Is Saudi Arabia's Riyadh going to be the 'super hub of the future'?

Dubai: Riyadh as a 'super hub of the future'?

That's what the real estate consultancy Knight Frank is projecting as the Saudi city oversees one of the most ambitious and fast-track developments, whether it's infrastructure, housing, office towers, or creating retail and entertainment destinations.

"The Saudi capital is rapidly transforming into a dynamic destination for global wealth... strategically diversifying its economy away from oil dependence and evolving into a powerhouse for finance, culture and lifestyle," says Knight Frank.

Lowering Saudi unemployment

Riyadh continues to attract 'significant domestic and international business activity' - and which led to nation-wide unemployment rate fall to a record low of 7% in Q4-2024'.

In the final quarter of last year, Saudi Arabia issued more than 160,000 new business licences, which is a 67% increase from the same period the year before. It brought the total number of registered commercial entities in the Kingdom to more than 1.6 million.

Regional HQs

"A key initiative is the 'Regional Headquarters Programme', which has already surpassed its 2030 target, with around 600 international companies," says the report.

This includes corporate giants such as Bechtel, Northern Trust and PwC,w which have committed to 'establishing regional bases in Riyadh'.

All of which has led to Grade-A office vacancy rates of 'just 2%', while prime office rents surged by 23% in the past year (and by 84% since Q1-2020).

Riyadh's office inventory is projected to expand from 5.5 million square metres to 9.8 million square metres 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," says the statement.

King Khalid Airport

In parallel, the infrastructure investments are moving more or less on schedule. There are the attractions such as the 220-kilometre stretch of Sports Boulevard, an 'expanding' King Khalid International Airport – currently serving 113 domestic and international destinations – and the Riyadh Metro and public bus network.

"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," says Knight Frank.

"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,” said Harmen De Jong, Regional Partner – Head of Consultancy, MENA at Knight Frank.