Riyadh on track to become a global super hub as private sector booms on back of government investment programme success

• Economy transitioning from oil dependence into a powerhouse for finance, culture and lifestyle
• Prime office rents jump by 23% and vacancy rates fall to 2% as multinationals move in
• Surging office and residential demand presents major opportunities for inward investment

Riyadh, Saudi Arabia | 16 July 2025: Knight Frank has identified Riyadh as a rising ‘super hub of the future’ in its latest Emerging Wealth Hubs Series white paper. The global property consultant says the Saudi capital is rapidly transforming into a dynamic destination for global wealth, driven by Saudi Arabia's ambitious Vision 2030, strategically diversifying its economy away from oil dependence and evolving into a powerhouse for finance, culture and lifestyle.

Riyadh is at the forefront of Saudi Arabia's economic transformation, attracting significant domestic and international business activity that saw the national unemployment rate fall to a record low of 7% in Q4 2024. A critical driver of this momentum has been the rise in private sector activity and foreign direct investment. In Q4 2024, Saudi Arabia issued more than 160,000 new business licences, a 67% increase from the same period the year before, bringing the total number of registered commercial entities in the Kingdom to more than 1.6 million.

A key initiative is the Regional Headquarters Programme, which has already surpassed its 2030 target, with around 600 international companies, including Bechtel, Northern Trust and PwC, committing to establishing regional bases in Riyadh. This corporate influx has led to intense demand for high-quality commercial real estate, with grade-A office vacancy rates at just 2%. These prime office rents have surged by 23% in the past year, and by 84% since Q1 2020, whilst grade-B office rents have also increased, up by 24% year-on-year.

To meet future demand, Riyadh's office inventory is projected to expand from 5.5 million sqm to 9.8 million sqm by 2027. This growth is supported by state-led infrastructure developments and rising interest from institutional investors targeting long-term exposure to the Kingdom’s evolving office landscape.

Faisal Durrani, Partner – Head of Research, MENA, said: “The private sector is booming, with new business licences up by two-thirds in a single year and vacancy rates for grade-A offices among the lowest in the world. This wave of entrepreneurialism is both a result of and a catalyst for Riyadh’s evolving business environment, and the city’s ability to attract human and financial capital is accelerating its emergence as a future-ready global wealth hub.”

Riyadh is integrating sustainability into its rapid development. Green building initiatives are gaining momentum, supported by robust regulations and public-private partnerships. The King Abdullah Financial District is a prime example, recognised as the world's largest LEED Platinum-certified mixed-use business centre. The Kingdom has also introduced the Mostadam rating system to benchmark sustainable construction practices. The Green Riyadh programme, which aims to plant 7.5 million trees, is enhancing liveability, improving air quality and increasing per capita green space, positioning Riyadh as a model for sustainable cities in arid climates.

A liveable city

Riyadh is quickly becoming one of the Middle East's most liveable cities, offering a secure and stable environment for residents and international talent. It consistently ranks highly in global safety and quality-of-life indices. Significant investments in urban infrastructure, such as the 220 km Sports Boulevard, the expanding King Khalid International Airport – serving 113 domestic and international destinations – and the Metro and public bus network, are redefining urban mobility and connectivity.

Alongside this, initiatives like the Green Riyadh programme are increasing green spaces, enhancing the city's sustainability and appeal. These developments are attracting expatriates, entrepreneurs and families, reshaping perceptions and reinforcing Riyadh's emergence as a global city of choice for the next generation of talent.

Harmen De Jong, Regional Partner – Head of Consultancy, MENA, said: “Urban mobility in Riyadh is being redefined through major investments in infrastructure. These transport enhancements are not only reducing congestion but also improve air quality and overall urban resilience. Combined with the rise in major multinationals opening offices in the city and high-quality residential and leisure developments, Riyadh has a uniquely compelling offer as a live, work, play destination both within the GCC and globally.”

Premier leisure destination

Adding to its appeal as a place to live, Riyadh is establishing itself as a premier destination for leisure and culture. The Riyadh Season, a flagship cultural initiative, attracted more than 18 million visitors in 2024, showcasing diverse entertainment from concerts to esports. The broader entertainment sector is projected to create 450,000 jobs and contribute 4.2% to Saudi Arabia’s GDP by 2030.

Riyadh's successful bids to host the 2030 World Expo and the 2034 FIFA World Cup underscore the city’s increasing global visibility, with Expo alone expected to generate US$ 94.6 billion in economic impact. Enhanced accessibility through new visa-free policies for 66 countries and the launch of Riyadh Air are further boosting tourism.

Having already surpassed the original Vision 2030 goal by reaching 106.2 million visitors in 2023, Saudi Arabia has raised the bar, aiming to welcome 150 million visits by 2030. Riyadh is playing a pivotal role in that growth. Hotel supply continues to expand, with more than 1,100 new keys delivered in 2024, bringing total stock to 24,600, 57% of which are in the upscale or upper-upscale categories. Supply is expected to exceed 30,000 rooms by 2027.

Amar Hussain, Associate Partner – Research, MENA, said: “Riyadh's strategic vision, coupled with its robust economic growth, enhanced liveability, burgeoning entertainment sector and strong commitment to sustainability, positions it as a leading global wealth hub of the future, attracting talent, investment and tourism on an unprecedented scale. Its global positioning as a leisure destination will only increase further when the eyes of the world turn to the city for the 2030 World Expo and the 2034 FIFA World Cup.”

Residential growth and future demand

The capital’s residential sector, traditionally driven by local buyers, is now opening to international investors with the introduction of new Premium Residency Visas linked to real estate ownership. The city's economic growth and job creation have fuelled demand, leading to sustained price appreciation. Apartment prices have surged by 75% and villa prices by 40% since 2019. In 2024 alone, apartment prices rose by 10.6% and villa values by 6.3%.

Residential sales volumes increased by 44.2% year-on-year in 2024 to 63,000 transactions, representing 61.5% of Riyadh’s total real estate transaction value. Despite a slightly more modest 30% increase in total value to SAR 75.7 billion, perhaps reflecting affordability pressures in some submarkets, the market remains strong. Riyadh is projected to require 305,000 new homes over the next decade to accommodate domestic demand alone, presenting significant opportunities for investors and developers.

Hussain said: “With evolving buyer profiles, increasing international interest and sustained local demand, Riyadh’s housing market is positioned for continued expansion and diversification. Our latest projections highlight the scale of opportunity for investors and developers in one of the region’s fastest-moving residential markets.”