Riyadh – Mubasher: Riyadh Development Company, known as ARDCO, has been assigned a long-term credit rating of ‘A-‘ on the Saudi Arabia national scale by S&P Global Ratings.

The rating, which carries a stable outlook, marks the first time the company has obtained a formal credit assessment from a global agency, successfully positioning the firm within the investment-grade category.

The assignment of the 'A-' rating reflects the robust financial standing of Riyadh Development Company and serves as a testament to its disciplined approach to fiscal management.

According to the company’s disclosure, the rating is underpinned by the high quality of its income-generating asset portfolio and a consistently low level of financial leverage.

S&P Global’s assessment further highlights the company’s strong capacity to meet its financial obligations, supported by a healthy balance sheet and significant liquidity reserves.

Riyadh Development currently maintains a strong liquidity position, characterized by a combined balance of cash and short-term investments totaling approximately SAR 1 billion.

This substantial capital reserve provides the company with a high degree of financial flexibility, ensuring it is well-equipped to cover its upcoming financing requirements and support its strategic initiatives without compromising its credit profile.

The attainment of this investment-grade rating is a direct outcome of the company’s disciplined execution of its Invest for Growth strategy.

Launched at the beginning of 2023, this phased transformation program was designed to modernize the company’s operations and solidify its standing as a leading institutional developer in the Kingdom.

The strategy is divided into distinct stages aimed at optimizing the current portfolio while preparing for future expansion.

During the initial phase of the transformation, the company focused heavily on enhancing operational efficiency and maximizing the returns generated from its existing asset base.

This period also involved a strategic review of its holdings, leading to the divestment of underutilized or non-core assets to streamline the balance sheet. These efforts created the necessary foundation for the second phase of the strategy, which is currently underway.

The second phase of the Invest for Growth plan focuses on business development and the diversification of the company’s investment portfolio across priority real estate sectors.

By targeting high-growth areas, Riyadh Development aims to build a more resilient framework of recurring revenue streams. This shift is part of a broader transition toward a holding company model, intended to foster sustainable, long-term growth and increase shareholder value.

The scale of the company’s ambition is reflected in its current development pipeline. Riyadh Development confirmed that the total value of projects currently under development has reached approximately SAR 9 billion.

This significant project volume is expected to be a primary driver of the company’s growth trajectory over the coming years, reinforcing its market position in alignment with the Kingdom’s broader economic development goals.

In the first quarter (Q1) of 2026, the Tadawul-listed group logged net profits valued at SAR 50.48 million and sales of SAR 103.89 million.