforms. Artificial intelligence was selectively applied to enhance forecasting, lead qualification, and workforce analytics, supporting more informed decision-making without replacing human judgment.

More than 50 redundant process steps were removed — saving approximately 1,500 employee working hours per month — while technical support productivity increased by 24%, with over 9,000 service tickets resolved.

Embedding Discipline through the PMO

One of the most impactful developments during the year was the establishment of the Project Management Office (PMO) to institutionalize disciplined project delivery and strengthen management oversight of strategic initiatives. The PMO enhanced portfolio-level visibility and performance monitoring, enabling more informed executive decision-making and stronger delivery control.

These improvements contributed to a measurable improvement in the on-time delivery of strategic initiatives. By clarifying accountabilities, standardizing governance practices, and reinforcing performance transparency, the PMO improved schedule predictability, optimized resource deployment, and embedded a stronger delivery-focused culture across the organization.

Supply Chain Performance and Delivery Enablement

Supply chain performance strengthened operational resilience and cost discipline. Total issued agreements reached SAR 3.15 billion, delivering average cost savings of 9.85% and a competitive awarding rate of 97.9%. Local content across procurement spend reached 93.1%, reflecting continued progress in supplier localization. These outcomes were supported by the Strategic Supplier Prequalification Program and full compliance with Local Content and Government Procurement Authority requirements.

Operational improvements were also linked to digital customer enablement. Automation reduced unit handover time by 17%, shortened collection cycles by 9%, and improved process quality by 7%, supported by the rollout of 12 automated digital services across delivery and handover touchpoints.

Driving the Next Phase

Looking ahead, our priority is to further institutionalize operational excellence across Retal’s platform. We will deepen execution discipline, expand leadership capability, and continue leveraging data, automation, and AI to strengthen planning precision and performance visibility. Supported by an integrated operating model and a strong execution culture, Retal is well positioned to deliver consistent outcomes and long-term operational value.

Eng. Yousif AlHamoudi

Chief Operations Officer

Building Trust through Delivery Credibility

‘2025 was not simply a year of growth — it was a year of proof.’

Markets rarely reward ambition alone; they reward disciplined execution. In 2025, Retal demonstrated that growth, delivery credibility, and customer confidence can scale together.

We entered the year with a clear mandate: move beyond the traditional boundaries of sales execution and build a trust-led, experience-enabled commercial model. What followed validated that thesis.

Commercial Performance: Scale with Discipline

Sales performance was anchored by the successful launch of 13 projects, delivering total sales of 923 units and reinforcing pipeline depth across key growth corridors. Flagship platforms such as Cityscape Global delivered strong reservations and unit sales while generating over 255 million brand impressions across investors, buyers, and ecosystem stakeholders.

Our sponsorship and hosting of the NeoCity Innovation Program further elevated Retal's positioning within the PropTech and ConTech ecosystem, expanding engagement with investors, developers, and future-focused partners. This was not marketing spend; it was strategic positioning ensuring that Retal's brand equity grows in parallel with its asset base.

Delivery credibility moved in lockstep with sales momentum. Across our portfolio, 753 units were handed over spanning five communities — Nesaj Al Fursan, Nesaj Al Ahsa, Nesaj Al Narjis, Ewan Sedra, and Roya Alnakheel — reinforcing customer confidence in execution timelines. In a market where trust is the ultimate differentiator, our delivery record is a commercial asset.

The Customer as the Centre of Gravity

A singular enabler of this performance was the consolidation of sales, marketing, and Customer Care under the Commercial Division. This structural decision was deliberate: the customer conversation must remain consistent and experience-led before, during, and long after the sale.

The integration strengthened conversion confidence, reinforced credibility at the point of sale, and embedded long-term relationship ownership within the commercial function. The resulting unified engagement model generated a pipeline of 32,553 leads, converting 4,457 into qualified opportunities — a qualification rate of 13.7%.

Of those opportunities, 923 units were sold at a close rate of 20.7%, delivering total sales value of SAR 1.978 billion. These are not volume metrics; they are proof of a commercially disciplined pipeline.

Customer care satisfaction at handover reached 92.3%. This is not a lagging indicator — it is proof that our commercial model delivers beyond the transaction. Every handover is, in effect, the beginning of a referral cycle. We do not underestimate its strategic value.

Capability as a Competitive Advantage

Capability development at Retal is not episodic — it is continuous. A new CX operating model now governs how customer feedback is captured, how service quality is monitored, and how issues are resolved across the organisation, bringing customer voice, relationship ownership, service integrity, and quality insights into a single disciplined framework.

This sustained focus translates directly into retention, referrals, and long-term brand equity — outcomes that cannot be manufactured through volume alone, but must be earned through consistency.

Digital Enablement: Scale Without Compromise

Digital enablement plays a critical role in scaling this engagement. Enhancements across our customer platforms have strengthened transparency, responsiveness, and service accessibility, allowing us to manage higher interaction volumes without compromising experience quality.

Technology in our commercial model acts as an amplifier, enabling our teams to remain responsive and informed across every stage of the ownership journey.

Looking Ahead: Execution at Every Stage

Going forward, we are focused on sustaining launch absorption, accelerating handovers across progressing communities, and deepening investor participation across our development pipeline.

The integration of sales, marketing, and Customer Care ensures that growth is supported by conversion discipline — not just demand generation. As we scale, we remain governed by the same rigour applied to delivery and sales targets: responsiveness, resolution quality, and relationship continuity at every stage.

Our ambition for 2026 is clear: to deepen the trust we have earned, strengthen delivery credibility, and ensure that every customer who chooses Retal does so with confidence — and remains confident long after handover.

Trust is not built through promises alone. It is built through consistent delivery — project after project, community after community.

Mr. Maan AlBadran

Chief Commercial Officer