Arada enters Saudi Arabia with $3.8 billion Riyadh housing project
Key Facts
Arada has entered the Saudi market with an integrated residential community project in Riyadh valued at 14 billion dirhams, equivalent to $3.8 billion, according to a report published by The National on October 20, 2026. The project is located in Al Rimal, along the Saudi capital's northeastern growth corridor, and will serve as the starting point for the company's expansion in the kingdom. The development is planned on a 2.5 million square metre site, according to details reported by the newspaper. The plan includes 3,500 homes comprising villas and townhouses, alongside retail and service facilities within the residential community. Arada's entry into Riyadh forms part of a broader plan to develop housing and launch projects in other Saudi cities.
The Al Rimal project will be financed through an investment structure regulated by Saudi Arabia's Capital Market Authority, according to The National. Al Rajhi Capital will manage the investment structure linked to financing the planned residential community in the capital. The group's expansion in the kingdom is led by Arada Saudi Arabia, established in partnership with Saudi property investor Xtopia. In a separate investment management initiative, the group previously announced the launch of the Arada Capital platform with a proposed assets under management target. The company set that target at $5 billion, to be reached within 4 years of the fund's establishment, according to its announcement of the platform. The announcement places asset management among the group's businesses, alongside the residential developments through which it is expanding in Saudi Arabia.
The project announcement comes as Saudi Arabia's residential market recorded declines in transaction values and deal volumes in the second quarter of 2026. According to CBRE's real estate market review, the value of residential transactions across the kingdom fell 26.9% from the same quarter a year earlier. Those transactions totalled 37.67 billion riyals during the period, while the total number of residential deals declined 14.2% year on year. On homeownership, the Saudi Press Agency cited the Ministry of Municipalities and Housing as saying the rate reached 66.24% by the end of 2025. That compares with a target of 70% under Saudi Vision 2030, which includes increasing homeownership among citizens. Arada's project thus enters a market combining a government target to increase ownership with a year-on-year decline in transaction activity during the period covered by the review.
On the sector's regulatory framework, the Real Estate General Authority announced that the law governing property ownership by non-Saudis took effect on January 22, 2026. According to the authority, the law is linked to the goal of improving the quality of real estate projects by attracting international developers and leading companies to the Saudi market. The authority said in its announcement that the law aims at "improving the quality of real estate projects by attracting international developers and leading companies". The establishment of Arada Saudi Arabia in partnership with a Saudi property investor forms part of the group's expansion, led by the new company within the kingdom. This expansion links a local presence led by the partnership with a residential project in Riyadh, in a sector whose regulator has announced its aim to attract international development companies.
Arada is embarking on its Saudi expansion after increasing its home sales in the UAE during 2025, according to figures released by the company on its operations. It sold 5,140 homes in the UAE market during the year, compared with 2,171 residential units recorded in 2024. The company described the number of homes sold as more than double the previous year's level, in a comparison covering units sold within the UAE. Alongside growth in unit sales, Arada announced a 170% increase in group revenue during 2025 to 6.7 billion dirhams. The company's UAE results provide a backdrop to its expansion in the kingdom, where Arada Saudi Arabia leads the group's operations in partnership with Xtopia.
In the next phase, Arada plans to launch projects in Jeddah and Mecca alongside its announced Riyadh project, according to The National. Chief Executive Ahmed Alkhoshaibi said the company aims to build 100,000 homes in Saudi Arabia over the next 3 to 5 years. That target relates to the broader Saudi expansion plan, while the planned residential community in Al Rimal comprises 3,500 villas and townhouses. Arada Saudi Arabia is leading the group's expansion in the kingdom through the partnership established with Saudi property investor Xtopia. The scheduled implementation milestone for the Al Rimal project is the expected start of construction in mid-2027, according to the timetable announced by Alkhoshaibi.