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Retal Urban shareholders OK 2M share buyback for staff incentives
Retal Urban Development shareholders approved a 2M share buyback for employee long-term incentives. The program supports retention and aligns management with shareholders.
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Retal Urban Development Co. shareholders approved the repurchase of up to two million shares for the company’s employee long-term incentive plan, the Saudi developer said Thursday.
The buyback covers roughly 0.7% of Retal’s outstanding shares, based on its latest filing. Shares repurchased under the program will be held as treasury stock and allocated to eligible employees over a multi-year vesting schedule, the company said.
Retal did not disclose a price range or a specific timeline for the buyback. The shareholder nod gives the board discretion to execute the repurchase on the Saudi exchange through a licensed broker. Any shares not used for incentives within the plan’s tenure will be cancelled, according to the filing.
The move aligns with a broader trend among Saudi-listed real estate firms using share buybacks to lock in talent. Employee incentive schemes tied to equity can help retain senior management in a tight labor market, where competition for project-development and finance executives has intensified, analysts at Al Rajhi Capital noted in a recent sector note.
Retal shares have traded in a narrow range this year, up roughly 3% year-to-date, lagging the TASI’s 8% gain. The stock last changed hands at SAR 7.95, valuing the company at about SAR 1.2 billion. The buyback plan does not mark a change in dividend policy, the company said.
The employee incentive program covers senior managers and key technical staff. Participants will receive shares subject to performance milestones and continued employment, according to the shareholder resolution. The structure is designed to align management decisions with long-term shareholder value, a common practice in Gulf corporates, governance consultant Zuhair Al-Harbi said.
Retal Urban Development, based in Riyadh, focuses on residential and commercial projects across the kingdom. The company reported net profit of SAR 98 million for the first half of 2025, up 12% from a year earlier, driven by higher handovers and cost controls. The buyback approval came at an extraordinary general assembly meeting held Wednesday.