A Year After Crown Prince’s Decisions, Riyadh Real Estate Exits Speculation, Transaction Values Down 64%

File photo of Saudi Arabia's capital Riyadh - SPA
File photo of Saudi Arabia's capital Riyadh - SPA
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A Year After Crown Prince’s Decisions, Riyadh Real Estate Exits Speculation, Transaction Values Down 64%

File photo of Saudi Arabia's capital Riyadh - SPA
File photo of Saudi Arabia's capital Riyadh - SPA

One year after a package of landmark decisions issued by Crown Prince Mohammed bin Salman on March 29, 2025 to rebalance Riyadh’s real estate market, a new trajectory is taking hold across the capital, particularly in its northern districts.

Data from the Real Estate Exchange showed a clear retreat in speculative activity that had strained the market for years, with transaction values recording a sharp 64% decline, marking the start of a “major correction” toward a more a sustainable real estate model that places the needs of citizens and genuine developers at the center of the market.

The Crown Prince’s directives outlined a new path for the market through a set of key executive measures, including lifting restrictions on millions of square meters in northern Riyadh, activating fees on vacant land to boost housing supply, freezing rent increases, and regulating contractual relations between landlords and tenants. These steps have contributed directly to stabilizing housing costs and curbing unjustified price surges seen in recent years.

The impact of these structural reforms was reflected in data from the Real Estate Exchange affiliated with the Ministry of Justice, which showed a 64% drop in transaction values. Transactions stood at around 53,000 deals worth more than $17.3 billion (65 billion riyals), compared with approximately $48.3 billion (181 billion riyals) in the year preceding the decisions. Total traded land area also declined to 153,000 square meters from 228,000 square meters, which experts attribute to a shift in liquidity from large-scale land speculation to organized residential development projects.

Reshaping the real estate market

Real estate specialists told Asharq Al-Awsat that these measures have reshaped Riyadh’s property market toward a more sustainable model driven by real development and genuine housing demand, guiding it toward greater balance, maturity, price stability, and closer alignment between real estate products and actual market needs. They added that this transformation represents a significant step toward building a more sustainable market capable of keeping pace with the Kingdom’s economic changes.

Real estate expert and marketer Saqr Al-Zahrani told Asharq Al-Awsat that the impact of these decisions has led to a clear structural shift in the market. He said the decline in transaction values does not reflect weak activity as much as it reflects a retreat in speculative practices that had pushed prices beyond levels linked to real housing demand.

He added that the balancing measures helped establish a new pricing benchmark for residential land, particularly with the offering of supported land at around 1,500 riyals per square meter, which has reset price expectations in several districts and curbed unjustified increases seen in recent years.

He noted that undeveloped land in northern Riyadh has experienced what he described as a “free fall” in prices, according to market reports, with some locations seeing significant declines after years of rapid increases fueled by speculation and growth expectations. He said this decline is viewed as part of a natural correction process that re-prices land based on more realistic criteria tied to development value and actual housing demand.

From speculation to development

Al-Zahrani said that over the past year, several key trends have emerged, most notably a shift in liquidity from speculation toward real estate development, with greater focus on structured development projects instead of trading undeveloped land. He added that the genuine homebuyer has re-emerged as the main driver of the market following a decline in short-term investors.

He also said early off-plan sales projects have begun to emerge, both in housing units and developed land, a model expected to expand in the coming period as it helps increase housing supply and reduce ownership costs. The market is also awaiting new regulations, particularly fees on vacant properties, which are expected to bring idle assets into use and improve the efficiency of real estate stock within cities.

Al-Zahrani said the Riyadh real estate market is likely to move toward a more mature and sustainable phase, with expected growth in off-plan projects and increased supply driven by continued regulatory reforms, which could lead to price stability and a better balance between supply and demand.

He added that current market conditions do not reflect a slowdown as much as a restructuring phase toward a more sustainable model based on real development and genuine housing demand, supporting urban development goals and enhancing quality of life in the capital.

Market behavior

For his part, real estate expert and marketer Abdullah Al-Mousa told Asharq Al-Awsat that Riyadh’s real estate market has entered a pivotal stage in its economic cycle. He said the changes seen over the past year cannot be explained solely by transaction volumes or values, but must be understood within a broader context of reshaping market behavior and recalibrating the relationship between supply and demand.

He added that in the years preceding these decisions, the market saw rapid price increases driven by several factors, including rising demand, accelerated urban growth, and the entry of various investment segments. Over time, rebalancing became necessary to ensure market sustainability and limit unjustified price increases.

Al-Mousa said the decline in transactions over the past year can be seen as a natural reflection of a recalibration phase, during which buyers tend to pause and reassess investment decisions, while developers and owners review pricing and marketing strategies in line with new conditions.

He noted that one of the most prominent features of this period has been increased awareness among market participants, with purchasing decisions becoming more closely tied to value and economic feasibility rather than short-term price expectations. Some real estate companies have also begun restructuring their sales and marketing models, including offering longer payment plans and redesigning products to better match market needs.

The expert said this phase has contributed to reducing speculative activity that previously influenced price movements in some areas, encouraging a stronger shift toward actual land development rather than holding land as idle assets awaiting price increases.

