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Real Estate Balance Platform Regulates Market, Signals Positive Momentum in Riyadh Trading

The Saudi capital, Riyadh (Asharq Al-Awsat) 
The Saudi capital, Riyadh (Asharq Al-Awsat) 
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Real Estate Balance Platform Regulates Market, Signals Positive Momentum in Riyadh Trading

The Saudi capital, Riyadh (Asharq Al-Awsat) 
The Saudi capital, Riyadh (Asharq Al-Awsat) 

Following the Royal Commission for Riyadh City’ s announcement of the results of the electronic draw for purchasing residential land through the Real Estate Balance platform, Asharq Al-Awsat learned that some of the plots allocated to eligible beneficiaries will be sold at prices below SAR 1,500 (about $400) per square meter, depending on their locations.

The land distribution comes in implementation of directives issued by Crown Prince and Prime Minister Mohammed bin Salman to take the necessary steps to restore balance to Riyadh’s real estate sector.

Under these directives, the Royal Commission for Riyadh City is tasked with providing planned and developed residential land for citizens at a rate of between 10,000 and 40,000 plots annually over the next five years, at prices not exceeding SAR 1,500 per square meter.

On Wednesday, the Commission announced the issuance of the electronic draw results after completing all procedures related to verifying applicants’ eligibility and reviewing objections submitted ahead of the draw.

Competitive Prices

Real estate specialists told Asharq Al-Awsat that the Commission has allocated large tracts of land for sale to eligible beneficiaries in key locations within Riyadh’s urban fabric, noting that the move offers more choices at competitive prices and reflects positively on the overall real estate market in the Saudi capital.

They added that beneficiaries will be able to build homes at costs comparable to the prices of apartments currently offered for sale in northern Riyadh neighborhoods, which proved that the directives of Crown Prince Mohammed bin Salman have translated into tangible outcomes, enabling citizens to obtain their first homes at lower prices.

Price Decline

Real estate specialist Khaled Al-Mobid said that offering more than 6.3 million square meters of land this year through the Real Estate Balance platform aims to inject additional land within the urban area and increase housing supply with high planning quality. He described the step as important in curbing prices, which have risen recently in Riyadh.

He added that the rollout of further land areas through the platform over the next four years will help meet demand from young people and low-income segments, making affordable housing more accessible and facilitating first-home ownership.

Al-Mobid expected the Riyadh real estate market to see a correction in the coming years as the measures directed by the Crown Prince and Prime Minister are fully implemented by the relevant authorities.

Construction Costs

Another real estate specialist, Ahmed Omar Basodan, said that based on the announced locations for beneficiaries of the first batch, recipients will be able to own villas at prices lower than apartments currently offered for sale in the same neighborhoods. He explained that preliminary estimates put the combined cost of land purchase and construction at between SAR 900,000 and SAR 1.2 million.

He added that setting a ceiling price of SAR 1,500 per square meter for land will put downward pressure on prices in those areas, forcing them to retreat and become more affordable. Basodan noted that more than 10,000 plots have been allocated this year through the platform, supporting expanded housing supply, market stability, and improved quality of life.

Electronic Draw

In its latest statement, the Royal Commission for Riyadh City said the electronic draw was conducted under the supervision of an independent committee representing the Royal Commission, the Ministry of Justice, the General Real Estate Authority, Riyadh Municipality, and the Saudi Data and Artificial Intelligence Authority (SDAIA), using advanced technological systems to ensure fairness and equal opportunity.

The Commission confirmed that the final results are now available on the Real Estate Balance platform, detailing the locations of allocated plots totaling 6.3 million square meters across several Riyadh neighborhoods, including Al-Qirawan, Al-Malqa, Al-Nakheel, Al-Nargis, Namar, Al-Rimayah, Al-Rimal, and Al-Janadriyah.

