Building and Construction Company secures SAR 268 million contract for Remal Business Court project

Building and Construction Company, an 80% subsidiary of Retal Urban Development Company, signed a SAR 268 million contract with Remal Park Fund to execute design and building services for the Remal Business Court project in Al Khobar.

Retal Urban Development Company has announced that its 80%-owned subsidiary, Building and Construction Company, has officially signed a construction contract valued at SAR 268 million with associate company Remal Park Fund. Under the terms of the agreement, the contractor will deliver full design and building services works for the Remal Business Court project situated in Al Khobar city, Saudi Arabia. Executed without any preferential terms or benefits, the contract spans a duration of 12 months from its effective date.

Building and Construction Company is an 80%-owned subsidiary of Saudi Arabia's Retal Urban Development Company, specializing in broad contracting, engineering, and execution services for commercial and residential developments. Remal Park Fund operates as an associate investment vehicle focused on real estate fund management and urban commercial ventures within the Kingdom.

This major contract execution marks a crucial operational step in advancing the physical layout of the Remal Business Court project, establishing a structured corporate environment in Al Khobar. By securing design-and-build execution through a specialized internal subsidiary, the fund streamlines project delivery schedules and ensures high-quality engineering standards throughout the 12-month development cycle. The agreement strengthens the overall commercial infrastructure of Eastern Province, reinforcing local development capacity.

The announcement underscores ongoing momentum within Saudi Arabia’s commercial real estate sector, driven by demand for modern office spaces and integrated business hubs in key economic zones. Strategic partnerships between real estate funds and specialized construction subsidiaries continue to serve as a pivotal framework for mitigating operational risks and maintaining execution quality in major urban engineering projects.

For Retal Urban Development Company, the contract provides immediate revenue visibility and expands the group's order backlog. The financial impact is projected to reflect positively on the company's financial results starting from the commencement of project execution throughout the years 2026 and 2027. Furthermore, the transaction highlights strong intra-group synergies, demonstrating how real estate developers can leverage captive construction capabilities to drive asset growth and deliver long-term value to investors.