Major Developments in Saudi Arabia: Real Estate, Tourism, and Investment Surge
Saudi Arabia is witnessing transformative changes across various sectors, marked by significant policy shifts and booming industries. This article delves into the critical developments shaping the kingdom’s economic landscape, from real estate and tourism to sports and investment strategies.
Rent Freeze in Riyadh: A Relief for Residents
In a recent royal decree, Saudi Arabia announced a five-year freeze on rent increases for both residential and commercial properties within Riyadh. Effective from September 25, 2025, this policy aims to stabilize the rental market, ensuring that residents are not subjected to sudden price hikes. The decision comes in response to Crown Prince Mohammed bin Salman’s directives, reflecting a broader effort to enhance living conditions in the capital.
This initiative also allows the Real Estate General Authority to extend the rent freeze to other cities with the approval of the Council of Economic and Development Affairs, potentially impacting rental dynamics throughout the nation.
Skyrocketing Property Sales in Riyadh and Jeddah
As a result of the new regulations, property sales in Riyadh have surged dramatically. In the first half of 2025, the city’s residential property sales saw a remarkable 63% increase year-on-year, reaching approximately $17.5 billion (SR65.7 billion). This surge is attributed to a significant rise in transactions, totaling 35,600, which is a 10% increase compared to 2024.
Similarly, Jeddah experienced robust growth, with property sales valued at $4.9 billion (SR18.3 billion), marking a 34% year-on-year increase. The volume of transactions in Jeddah also increased by 25%, further underscoring the strong demand in the Saudi real estate market.
Tadawul Sees Historic Gains Amid Potential Policy Changes
The Tadawul All-Share Index recently recorded one of its most substantial gains in five years, climbing over 5%. This surge followed reports that Saudi Arabia is considering lifting foreign ownership limits on listed companies, potentially allowing foreign investors to acquire majority stakes—a significant policy shift. The increased trading volume, nearly doubling the 90-day average, reflects heightened investor optimism regarding these changes.
Tourism Boom: The NEOM Vision
Saudi Arabia’s tourism sector is gearing up for a revolution with monumental projects like the NEOM Magna initiative, which aims to create a stunning 120km-long coastal destination featuring twelve luxury resorts. This ambitious project targets sustainability and innovative architecture, positioning the Kingdom as a premier travel destination. From eco-resorts to high-tech hotels, NEOM is at the forefront of the country’s efforts to attract global tourists and investors.
Airport Performance Rankings Showcase Growth
August performance reports from the General Authority of Civil Aviation (GACA) highlight the ongoing improvements in Saudi airports. King Khalid International Airport in Riyadh topped the compliance rankings, achieving an impressive 82% score. This report aligns with broader strategies to enhance service quality and optimize passenger experiences at airports across the country.
Future Transportation Plans: Qiddiya High-Speed Rail
In another exciting development, Saudi Arabia is advancing plans for a high-speed rail project linking King Salman International Airport, the King Abdullah Financial District (KAFD), and Qiddiya City. This public-private partnership initiative is expected to cut travel times to just 30 minutes across these key locations, emphasizing the Kingdom’s commitment to modernizing its transportation infrastructure.
SME Growth: A Testament to Entrepreneurial Spirit
The entrepreneurial landscape in Saudi Arabia is thriving, with over 80,000 new small and medium-sized enterprises (SMEs) registered in the second quarter of 2025 alone. This brings the total count to approximately 1.7 million active records, showcasing increasing participation from youth and women entrepreneurs, who respectively account for 38% and 47% of total SME registrations.
VAT Compliance Urgency for Businesses
As businesses continue to grow, the Zakat, Tax and Customs Authority (ZATCA) has issued reminders for VAT compliance. Businesses exceeding annual supplies of SR40 million ($10.7 million) are urged to file their tax returns punctually. Early submission is advised to avoid penalties that can range from 5% to 25% of the VAT amount due.
Expanding Global Presence: Roshn Saudi League Media Deals
In sports, the Roshn Saudi League is gaining international traction through new media deals that will broadcast matches in over 180 territories, including partnerships with ESPN, Fox Sports, and DAZN. This robust expansion reflects the growing global interest in Saudi football and aims to elevate the league’s status on the world stage.
Upcoming FII9 Conference: A Gathering of Global Leaders
Saudi Arabia’s Future Investment Initiative (FII) is gearing up for its ninth edition in October 2025, expecting participation from over 15 world leaders and 600 industry experts. This flagship event focuses on critical issues like innovation and economic growth, reinforcing the country’s position as a key player in global discussions.
By examining these developments closely, it’s clear that Saudi Arabia is undergoing a significant transformation. From robust property markets to dynamic tourism projects and an invigorated investment landscape, the country’s future looks promising as it embraces both local and global opportunities.
