Saudi Arabia-based Retal Urban Development Company said it has signed an agreement with National Housing Company (NHC) to build a major residential project in the Al Fursan suburb of Riyadh at a total investment of SAR5.2 billion ($1.39 billion).

Spanning over 1 million sq m, the key development will feature a total of 4,839 residential units – including villas and apartments – along with commercial and mixed-use components, said Retal in its filing to Saudi bourse Tadawul.

The scope of work includes design, marketing, financing, construction and delivery of the units, as well as implementation of full infrastructure works.

On the financial impact, Retal said it is expected to have a positive impact on the company’s results during the development period of the project.

The entire project will be completed within a four-year period, it added.

Meanwhile, in November, NHC had signed a sub-development agreement with Turkish company Emlak Konut to develop several allocated lands in the Makkah Gate Destination in the Saudi city at an investment value of over SAR1 billion ($266 million).

The strategic deal was signed by NHC Chief Executive Mohammed Albuty and Emlak Konut General Manager Yasir Yilmaz  under the patronage of Minister of Municipalities and Housing Majed Al Hogail on the sidelines of NHC’s participation as a founding partner in the Cityscape Global 2025 exhibition.

The agreement aims to develop allocated areas totalling 255,000 sq m within the Makkah Gate destination by constructing more than 1,000 residential villas in accordance with the highest standards of quality and modern urban design.