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Three Factors Contributed to Saudi Real Estate Market’s Solidity in 2023

The real estate market is likely to grow in 2024 until it reaches $100 billion in 2030. (SPA)
The real estate market is likely to grow in 2024 until it reaches $100 billion in 2030. (SPA)
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Three Factors Contributed to Saudi Real Estate Market’s Solidity in 2023

The real estate market is likely to grow in 2024 until it reaches $100 billion in 2030. (SPA)
The real estate market is likely to grow in 2024 until it reaches $100 billion in 2030. (SPA)

The Saudi real estate market recorded deals with a total value of about SAR 277 billion ($74 billion), compared to SAR 223.5 billion in 2022.
Market statistics also showed that the size of the transaction area was about one billion square meters for both the years 2023 and 2022, while the number of real estate transactions declined by 20 percent from 325,000 to 260,000, along with a significant decrease in real estate deals in neighborhoods outside and on the outskirts of cities, specifically in the city of Riyadh.
Although the region’s economies are affected by several factors - including the continued increase of interest rates at a rapid pace, the impact of global supply chains due to geopolitical conflicts, and the rise in global inflation and its impact on the prices of raw materials - the effect of these factors on the Saudi real estate market remained limited during the past year.
In remarks to Asharq Al-Awsat, economic and real estate analysts attributed the market’s solidity and its maintenance of annual levels above SAR 200 billion to three main factors, in addition to the entry of a number of international companies into the real estate market and their search for new regional headquarters in Saudi Arabia.
In this context, Khaled Al-Mobid, CEO of Menassat Reality Company – a Riyadh-based real estate developer – said that three factors contributed to the cohesion of the real estate market in 2023. Those include expectations for the positive growth of the Saudi economy, the local and global confidence it enjoys, and the large and growing demand for real estate in major cities and business centers, specifically in Riyadh.
In addition, Al-Mobid pointed to Riyadh’s winning of the hosting of Expo 2030 and two important football tournaments, the Asia Cup 2027 and the World Cup 2034.
He explained that the performance of the Saudi real estate market in 2023 was very positive and contradicted many of the expectations of a number of analysts and real estate experts who projected that the market would be affected by high inflation and real estate prices, which would impact the consumers’ purchasing power.
Al-Mobid said that the market performance may continue in a balanced manner in 2024, while maintaining previous gains, adding that the market faces great challenges represented by the rise in interest rates, as well as the prices of building materials, and the high costs of construction and land.
For his part, economic expert and head of the International Center for Strategic Studies, Dr. Khaled Ramadan, told Asharq Al-Awsat that the real estate market was likely to grow during 2024, noting that its size would reach $100 billion by 2030.
The sector performance is supported by the ongoing movement to accelerate the construction of housing projects, the growth of the tourism-related hospitality market, and the development of infrastructure in preparation for hosting the Riyadh exhibition Expo 2030, Ramadan remarked.
​He added that he expects the growth momentum to continue during the current year, thanks to improved consumer income, increased demand for family and commercial housing, and the entry of more international companies searching for new regional headquarters.
Ramadan described the performance of the Saudi real estate market during 2023 as “good,” thanks to the strong demand, which raised real estate prices in some major cities, specifically in Riyadh and Jeddah, by 7 percent at the end of the third quarter. He noted that this momentum has increased the size of the real estate market to $74 billion in 2023.

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Business

Saudi Arabia, Switzerland Sign Agreement on Reciprocal Protection of Investments

The agreement aims to strengthen and stabilize the investment environment, protect investors’ rights, and support the flow of mutual investments between the two countries. SPA
The agreement aims to strengthen and stabilize the investment environment, protect investors’ rights, and support the flow of mutual investments between the two countries. SPA
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Saudi Arabia, Switzerland Sign Agreement on Reciprocal Protection of Investments

The agreement aims to strengthen and stabilize the investment environment, protect investors’ rights, and support the flow of mutual investments between the two countries. SPA
The agreement aims to strengthen and stabilize the investment environment, protect investors’ rights, and support the flow of mutual investments between the two countries. SPA

Saudi Minister of Foreign Affairs Prince Faisal bin Farhan bin Abdullah and Minister of Investment Fahad Al-Saif have participated in the Saudi-Swiss Investment Roundtable Meeting in Jeddah, which was followed by the signing of an investment agreement between the two countries.

The meeting took place in the presence of Swiss President Guy Parmelin, with the participation of State Secretary for Economic Affairs Helene Budliger Artieda, along with a large number of officials and business leaders from both sides.

During the meeting, the conferees reviewed joint investment opportunities, discussed ways to strengthen economic cooperation between the two countries, and explored the development of partnerships in priority sectors in a manner that supports economic growth and enhances relations.

The meeting was held on the sidelines of the Swiss President’s official visit to the Kingdom, as the two countries mark 70 years of diplomatic relations that have, from the outset, helped lay the foundations of cooperation and build a partnership based on mutual respect and the development of shared interests between the two states.

After the meeting, an agreement was signed between the Saudi government and the Swiss Federal Council on the promotion and reciprocal protection of investments.

It was signed on the Saudi side by Al-Saif, and on the Swiss side by Parmelin.

The agreement aims to strengthen and stabilize the investment environment, protect investors’ rights, and support the flow of mutual investments between the two countries.

The meeting was attended by Saudi Ambassador to Switzerland and the Principality of Liechtenstein Abdulrahman Aldawood.

