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Saudi Arabia: Private Sector Drives Housing Projects Worth Over $106 Billion

Al-Hogail meets with the private sector at the headquarters of the Federation of Saudi Chambers (Asharq Al-Awsat) 
Al-Hogail meets with the private sector at the headquarters of the Federation of Saudi Chambers (Asharq Al-Awsat) 
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Saudi Arabia: Private Sector Drives Housing Projects Worth Over $106 Billion

Al-Hogail meets with the private sector at the headquarters of the Federation of Saudi Chambers (Asharq Al-Awsat) 
Al-Hogail meets with the private sector at the headquarters of the Federation of Saudi Chambers (Asharq Al-Awsat) 

Saudi Arabia’s Minister of Municipalities and Rural Affairs and Housing, Majid Al-Hogail, announced that the value of housing projects executed in partnership with the private sector has exceeded SAR 400 billion ($106 billion), underscoring the sector’s growing role in supporting national development and business growth.

Speaking at a meeting with private-sector representatives at the Federation of Saudi Chambers in Riyadh on Monday, Al-Hogail highlighted the momentum of joint initiatives involving both private firms and the non-profit (third) sector across municipal and housing domains.

He noted that more than 14,000 investment opportunities have been introduced through the Forsah platform, reflecting the program’s contribution to advancing multiple national targets under Vision 2030.

The minister emphasized that the ministry places great importance on strengthening partnerships with private and non-profit entities, whether through investment platforms, housing development projects, or initiatives led by civil society organizations. Such collaborations, he said, are central to improving housing options, stimulating economic activity, and ensuring sustainable urban growth.

Al-Hogail also underlined the real estate sector’s importance as a driver of the national economy, now accounting for about 13.5 percent of Saudi Arabia’s GDP. He added that the ministry’s regulatory role must rest on clear and precise legislation.

Over the past three years, the ministry has worked closely with business stakeholders to shape regulations that promote inclusivity, prevent monopolistic practices, and protect the interests of small and medium-sized enterprises.

Acknowledging the diverse economic conditions across Saudi cities, Al-Hogail explained that this variation is reflected in the structure of fees and penalties. The ministry’s current approach, he noted, emphasizes encouraging compliance rather than relying solely on oversight and enforcement.

He concluded by reaffirming that the ministry’s doors remain open to the private sector and chambers of commerce. He called for greater future engagement, urging companies and institutions to share their expertise and resources to help strike a balance in regulatory development. He said that such collaboration will strengthen the Kingdom’s housing and urban development strategies, further supporting its broader economic transformation goals.

 

 

 

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Saudi Crown Prince’s Directives Cut Riyadh Property Prices by 3%

A general view of Riyadh, Saudi Arabia. (SPA)
A general view of Riyadh, Saudi Arabia. (SPA)
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Saudi Crown Prince’s Directives Cut Riyadh Property Prices by 3%

A general view of Riyadh, Saudi Arabia. (SPA)
A general view of Riyadh, Saudi Arabia. (SPA)

Real estate prices in Saudi Arabia’s capital fell 3% in the final quarter of last year, reversing a 1% rise in the previous quarter, in a shift that highlights the on-the-ground impact of policy moves ordered by Prince Mohammed bin Salman bin Abdulaziz, Crown Prince and Prime Minister, to rein in soaring property costs across the Kingdom, particularly in Riyadh.

According to an index issued by the General Authority for Statistics on Tuesday, the real estate price index in Saudi Arabia fell 0.7% in the fourth quarter of last year compared with the same period of 2024.

The decline was driven mainly by weaker performance in the residential sector, which carries the most significant weight in the index, as its annual rate of change fell 2.2%.

The commercial sector continued to see a slight slowdown in growth momentum, while maintaining positive annual growth of 3.6%.

A real balance

Real estate specialists told Asharq Al-Awsat that the Crown Prince’s directives have become evident on the ground after property prices in Riyadh surged to unprecedented levels, prompting government intervention to curb the increases and enable citizens to own their first homes without excessive financial burdens.

Real estate analyst Khaled Al-Mobid said the 0.7 % decline in the real estate price index in the fourth quarter of 2025 reflects the market’s entry into a phase of real balance after years of rapid price increases, describing it as a healthy indicator that supports, rather than weakens, market sustainability.

“What we are witnessing today is not a loss in value, but a logical price correction, particularly in the residential sector, due to increased supply, improved regulation, and greater awareness among market participants, whether buyers or investors,” Al-Mobid told Asharq Al-Awsat.

He added that this balance creates better opportunities for end users, redirects investment toward appropriate products at fair prices, and curbs short-term speculation, serving the real estate economy over the medium and long term.

Housing stability

Real estate specialist Ahmed Omar Basudan told Asharq Al-Awsat that the sector has seen declines in many regions of the Kingdom, as buyers await the effects of government decisions issued under the Crown Prince’s direction.

He cited recent measures, including the announcement of the names of beneficiaries of subsidized land grants in northern Riyadh, located in some of the area’s best neighborhoods.

Basudan said the decision to fix residential rental prices in Riyadh for five years also contributed to the decline in the capital’s real estate market, as tenants are experiencing a period of housing stability, reducing demand for purchases at this stage.

He added that recent amendments to fees on undeveloped land and vacant properties, which have been implemented and are now being collected, also played a role, prompting landowners to move quickly to sell some plots at competitive prices to avoid bearing those fees.

