meed-logo

line1 line2 line3
SIGN IN / REGISTER

Opening up property sales in Saudi Arabia

29 May 2024

The June 2024 Agenda package also includes:

> Riyadh reins in spending
> PPP offers budget and efficiency routes
> Aramco explores PPP pathway

 

 

One way that many of Saudi Arabia’s project developers can fund their projects is through property sales.

This business model has been used to great effect in other regional markets, most notably Dubai, where major projects such as the Palm Jumeirah, Downtown Dubai and the Burj Khalifa have all been developed using inflows of cash from property sales – much of which has been to foreign investors.

The challenge for Saudi Arabia is that its renewed drive for investment comes at a testing time for the kingdom’s property market. The total number of real estate transaction volumes across all asset classes in the country decreased by 17% in 2023 to about 177,000, according to a report by property consultancy Knight Frank.

The total value of deals also fell by 9% to SR197.7bn in 2023, mainly due to a 16% fall in the number of residential transactions, which accounted for 58.7% of all real estate deals by value.

The firm says the contraction appears to be due to reduced affordability and evolving market dynamics, as the kingdom has achieved record house price growth. Borrowing has also become more expensive, especially outside Riyadh, where lower average monthly earnings make the transition to property ownership more challenging.

Growth could be boosted by a foreign ownership law

The capital is the only sub-market in the country that has defied the trend, as transaction volumes increased by 7% compared to 2022. Riyadh is receiving a rising number of expatriate workers and an influx of workers from other parts of the kingdom as project activity ramps up in the city.

Government targets

Real estate is already a vital element of the Saudi economy, contributing about 7% of GDP in 2021, and the government aims to increase this to 10% by 2030. The objective is to increase homeownership by Saudi nationals to 70% by 2030, from 63.74% in 2023. 

Much of the growth has now been realised. When the homeownership targets were introduced in 2016, the percentage was just 47%.

The growth could be boosted by a foreign ownership law. In 2003, Dubai demonstrated the power of unleashing pent-up demand for property, and there has been speculation over the past year that Riyadh could introduce new legislation. 

At the Saudi Cityscape property exhibition in Riyadh in September 2023, project developers, including gigaproject companies, discussed the imminent implementation of a new law. If those expectations are realised, then real estate could be an even more important driver for project activity in the kingdom.

By Colin Foreman and Yasir Iqbal 

MEED's April 2024 special report on Saudi Arabia includes:

> GVT & ECONOMY: Saudi Arabia seeks diversification amid regional tensions
> BANKING: Saudi lenders gear up for corporate growth
> UPSTREAM: Aramco spending drawdown to jolt oil projects
> DOWNSTREAM: Master Gas System spending stimulates Saudi downstream sector
> POWER: Riyadh to sustain power spending
> WATER: Growth inevitable for the Saudi water sector
> CONSTRUCTION: Saudi gigaprojects propel construction sector
> TRANSPORT: Saudi Arabia’s transport sector offers prospects

 

https://image.digitalinsightresearch.in/uploads/NewsArticle/11823753/main.gif
MEED Editorial

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Construction advances on Riyadh King Salman airport

    19 May 2026

    King Salman International Airport (KSIA) is advancing airside infrastructure works under its long-term expansion programme in Riyadh, including the delivery of a third runway and new private aviation facilities.

    Construction activity on the central runway programme is progressing across several operational zones, with works covering excavation, grading, site preparation and taxiway-enabling infrastructure to support upcoming phases.

    The third runway is intended to increase airfield capacity and cater to the airport’s future operational requirements.

    In a separate development, KSIA has completed initial landside works for the private aviation apron, marking a milestone in the rollout of its executive aviation infrastructure.

    The completed scope includes pavement markings, waterproofing systems, firefighting infrastructure chambers and final operational inspections to support readiness for the next stages.

    KSIA has also secured General Authority of Civil Aviation (GACA) approval for phase one airside works, which includes the planned connection of Taxiway Alpha to the private aviation facilities, strengthening operational integration between executive aviation assets and airfield movement areas.

    The packages form part of the wider KSIA masterplan, which covers about 57 square kilometres and supports Saudi Arabia’s objective of positioning Riyadh as a global aviation and logistics hub.

    The airport aims to accommodate up to 100 million passengers by 2030.

    Saudi Arabia plans to invest $100bn in its aviation sector. The Saudi Aviation Strategy, announced by GACA, aims to triple annual passenger traffic to 330 million travellers by 2030. It also targets air cargo growth to 4.5 million tonnes and an increase in total air connections to more than 250 destinations.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16906496/main.jpeg
    Yasir Iqbal
  • Aldar launches Al-Ghadeer Gardens project

    19 May 2026

    Abu Dhabi-based real estate developer Aldar Properties has launched the Al-Ghadeer Gardens project, located on the Abu Dhabi-Dubai border.

    The new residential development will feature 437 villas and townhouses, offering two-, three- and four-bedroom homes.

    Al-Ghadeer Gardens will include more than 30,000 square metres of landscaped open space, supporting a pedestrian-friendly layout and outdoor-focused living.

    As part of its sustainability and wellbeing approach, the project is targeting Estidama Pearl 2 and Fitwel 2-star certifications.

    Earlier this month, Aldar announced its Q1 financial results, reporting a 20% year-on-year increase in net profit after tax to AED2.3bn ($626m).

    Aldar Development recorded a 14% year-on-year rise in revenue to $1.7bn, while earnings before interest, taxes, depreciation and amortisation (Ebitda) increased 23% to $599m.

