RIYADH: Saudi developer Rafal Real Estate Development Co. is poised to launch a major project in northern Riyadh, unveiling 3,580 residential apartments aimed at transforming the city’s urban landscape, the company’s CEO revealed.
The Tilal Al-Khuzam development is a core part of Rafal’s collaboration with China’s Citigroup and is part of the Al-Khuzam master plan in partnership with the National Housing Co.
“We are announcing next week the launch of a major development under the Khuzam masterplan,” said Elias Abou Samra during an interview with Arab News at the Future Investment Initiative in Riyadh.
The project, situated near King Khalid International Airport and centered around Al-Khuzam Park, aims to introduce “urban living with a peaceful, quiet, green atmosphere” to Riyadh, creating a new model for the city’s residential environment.
Abou Samra explained that Tilal Al-Khuzam, along with other projects in Rafal’s pipeline, supports a broader strategy to stabilize revenue streams in a cyclical real estate market.
FII platform
The CEO noted that FII has evolved into an influential platform for collaboration, bringing local and international stakeholders together.
“FII has become a showcase for Saudi Arabia and a window to the world to show and demonstrate what we’ve been achieving,” he said. This year, he added, international interest has shifted from curiosity to active participation in the Kingdom’s growth story.
For Rafal, FII has provided valuable networking opportunities, bringing a diversity of stakeholders together and opening up new avenues for growth.
Abou Samra emphasized the role Rafal and other local developers play in this evolving landscape, saying: “I think it’s the mission of every local developer to open up and become a small platform for foreign investors.”
Redefining co-living
Rafal’s projects showcase an emphasis on international standards and adaptability to global real estate trends. Notably, the company’s Hive brand is redefining co-living in Riyadh through a partnership with a regional operator that initially launched Hive in Dubai.
“We have already launched five assets across Riyadh,” said Abou Samra, adding that Hive’s plug-and-play model meets the needs of young Saudis and expats by fostering community and flexibility.
Over the next five years, Rafal anticipates launching five Hive projects annually, aiming for a gross development value of SR8 billion ($2.1 billion).
Regarding the company’s IPO plans, Abou Samra noted that Rafal is adopting a measured approach, looking to establish stable revenue over the next three to five years. “Real estate is a cyclical market; usually, to go public, you need to have stable returns; hence the rental products that you are doing because it stabilizes our cash flows,” he said.
The CEO added: “It’s better to IPO a company when you have more visibility and more stability with the developments that are happening in the market.”
Rafal has been able to tap into a favorable financing environment in Saudi Arabia, where bank liquidity remains robust. Projects are primarily funded through off-plan sales. “The best thing to do when we have off-plan sales is that it’s basically free funding,” he added.
Creating communities
In line with Vision 2030, Rafal is focused on urban planning, helping to create vibrant communities that promote a modern, connected lifestyle. “It’s our duty as developers to feed the market with the proper supply; hence the projects that I mentioned,” Abou Samra said.
Rafal intends to replace outdated infrastructure with projects that cater to the Kingdom’s fast-paced development, emphasizing that “this is a story of transformation within the city that is even more interesting than the typical supply-demand economics.”
As for the residential community projects like Tilal Al-Khuzam, Abou Samra noted that the venture aligns with Saudi Arabia’s economic diversification goals, especially given the anticipated demand.
With a gross development value of SR3 billion, this project complements other Rafal initiatives, collectively contributing to a SR6 billion project portfolio launched in 2024 alone.
The growing demand for new residential spaces is evident in Rafal’s planned pipeline for Hive and Tilal Al-Khuzam, providing long-term value for the market.
The transformation in the Kingdom’s real estate market, driven by Saudi Arabia’s Crown Prince Mohammed bin Salman’s vision to make Riyadh one of the world’s top city economies, will continue to attract investors and developers worldwide. “The market is shifting from a predominantly local market in every aspect to an international market,” Abou Samra said.
The CEO affirmed that Riyadh’s progress under Vision 2030 is on track to meet these ambitious goals. “We are well on track for that,” he said, citing Rafal’s ability to meet both local and international demand for world-class residential properties.
