Construction is rapidly progressing at “Marafy,” a major residential project in northern Jeddah, led by ROSHN Group, the real estate arm of Saudi Arabia’s Public Investment Fund (PIF).
Once completed, the project is expected to accommodate over 130,000 residents, making it one of the Kingdom’s most significant residential developments.
Although the overall cost of the project has not been disclosed, ROSHN secured a $2.4 billion credit facility last October from a consortium of local banks to fund its developments across Saudi Arabia.
A signature feature of Marafy is its 10.2-kilometer-long and 100-meter-wide canal, stretching from the Red Sea coast through the natural Obhur Creek,
traversing one of Jeddah’s fastest-growing areas.
This design draws comparisons to Dubai’s famous water canal that reconnected Dubai Creek to the Gulf.
In a recent webinar, Roger Fatovic, ROSHN’s Chief Project Delivery Officer, stated: “This type of canal is extremely rare globally; we are actively digging a massive trench as we speak.”
Like prominent regional developers Emaar and Aldar, ROSHN is a key player in supporting Saudi Arabia’s Vision 2030 goals,
particularly the target of increasing the homeownership rate among Saudi citizens to 70% by 2030, up from 64% by the end of 2023.
The Marafy development spans 7 million square meters and will be executed over seven phases within three years.
Phase one includes digging a 3-kilometer section of the canal and constructing three pedestrian bridges.
Upon completion, the project will offer around 52,000 residential units, nine major public bridges, and a variety of retail, hospitality, and leisure facilities.
Despite the Kingdom’s ambitious infrastructure drive, falling oil prices — which still account for about 60% of government revenues — have raised concerns about public spending and borrowing.
PIF recently instructed its portfolio companies to cut expenditures, leading to hiring freezes and project delays.
Currently, ROSHN is developing 13 projects across Saudi Arabia, leveraging a vast 200 million square meter land bank, with a long-term goal of delivering 400,000 residential units nationwide.
According to a 2024 report by global consultancy Knight Frank, Saudi Arabia is projected to become the world’s largest construction market by 2028, with an expected output value of $181.5 billion.
Additionally, ROSHN is in negotiations to secure an extra $670 million loan from an international lender to support its ambitious growth plans.
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