 

 

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Business

Saudi Arabia's Mutlaq Al-Ghowairi Contracting Sets IPO Price Range at $2.9-$3.3 per Share

Photo showing one of Mutlaq Al-Ghowairi Contracting Co.'s projects. (Company website)
Photo showing one of Mutlaq Al-Ghowairi Contracting Co.'s projects. (Company website)
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Saudi Arabia's Mutlaq Al-Ghowairi Contracting Sets IPO Price Range at $2.9-$3.3 per Share

Photo showing one of Mutlaq Al-Ghowairi Contracting Co.'s projects. (Company website)
Photo showing one of Mutlaq Al-Ghowairi Contracting Co.'s projects. (Company website)

Saudi Arabia's Mutlaq Al-Ghowairi Contracting Co. has set the price range for its initial public offering (IPO) at between 11 riyals ($2.9) and 12.5 riyals ($3.3) per share, and began the institutional book-building period ahead of a planned offering of 30 percent of its shares on the Saudi Exchange.

Al Rajhi Capital, acting as lead manager, financial adviser, bookrunner and underwriter, alongside Morgan Stanley Saudi Arabia as financial adviser, bookrunner and underwriter, said the offering consists of 240 million ordinary shares in Mutlaq Al-Ghowairi Contracting Co., representing 30 percent of the company's share capital.

According to a filing on the Saudi Exchange (Tadawul), the book-building period for participating institutions began on Sunday, May 31, 2026, and will continue until 3:00 p.m. Saudi time on Thursday, June 4, 2026.

The minimum subscription size for participating institutions is 25,000 shares, while the maximum is 39.99 million shares. Participation in the book-building process is limited to eligible investors in accordance with the Capital Market Authority's rules governing institutional book-building and share allocation in initial public offerings.

The final offer price will be determined after the completion of the book-building process, to be followed by the retail subscription period. The company has initially allocated all 240 million offered shares to participating institutions, representing 100 percent of the total offering.

The filing added that if there is sufficient demand from retail investors, the institutional bookrunners, in coordination with the company, may reduce the allocation to participating institutions to a minimum of 168 million shares, representing 70 percent of the total shares on offer.

Business

Saudi Market Closes Up 0.5%, Kingdom Holding Shares Jump 10%

A man monitors stock movements on the Saudi stock market. (AFP)
A man monitors stock movements on the Saudi stock market. (AFP)
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Saudi Market Closes Up 0.5%, Kingdom Holding Shares Jump 10%

A man monitors stock movements on the Saudi stock market. (AFP)
A man monitors stock movements on the Saudi stock market. (AFP)

Saudi Arabia's benchmark stock index (TASI) ended its first trading session following the Eid al-Adha holiday up 0.5 percent at 11,078 points, with total turnover reaching about 4 billion riyals.

The index touched a session high of 11,080 points and a low of 11,032 points.

Shares of Kingdom Holding led the gainers, surging 10 percent to 13.58 riyals. The stock has gained about 27 percent over the past three sessions, marking its highest closing level since 2016.

The company recently disclosed its combined stake with the Private Office of Prince Alwaleed bin Talal in SpaceX, amounting to 0.63 percent. Based on the company's expected valuation at a potential public offering, the stake is estimated to be worth between $8.32 billion and $10.55 billion.

Al Rajhi Bank shares rose 1 percent to 67.25 riyals.

Shares of Ma'aden, ACWA Power, Riyad Bank, Dr. Sulaiman Al Habib Medical Services Group, Elm, Masar, and Saudi Awwal Bank (SAB) closed higher, posting gains ranging from 1 percent to 4 percent.

Meanwhile, shares of Al Shamel Masar, Saudi Industrial Development Co. (SIDC), Electrical Industries Co., and Dar Al Arkan advanced between 6 percent and 10 percent.

Business

Saudi National Housing Company... From an 'Executive Arm' to the Largest Real Estate Developer in the Region

NHC Chief Executive Mohammed Albuty speaks during a panel discussion (company website)
NHC Chief Executive Mohammed Albuty speaks during a panel discussion (company website)
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Saudi National Housing Company... From an 'Executive Arm' to the Largest Real Estate Developer in the Region

NHC Chief Executive Mohammed Albuty speaks during a panel discussion (company website)
NHC Chief Executive Mohammed Albuty speaks during a panel discussion (company website)

Saudi Arabia’s National Housing Company (NHC) has emerged as a central force in reshaping the Kingdom’s housing market, evolving from a state-backed developer into a key engine of Crown Prince Mohammed bin Salman’s economic reform agenda under Vision 2030.

Far from being a conventional real estate company, NHC today manages residential suburbs and assets accounting for around 20 percent of total real estate product sales in Saudi Arabia, underscoring its growing influence in one of the region’s largest property markets.

