ARDCO wins first S&P credit rating at A- with stable outlook

Riyadh Development Company has received its first-ever credit rating from S&P Global Ratings, which assigned ARDCO an A- national scale rating with a stable outlook. The result underscores the Saudi developer’s balance sheet strength and comes as the company pushes a growth strategy tied to new investment, recurring income and Vision 2030 goals.

Why it matters: - S&P Global Ratings’ A- rating gives ARDCO external validation of its financial strength and access to capital. - The stable outlook suggests confidence in ARDCO’s current credit profile as the company expands its investment platform. - The rating matters for investors because ARDCO is moving toward a more institutional real estate model with recurring revenue.

What happened: - Riyadh Development Company (ARDCO) said S&P Global Ratings assigned the company an A- national scale credit rating with a stable outlook on June 22, 2026. - The rating is ARDCO’s first-ever credit rating. - ARDCO is a listed Saudi Exchange developer and one of the Kingdom’s major real estate players.

The details: - The rating reflects ARDCO’s financial strength, conservative financial management and the quality of its income-generating assets. - S&P also pointed to ARDCO’s debt-free balance sheet and liquidity. - ARDCO said it holds about SAR 1 billion in cash and short-term investments, which it said is enough to cover upcoming needs. - Chief Executive Officer Jehad Alkadi said the rating follows the company’s “Invest for Growth” strategy, launched in 2023. - Alkadi said the strategy is aimed at improving operating efficiency, restructuring assets and building a leading institutional real estate developer. - ARDCO’s next phase centers on expanding its investment portfolio in priority real estate sectors and building recurring revenue streams. - The company is also moving toward a holding-company structure, Alkadi said. - ARDCO said it has projects worth about SAR 9 billion that support future growth. - Alkadi said the rating also fits into a broader institutional excellence program. - That program includes adopting ISO standards across governance, risk management, quality, sustainability and information security. - Chief Financial Officer Mohammed AlKulaib said ARDCO’s 2025 results supported the rating. - ARDCO reported operating revenues of SAR 384 million in 2025. - ARDCO reported total revenues of SAR 517 million in 2025. - ARDCO generated SAR 146 million in net cash from operations in 2025. - The company paid SAR 117 million in dividends in 2025. - ARDCO said it delivered an 8% return on invested capital and earnings of SAR 1.30 per share. - ARDCO said it has more than 30 years of experience in property development, management and investment. - The company was established in 1994 by Royal Decree. - ARDCO owns and manages an income-generating portfolio worth about SAR 4.2 billion. - Riyadh Municipality owns 24% of ARDCO through Remat Al-Riyadh Development Company.

Between the lines: - The rating appears to reward a mix of low leverage, cash liquidity and visible project pipeline rather than just historical earnings. - ARDCO is signaling a shift from asset ownership alone toward a more scalable operating and holding-company structure. - The emphasis on ISO standards and institutional excellence suggests the company is trying to look more like a mature, governance-led developer for investors.

What's next: - ARDCO will focus on expanding its portfolio in priority real estate sectors. - The company will work to increase recurring revenue streams as it transitions toward a holding-company structure. - ARDCO will continue its institutional excellence program and ISO adoption across key business functions. - The company’s SAR 9 billion project pipeline is expected to support growth in the coming years.

The bottom line: - ARDCO’s first S&P rating is a credibility boost that highlights a debt-free balance sheet, strong liquidity and a clearer growth story for investors.