ROSHN Group and Talaat Moustafa Group Saudi have signed a preliminary agreement to create a joint company that will assess development of a large mixed-use community in Riyadh expected to contain more than 55,000 homes.Under the proposed structure, TMG Saudi will own 51 per cent of the venture and ROSHN Group, a company owned by Saudi Arabia’s Public Investment Fund, will hold 49 per cent. The agreement sets a framework for the partners to evaluate the scheme and undertake its development in phases if the project proceeds.
The companies said preliminary studies envisage a residential-led community supported by retail, commercial, hospitality, leisure, healthcare and education facilities, together with parks and public spaces. They have not disclosed the precise site, describing it only as a prime location in Riyadh.
Detailed master planning and preparation of the project’s business case are expected to follow. No final investment decision, total development value, financing structure, construction timetable or sales schedule has been announced, leaving the project at an evaluation stage rather than a committed construction programme.
The planned scale would make the scheme one of the larger residential developments under consideration in the Saudi capital. The proposed unit count also exceeds the roughly 30,000 homes planned for ROSHN’s existing SEDRA community in northern Riyadh, although the two developments are separate projects and the companies have not said whether the new scheme will follow SEDRA’s housing mix.
ROSHN said the partnership would combine its knowledge of the Saudi market and land portfolio with TMG Saudi’s experience in developing large integrated communities. The companies said the proposed venture would examine opportunities spanning housing and commercial development as well as hospitality, retail and community services.
The proposed arrangement also gives ROSHN a minority position while leaving operational control with TMG Saudi, subject to the terms agreed by the parties. That structure differs from a simple land sale or contractor appointment because both groups would participate through the jointly owned vehicle. The companies have not disclosed how land will be contributed, how equity funding would be divided beyond the ownership percentages, or whether external debt will be used. Those matters are expected to form part of the business-case work now under way.
The agreement follows a memorandum of understanding signed on June 7 between TMG Saudi and the Public Investment Fund to explore mixed-use real estate projects across Saudi Arabia. That earlier arrangement covered potential residential, commercial, hospitality and retail developments and formed the basis for further discussions that have now produced a defined ownership structure for the Riyadh venture.
TMG Holding, the Egypt-listed parent of TMG Saudi, said the proposed project would support its continued expansion in Saudi Arabia and strengthen its foreign-currency position. The group has already entered the kingdom’s residential market through Banan, its Riyadh development, which it has cited as part of its regional growth strategy.
For ROSHN, the agreement adds another private-sector partnership to a development programme that has increasingly used joint ventures and land development agreements. The company has signed deals with local developers for residential and commercial projects within SEDRA and has also broadened its portfolio into retail, hospitality, logistics, sport and other asset classes.
ROSHN’s wider housing programme forms part of Saudi Arabia’s Vision 2030 objectives, which include raising home ownership among Saudi households to 70 per cent by the end of the decade. The group has developments in Riyadh, Jeddah, Makkah and Dhahran and has positioned integrated communities as a central part of its residential strategy.
The preliminary nature of the latest agreement remains significant. Establishing the joint company would give the partners a vehicle to conduct planning and commercial evaluation, but further approvals and investment decisions would be required before full development begins. Neither company has announced land area, the expected mix of villas and apartments, construction phases or target completion dates.
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