RIYADH: Talaat Moustafa Group’s Saudi subsidiary has signed a preliminary agreement with Public Investment Fund-owned ROSHN Group to establish a joint company to explore a mixed-use development in Riyadh. 

TMG Saudi will hold a 51 percent stake in the proposed joint company, while ROSHN will own 49 percent, according to a disclosure by TMG Holding to the Egyptian Exchange. 

The project, which is planned for a prime location in Riyadh, is expected to comprise more than 55,000 residential units, alongside retail, commercial, hospitality, entertainment, healthcare and education facilities, as well as parks and public spaces, the company said. 

The agreement follows a June memorandum of understanding between TMG Saudi and the Saudi PIF to explore opportunities in real estate development across the Kingdom.  

“The fully integrated community under evaluation is expected to leverage TMG’s proven development model to introduce a differentiated proposition in Saudi Arabia,” TMG said in its bourse filing to the EGX. 

The development is still under evaluation, with the company’s disclosure describing the arrangement as a preliminary agreement to establish a joint company to explore the project.  

Saudi expansion 

The agreement follows the June 7 MoU covering residential, commercial, hospitality and retail developments under PIF’s urban development and livability ecosystem, part of its 2026-2030 strategy. The ecosystem spans housing, retail, offices and community services, supporting greater private-sector participation and Saudi Arabia’s target of 70 percent homeownership among citizens by 2030. 

Daniel Al Banna, financial market analyst and wealth management specialist at Hewar Group, told Arab News that the latest agreement represents a more concrete step in the relationship.  

“The June MoU established the broader framework for cooperation, while the latest agreement moves toward a more concrete structure with a defined joint venture and project,” he said. 

Al Banna said TMG’s majority stake provides a platform for expanding its integrated-community development model in Riyadh, while ROSHN brings its strategic real estate portfolio and PIF backing.  

Investment outlook 

Aseel Al-Aranki, head of financial market analysis at CG Invest, told Arab News that the agreement moves the partnership from a broad framework toward a specific project with a defined ownership structure.  

“This is a credibility-building, not yet capital-committing, disclosure,” she said. 

Al-Aranki said the agreement represents progress in TMG’s Saudi expansion, although the project’s value, financing structure and timeline have yet to be disclosed. 

TMG said the project would further strengthen its foreign-currency position and support its continued regional expansion in the Saudi market.