    UAE revenue backlog rose to $17bn at the end of March from $16.6bn at the end of December, with an average duration of 29 months.

    The group attributed its performance to revenue from its development backlog and steady income from its investment properties.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16906154/main.jpg
    Yasir Iqbal
  • Iraq trucks oil from the south to Kurdish pipeline

    19 May 2026

     

    Iraq is trucking crude from Basra to the north of the country to be exported via the Iraq-Turkiye Pipeline (ITP), according to industry sources.

    The oil is being loaded into trucks at fields in Basra before being driven to the north, where it is injected into the pipeline network at Khurmala Dome, in the northern section of the Kirkuk field.

    Once it has entered the network at Khurmala Dome, it is transported to the main ITP export pipeline and eventually to the port of Ceyhan in Turkiye, where it can be loaded onto ships.

    The volumes of crude being transported using trucks have surged in Iraq since the US and Israel attacked Iran on 28 February, starting a regional conflict that has disrupted shipping through the Strait of Hormuz.

    One source said: “Most of the crude that is being trucked out of Iraqi oil fields at the moment is going to Syria, but some is being trucked to the north where it is being funnelled through the pipeline.”

    Even with the additional volumes being trucked from the south, Iraq is struggling to boost exports using the ITP.

    At the end of March, Amer Khalil, the director-general of Iraq’s state-run North Oil Company, said that Iraq was exporting 200,000 barrels a day (b/d) through the ITP.

    At the time, he said that the pipeline, which runs from Kirkuk in Iraqi Kurdistan to the port of Ceyhan in Turkiye, was expected to start transporting 300,000 b/d “in the near future”.

    As of early May, the pipeline was still exporting about 200,000 b/d, despite having a nameplate capacity of 1.4 million b/d.

    One of the factors said to be stopping increased volumes from being shipped through the pipeline is that several key oil fields in northern Iraq evacuated staff and stopped production after the US and Israel started their war with Iran.

    Another factor is that Iraq has not invested in domestic pipeline infrastructure to pipe production from Basra to Kurdistan, where it could be exported via the Kurdish ITP route.

    READ THE MAY 2026 MEED BUSINESS REVIEW – click here to view PDF

    Global energy sector forced to recalibrate; Conflict hits debt issuance and listings activity; UAE’s non-oil sector faces unclear recovery period amid disruption.

    Distributed to senior decision-makers in the region and around the world, the May 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/16902345/main1824.jpg
    Wil Crisp
  • Kuwaiti oil services company secures credit facility

    19 May 2026

    The Kuwaiti drilling and oilfield services provider Action Energy Company (AEC) has secured a new credit facility and renewed and expanded an existing facility in order to support the company’s rig fleet expansion.

    The new facility and the expansion were obtained from two Kuwaiti banks and had a combined value of KD40.9m ($132.8m).

    In its statement, AEC said that the facilities support the financing and deployment of new rigs linked to contract awards previously announced with the state-owned upstream operator Kuwait Oil Company (KOC).

    The company added: “They further reinforce AEC’s financing structure and strengthen its ability to execute its contracted fleet expansion plan through 2026 and beyond, while maintaining a disciplined approach to capital allocation.”

    The new credit facility was obtained from Kuwait International Bank (KIB).

    It is worth KD7.3m ($23.7m) and will finance two new 750-horsepower (HP) rigs.

    The renewal and expansion of the existing facility is worth KD33.6m ($109.1m) and was obtained from Commercial Bank of Kuwait (CBK) to finance four new 1,500 HP rigs and one 1,000 HP rig, in addition to the renewal of the existing facilities.

    AEC announced its financial and operational performance for the first quarter earlier this month.

    The company reported a net profit of KD2.2m ($7.1m).

    The company’s revenue grew by 69.2% year-on-year, primarily driven by the expansion of the operating rig fleet from 13 rigs in the first quarter of 2025 to 20 rigs in the first quarter of 2026, including the full-quarter contribution of 10 new rigs deployed during 2025.

    The company is benefitting from a substantial multi-year contracted backlog with KOC.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16902234/main.jpg
    Wil Crisp
  • Emirates awards $5bn engineering complex deal

    18 May 2026

    Register for MEED’s 14-day trial access 

    Emirates Airline has awarded a AED19bn ($5bn) contract to build one of the world's largest engineering complexes in Dubai South.

    The contract was awarded to Beijing-headquartered China Railway Construction Corporation (CRCC).

    CRCC is being supported by French firm Artelia, as the project consultant.

    The complex will cover over 1 million square metres (sq m).

    It will comprise 77,000 sq m of dedicated workshop space for maintenance and repairs, 380,000 sq m of storage and logistics capacity, a 50,000 sq m administrative building for Emirates Engineering and 15,000 sq m of training facilities.

    It will be the world's only complex with a capacity to service 28 wide-body aircraft simultaneously.

    The airline officially broke ground on the project on 18 May. 

    The groundbreaking ceremony was attended by Sheikh Ahmed Bin Saeed Al-Maktoum, chairman and CEO of Emirates Group; Tim Clark, president of Emirates Airline; Khalifa Al-Zaffin, executive chairman of Dubai Aviation City Corporation and Dubai South; and Dai Hegen, chairman of CRCC.

    The facility will enable large-scale retrofits, cabin redesigns and structural modifications to be performed in-house, thereby reducing turnaround times.

    The engineering complex is scheduled for completion in 2030 and will be located at Al-Maktoum International airport.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16895218/main.jpg
    Yasir Iqbal