Ladun Wins SAR 2.39B Riyadh Infrastructure Contracts

Ladun Investment Co. signed two infrastructure development contracts with the Royal Commission for Riyadh City on June 23, worth a combined SAR 2.39 billion ($637 million).

The contracts cover work on the Qirawan-Al Narjis and Namar land parcels in the capital. RCRC, the government body overseeing Riyadh's urban development, includes master planning and major infrastructure projects among its responsibilities.

Ladun, a Saudi real estate developer listed on the Tadawul, builds residential and commercial properties, along with mixed-use projects. The new contracts add to its project backlog. Infrastructure work typically generates revenue over two to four years, smoothing earnings across quarters.

Riyadh's population is expected to grow from about 7 million to 15 million by 2030. Development of new districts like the ones covered by these contracts is part of that expansion. Both parcels are slated for mixed-use development with housing, offices and retail.

RCRC has awarded a series of contracts this year for roads, utilities and other infrastructure work as part of the city's broader transformation under Vision 2030. Ladun's two contracts are among dozens of infrastructure awards the commission has issued.

Ladun shares closed at SAR 15.28 on the Tadawul, up 0.8% from the previous session. Trading volume was roughly in line with its three-month average.

The contracts are effective immediately. The company did not disclose specific completion dates.