Since its launch in 2016, the company has positioned itself at the center of the Kingdom’s housing transformation, helping drive the Housing Program, one of Vision 2030’s flagship initiatives aimed at raising Saudi homeownership to 70 percent by the end of the decade.

NHC Chief Executive Mohammed Albuty said the company had played a pivotal role in restructuring the sector to ensure long-term sustainability beyond direct state financing. He pointed to the 2025 Vision 2030 annual report, which showed Saudi homeownership rising to 66.24 percent, surpassing the government’s interim target of 65 percent for 2025.

NHC was established by royal decree in 2016 as the investment and development arm of what is now the Ministry of Municipalities and Housing. Its creation marked the beginning of a new “national developer” model designed to manage housing assets and projects with greater efficiency and flexibility.

A major turning point came in 2020, when another royal order transferred the company’s ownership to the state, elevating it from a supporting entity to a market leader. The move enabled NHC to launch some of the region’s largest residential suburbs, shifting from managing limited housing complexes to developing integrated cities covering more than 160 million square meters.

The company has also sought to curb construction costs through its digital procurement platform, Supply Pro, which links developers directly with manufacturers and suppliers. The platform currently offers more than 1,500 products from 129 factories and 45 suppliers, helping reduce development costs by around 20 percent.

Speaking at the Real Estate Supply Chain Forum, Albuty said NHC had boosted local content in its projects through supply chain localization agreements and industrial partnerships worth more than SAR 21 billion ($5.6 billion). The deals included SAR 8 billion in supply chain service agreements, SAR 5 billion in industrial localization initiatives and 15 supply contracts worth more than SAR 8 billion.

Maan Alothimeen, NHC’s general manager for supply chains and business support, said Supply Pro had handled transactions exceeding SAR 2 billion over the past two years, with Saudi factories and small- and medium-sized enterprises accounting for 95 percent of the activity.

NHC has also become a platform for local developers, helping transform smaller firms into major players capable of managing billion-riyal projects. By offering investment opportunities in residential and commercial real estate, as well as in the operation of health, education and leisure facilities, the company has encouraged broader private-sector participation.

The strategy has contributed to the delivery of more than 300,000 housing units. The financial stability provided by NHC has also enabled emerging Saudi developers to grow into large companies managing projects valued at more than SAR 263 billion ($70 billion), strengthening the competitiveness of the Saudi property market.

As part of efforts to deepen local industrial participation, NHC signed a memorandum of understanding with the Local Content and Government Procurement Authority to turn its suburban developments into permanent showcases for Saudi-made products, a move expected to generate thousands of jobs in manufacturing and logistics.

Saudi Minister of Municipalities and Housing Majed Al-Hogail said mortgage financing had become a cornerstone of the Kingdom’s real estate expansion. He noted that the value of Saudi mortgage financing had surged from around SAR 200 billion ($53.3 billion) to more than SAR 900 billion ($240 billion) by the end of 2025, representing 27 percent of total Saudi banking portfolios.

Al-Hogail added that the Saudi Real Estate Refinance Co. (SRC) had issued sukuk in the London market to strengthen liquidity links between domestic and international financial markets and secure sustainable funding flows for the housing sector.

In remarks to Asharq Al-Awsat, Khaled Al-Mobid, chief executive of Menassat Real Estate Co., said NHC had become a key implementation arm of Saudi housing policy by increasing the supply of planned residential units, helping stabilize prices in the market.

He noted that the company’s most significant shift had been its evolution from a traditional developer into an “enabler” for private firms. Through the provision of serviced land and infrastructure, NHC allowed smaller developers to participate in large-scale projects and gain operational expertise, contributing to a more mature and professional real estate industry.

Al-Mobid added that NHC’s role extended beyond construction to balancing the housing market itself. By increasing organized housing supply and lowering development costs through economies of scale, the company was helping ease pressure on citizens and improve affordability.

He also said NHC’s partnership-driven model reduced reliance on direct government spending while encouraging private capital inflows and spreading investment risk, supporting the creation of a more financially sustainable housing sector.

As Saudi Arabia moves closer to achieving its Vision 2030 housing targets, NHC’s significance now goes beyond building homes. The company has become a model for a more diversified real estate economy led by private-sector investment and local industry, positioning housing as a driver of broader economic stability and growth.