Retal goes regional with SAR 3.1 bn Omani development

Retal enters Oman with a SAR 3.1 bn project: Retal Urban Development will develop a SAR 3.1 bn residential community in Oman’s Sultan Haitham City under an agreement inked with Oman’s Housing and Urban Planning Ministry, according to a Tadawul disclosure. The development will be Retal’s first in the Sultanate, and comes as part of a wider regional expansion plan.

The details: The project covers zones 3, 15, and 17 of Sultan Haitham City across 1.3 mn sqm. Retal will serve as lead developer for the community, which will feature more than 2k villas and apartments alongside commercial and mixed-use facilities. It will develop the project under an off-plan sales model over an estimated nine years, with financial impact expected from 2027.

The expansion comes as Retal navigates squeezed financials. Despite a 1.8% y-o-y rise in revenue to SAR 577.4 mn in 1Q 2026 from real estate funds and accelerated project completions, net income fell 12.9% y-o-y to SAR 59.3 mn, according to a separate filing. A dip in operating income weighed on the bottom line, along with lower contributions from equity-accounted investment.

Why it matters: The Oman project gives Retal a foothold in a flagship Omani “smart city” gigaproject, positioning it in a market that may be less cost-pressured than Saudi Arabia. The nine-year development effectively acts as a relief valve amid tightening margins. More favorable land-concession terms and financing conditions in Oman could support healthier economics compared to the highly competitive, high-cost Riyadh market.

Retal is still busy back home: The developer is reportedly moving to take full control of Adjan Real Estate in a cashless all-share acquisition that values the target at SAR 1.86 bn. Late last year, it launched an SAR 1.9 bn real estate fund with Sab Invest to build a mixed-use project in Riyadh, and was awarded an SAR 5.2 bn housing development contract by The National Housing Company.