Business

US Stocks Dip on Mixed Earnings as Markets Monitor Iran

A trader works on the floor of the New York Stock Exchange (NYSE) at the opening bell in New York on March 24, 2026. (Photo by ANGELA WEISS / AFP)
A trader works on the floor of the New York Stock Exchange (NYSE) at the opening bell in New York on March 24, 2026. (Photo by ANGELA WEISS / AFP)
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US Stocks Dip on Mixed Earnings as Markets Monitor Iran

A trader works on the floor of the New York Stock Exchange (NYSE) at the opening bell in New York on March 24, 2026. (Photo by ANGELA WEISS / AFP)
A trader works on the floor of the New York Stock Exchange (NYSE) at the opening bell in New York on March 24, 2026. (Photo by ANGELA WEISS / AFP)

Wall Street stocks retreated from records early Thursday as markets digested a trove of mixed earnings reports and monitored the latest dynamics between the United States and Iran.

Analysts cited profit-taking after both the S&P 500 and Nasdaq shrugged off a jump in oil prices to finish at records on Wednesday.

About 10 minutes into trading, the Dow Jones Industrial Average was down 0.4 percent at 49,311.39, AFP reported.

The broad-based S&P 500 dipped 0.2 percent to 7,126.19, while the tech-rich Nasdaq Composite Index declined 0.3 percent to 24,588.07.

David Morrison, senior market analyst at FCA, called Thursday's early trading action "a mild bout of profit-taking triggered by some worrying reports of hostile action between the US and Iran," according to a note.

The US Defense Department said its forces boarded a vessel in the Indian Ocean that was transporting oil from Iran, while President Donald Trump announced on social media that he ordered the Navy to "shoot and kill" boats placing mines in the Strait of Hormuz.

Iran vowed it would keep the strait closed to all but a trickle of approved vessels for as long as the United States blockaded its ports.

Among companies reporting results, Tesla fell 1.7 percent and Lockheed Martin dropped 3.7 percent, while American Airlines jumped 4.9 percent.

Business

What Does the Inclusion of Saudi Bonds in the J.P. Morgan Index Mean?

Saudi woman walks at the Saudi stock market in Riyadh - Reuters
Saudi woman walks at the Saudi stock market in Riyadh - Reuters
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What Does the Inclusion of Saudi Bonds in the J.P. Morgan Index Mean?

Saudi woman walks at the Saudi stock market in Riyadh - Reuters
Saudi woman walks at the Saudi stock market in Riyadh - Reuters

Saudi Arabia’s debt market is set for a strategic shift in early 2027, following J.P. Morgan’s announcement that local-currency bonds will be included in its global emerging markets bond index. The move represents a vote of confidence in the Kingdom’s structural reforms and is expected to open the door to substantial capital inflows that will help finance major economic transformation projects.

In a note, J.P. Morgan said the move follows a series of reforms to improve foreign investor access and enhance local market capabilities.

The bank added that Saudi sukuk, Shariah-compliant debt instruments that function similarly to bonds, with a remaining maturity of up to 15 years, will be eligible for inclusion in the Government Bond Index-Emerging Markets (GBI-EM), the most widely tracked benchmark of its kind, with $233 billion in assets tracking it.

J.P. Morgan said eight sukuk issues would be eligible for inclusion, with a total value of $69 billion.

The Kingdom’s inclusion in the index is expected to boost liquidity and demand for sovereign debt, contributing to lower borrowing costs.

In September, J.P. Morgan had placed Saudi Arabia on “Positive Index Watch,” paving the way for its eventual inclusion in the GBI-EM.

Commenting on the decision, Saudi Finance Minister Mohammed Al-Jadaan told Bloomberg that the move reflects continued confidence in the Kingdom’s economic transformation trajectory. He said the inclusion marks a new milestone in Saudi Arabia’s integration into global financial markets, adding that its immediate impact will be seen in broadening and diversifying the investor base and supporting long-term capital inflows into the domestic debt market, thereby strengthening the resilience and stability of the national economy.

The Significance of the Index

The importance of J.P. Morgan’s index lies in its role as a benchmark guiding major global fund allocations, particularly passive funds that track indices automatically. With an expected weighting of around 2.52 percent, Saudi bonds will become a core component of international investor portfolios, increasing government bond liquidity and reducing borrowing costs over the long term, a critical factor for the Kingdom’s economy.

Passive funds play a key role in ensuring steady inflows. Trillions of dollars globally are managed through such funds. Once Saudi Arabia is included in the index, these funds will purchase Saudi bonds to remain aligned with it. Unlike active investors, they do not rapidly buy or sell based on daily news or market sentiment, but continue to hold bonds as long as they remain in the index, providing significant stability to the Saudi debt market. Their participation also ensures a constant base of large-scale buyers, facilitating bond trading at any time.

Reforms That Paved the Way

This inclusion is the result of a series of regulatory reforms highlighted by the bank in its note. Saudi Arabia has improved international investor access by linking to the global Euroclear system, expanding its network of primary dealers to include international banks, and facilitating cross-border settlement and trading. These measures have enhanced legal certainty and transparency, making the Saudi debt market an attractive and secure destination for foreign capital.

Financial Stability Amid Regional Challenges

Beyond its economic dimensions, the move carries strategic significance amid ongoing geopolitical tensions in the region. Increased inflows into local bonds are expected to strengthen the government’s ability to manage any economic fallout from regional instability. It underscores the resilience and attractiveness of the Saudi economy, demonstrating its capacity to attract quality investment and secure the financing needed for its development plans regardless of external challenges.