Sources familiar with the matter revealed that the discussions have been ongoing for several months, with Roshn seeking to close the deal in the first quarter of 2025. The funds will primarily be used to support Roshn’s rapid growth in the residential construction sector, particularly in line with the Kingdom’s Vision 2030 initiative, which aims to transform Saudi Arabia’s economic landscape, with a significant emphasis on real estate and infrastructure projects. The Kingdom has committed to boosting housing development to accommodate the growing population and support urbanization efforts, creating opportunities for major developers like Roshn.
Roshn, founded in 2020 as a subsidiary of the Public Investment Fund (PIF), has quickly emerged as one of Saudi Arabia’s leading real estate developers. The company is spearheading a range of residential projects, particularly focused on high-quality, affordable housing aimed at middle-income families. This approach aligns with the Saudi government's efforts to make homeownership more accessible, a core objective of Vision 2030.
The funding round, which is still in the negotiation phase, is expected to be one of the largest for the real estate sector in Saudi Arabia in the upcoming year. According to industry analysts, the capital raised will allow Roshn to fast-track the completion of its ongoing projects and begin new developments in major urban centers. This financing effort comes at a time when the Kingdom is experiencing a boom in its real estate market, driven by both government initiatives and a rising demand for housing, particularly in cities like Riyadh and Jeddah.
In addition to the financial backing from international banks, Roshn is also eyeing potential partnerships with other key players in the real estate and construction industries to further expand its project portfolio. The company’s plans are in alignment with the broader goals set out by the Saudi government to modernize its infrastructure and diversify the economy away from oil dependence.
Roshn's growth strategy is heavily influenced by the public sector’s push to transform the housing market in Saudi Arabia. In 2021, the government launched several initiatives aimed at improving homeownership rates, including offering subsidized loans to qualifying buyers and streamlining the approval process for new developments. This has allowed developers like Roshn to secure favorable conditions for financing and significantly reduce project risks.
A significant portion of Roshn’s upcoming financing will likely be directed towards developments that cater to the growing demand for housing in major urban centers. Over the last few years, Saudi Arabia has experienced rapid urbanization, with large numbers of young professionals and families moving to cities for work and educational opportunities. This shift has created a need for modern, affordable homes that meet the demands of a new generation of Saudi residents.
While discussions around the financial deal are still ongoing, insiders suggest that Roshn is negotiating terms that will allow the company to maintain its aggressive expansion plans while also ensuring long-term financial stability. The company is expected to leverage its strong connections with PIF, which has invested heavily in various sectors of the Saudi economy, including real estate. Analysts believe that the backing of PIF, along with Roshn’s rising profile, will help the company secure favorable financing terms from international banks.
The competitive nature of Saudi Arabia’s real estate market has also prompted Roshn to explore strategic partnerships with other developers, particularly in sectors such as luxury housing and commercial real estate. As the country’s housing market continues to evolve, developers are increasingly focusing on creating mixed-use communities that offer residents more than just living spaces but also integrated commercial, retail, and leisure facilities. Roshn’s commitment to these types of developments is seen as a key factor in its appeal to potential investors and partners.
Despite the challenges posed by the global economic landscape and the ongoing uncertainty in international markets, Saudi Arabia’s real estate sector remains one of the most attractive for investment. Experts predict that the Kingdom will continue to be a magnet for both domestic and foreign capital, thanks to government support for major infrastructure projects and a growing appetite for residential and commercial developments.