Data from the General Authority for Statistics showed that residential real estate prices fell in the fourth quarter of last year compared with the same quarter of 2024, with the sector declining 2.2%. The drop was driven by a 2.4% fall in residential land prices, a 2.5% decline in apartment prices, a 1.3% decrease in villa prices, and a 0.2% drop in residential floor prices.

Quarterly comparison

The real estate price index fell 0.4% in the fourth quarter of last year, at a slower pace than in the third quarter.

The index was affected by a 0.4% decline in the residential sector, driven by a 0.7% drop in residential land prices, a 0.4% fall in apartment prices, and a 0.2% decrease in residential floor prices, while villa prices rose 0.8%.

At the regional level, the annual real estate price index fell 0.7% nationwide in the fourth quarter of last year, with Riyadh recording a 3% decline, compared with a 1% increase in the third quarter.

The Eastern Province posted the highest real estate price increase at 4%, followed by Makkah at 2.5%, Tabuk and Jazan at 1.1% each, and Al-Jawf at 0.4%.

By contrast, Hail, the Northern Borders region, and Madinah recorded the steepest declines, at 8.9%, 6.8%, and 6.1%, respectively.

Business

Saudi Industry Minister Meets with Global Leaders at World Economic Forum to Advance Partnerships

Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef held a series of high-level meetings with government officials and global business leaders at the World Economic Forum. (SPA)
Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef held a series of high-level meetings with government officials and global business leaders at the World Economic Forum. (SPA)
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Saudi Industry Minister Meets with Global Leaders at World Economic Forum to Advance Partnerships

Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef held a series of high-level meetings with government officials and global business leaders at the World Economic Forum. (SPA)
Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef held a series of high-level meetings with government officials and global business leaders at the World Economic Forum. (SPA)

Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef held on Tuesday a series of high-level meetings with government officials and global business leaders on the sidelines of the Kingdom's participation in the 2026 World Economic Forum in Davos.

As part of the Saudi delegation, Alkhorayef participated in a meeting with Swiss President Guy Parmelin. The meeting reviewed the robust strategic partnership between their nations and explored avenues to deepen cooperation in the industrial and mining sectors, aiming to expand bilateral ties to serve mutual interests.

Alkhorayef met with CEO of BlackRock Larry Fink, and President and CEO of the World Economic Forum Børge Brende. Talks focused on boosting the partnership between the Kingdom and the forum, exploring new cooperation in advanced manufacturing and critical minerals, and strengthening joint efforts to fortify industrial and mining supply chains.

In a series of bilateral meetings, Alkhorayef met with leaders of major global firms, including CEO of Capgemini Aiman Ezzat, Senior Partner at Bain & Company Dr. Jörg Gnamm, and CEO of Copa-Data Stefan Reuther. The meetings focused on unlocking opportunities for collaboration in advanced manufacturing, digital solutions, industrial automation, and smart systems. The officials emphasized leveraging global consulting expertise to boost factory efficiency, accelerate the Kingdom's industrial transformation, and bolster the competitiveness of its industrial and mining sectors.

Business

Saudi-US Trade and Investment Council Meetings Kick Off in Riyadh

Chaired by the GAFT, the Saudi-US Trade and Investment Council aims to strengthen economic cooperation between the two countries by reviewing trade and investment policies, addressing barriers, and supporting technical dialogue among relevant entities. (SPA)
Chaired by the GAFT, the Saudi-US Trade and Investment Council aims to strengthen economic cooperation between the two countries by reviewing trade and investment policies, addressing barriers, and supporting technical dialogue among relevant entities. (SPA)
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Saudi-US Trade and Investment Council Meetings Kick Off in Riyadh

Chaired by the GAFT, the Saudi-US Trade and Investment Council aims to strengthen economic cooperation between the two countries by reviewing trade and investment policies, addressing barriers, and supporting technical dialogue among relevant entities. (SPA)
Chaired by the GAFT, the Saudi-US Trade and Investment Council aims to strengthen economic cooperation between the two countries by reviewing trade and investment policies, addressing barriers, and supporting technical dialogue among relevant entities. (SPA)

Technical team meetings of the Saudi-US Trade and Investment Council (TIFA) kicked off in Riyadh on Tuesday.

Held under the theme “A Platform for Dialogue, Partnership, and Economic Growth,” the meetings were attended by Deputy Governor of the General Authority of Foreign Trade (GAFT) for International Relations Abdulaziz Alsakran, Assistant United States Trade Representative for Europe and the Middle East Bryant Trick, with the participation of 20 entities from both sides.

Chaired by the GAFT, the Saudi-US Trade and Investment Council aims to strengthen economic cooperation between the two countries by reviewing trade and investment policies, addressing barriers, and supporting technical dialogue among relevant entities.

The council focuses on five main objectives: developing trade and investment policies; facilitating trade and addressing technical and regulatory barriers; supporting cooperation on sanitary and phytosanitary measures and agricultural products; enhancing intellectual property protection; and advancing digital trade, innovation, and emerging technologies.

Saudi government entities participating in the council work to develop initiatives and activities that help elevate cooperation between the two countries and achieve its objectives, serving mutual interests.

Over the past ten years, trade exchange between Saudi Arabia and the United States has reached $500 billion, making the United States the Kingdom’s second-largest import partner. Trade exchange since 2020 has recorded a growth rate exceeding 50%, reflecting the depth and strength of economic relations between the two countries.