He added that what is happening in Riyadh’s real estate market today does not represent a downturn but a transitional phase reshaping market rules- from one driven by price speculation to a more mature and stable market based on real asset value and long-term development efficiency. This, he said, marks an important step toward building a more sustainable market aligned with the Kingdom’s economic transformation.

Al-Mousa concluded that the Riyadh real estate market is expected to continue on a more balanced and mature path in the coming period, with competition increasingly tied to product quality, development efficiency, and alignment with actual market needs, alongside ongoing major projects that will keep the sector a key driver of economic growth.



Saudi Arabia Tightens IPO Rules, Requires Underwriters to Purchase All Offered Shares

The Capital Market Authority building in Riyadh, Saudi Arabia (Asharq Al-Awsat)
The Capital Market Authority building in Riyadh, Saudi Arabia (Asharq Al-Awsat)
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Saudi Arabia Tightens IPO Rules, Requires Underwriters to Purchase All Offered Shares

The Capital Market Authority building in Riyadh, Saudi Arabia (Asharq Al-Awsat)
The Capital Market Authority building in Riyadh, Saudi Arabia (Asharq Al-Awsat)

Saudi Arabia's Capital Market Authority (CMA) has approved new regulatory provisions aimed at improving initial public offering (IPO) practices, tightening book-building requirements, strengthening underwriters' responsibilities and requiring companies to disclose forward-looking financial projections.

The measures are designed to improve the efficiency of IPOs and enhance the reliability of information available to investors.

Under the new provisions, underwriting agreements must be signed and become effective before the book-building process begins. Underwriters' commitment to purchase all shares offered must also take effect at the start of the process, reinforcing their responsibility to cover the offering even when investor demand is insufficient.

This means that an underwriter, typically an investment bank responsible for arranging and marketing an offering, will no longer be limited to managing the process and attracting investors. Instead, it will be obligated to purchase all shares offered in accordance with the underwriting agreement.

The CMA also clarified that if an underwriter's acquisition of the offered shares results in a breach of the listing requirements stipulated in the Listing Rules, the issuer's shares will not be listed. The underwriter will nevertheless remain obligated to purchase all offered shares, while the underwriting agreement may include a mechanism for disposing of those shares.

Measures to Prevent Inflated Subscription Orders

As part of the book-building process, the CMA introduced additional requirements to verify that orders submitted by participating investment institutions reflect their actual available liquidity, limiting financial solvency assessments to cash and cash equivalents.

The authority also stipulated that orders must constitute binding payment commitments, with payment due no later than the subscription payment deadline specified in the prospectus.

These requirements aim to curb orders that exceed investors' actual financial capacity. Large orders may indicate strong demand for an offering, but they do not necessarily reflect available liquidity or a genuine ability to pay.

The measures are expected to improve the credibility of reported subscription coverage levels by aligning them more closely with actual demand for the offered shares, supporting more efficient pricing and more accurate assessments of investor appetite.

Mandatory Disclosure of Financial Projections

The amendments also strengthen disclosure requirements by obligating issuers to include forward-looking financial projections in their prospectuses and registration documents.

These projections must include financial performance indicators covering the period following the most recently reported financial period and at least the subsequent fiscal year.

The CMA stipulated that projections must be clear, not misleading, and based on reasonable and measurable assumptions. Issuers must also disclose the methodology used to prepare them, along with material assumptions, risks and factors that could affect their realization.

These requirements will give investors insight into companies' expectations for future financial performance rather than requiring them to rely exclusively on historical results when evaluating whether to subscribe to an IPO.

The provisions also emphasize that forward-looking projections do not guarantee that the stated results will be achieved.

The CMA has further strengthened the responsibilities of financial advisers by requiring them to exercise appropriate professional due diligence when advising issuers on their financial projections and to form a reasonable opinion on those projections.

This is intended to increase professional scrutiny of information provided to investors.

Enhancing IPO Market Efficiency

The CMA published the draft regulatory provisions on September 22, 2026, through the Istitlaa public consultation platform and its website for a 30-calendar-day consultation period to gather feedback from the public and government entities.

The approved provisions will take effect on the date of their publication.


Aramco Confronts Repercussions of War with Emergency System as Markets Await Its Results

Pipelines in the Saudi desert. (Aramco)
Pipelines in the Saudi desert. (Aramco)
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Aramco Confronts Repercussions of War with Emergency System as Markets Await Its Results

Pipelines in the Saudi desert. (Aramco)
Pipelines in the Saudi desert. (Aramco)

As markets anticipate Saudi Aramco's announcement of its financial results for the third quarter of 2026 on Tuesday, the repercussions of the US–Israel war on Iran stand out as one of the most prominent factors testing the company's ability to maintain its operations and the flow of its supplies to global markets.

Despite attacks that struck oil facilities and disruptions to shipping traffic through the Strait of Hormuz since the outbreak of the war on February 28, the company continued to rely on a system of infrastructure and operational alternatives developed over decades. These measures included pipelines, alternative export outlets, and international inventories, alongside accelerating repairs to damaged facilities and sourcing maintenance requirements locally.

Chief among these alternatives is the East–West pipeline, which transports crude oil from the Eastern Region to the port of Yanbu on the Red Sea, bypassing the Strait of Hormuz and providing an export outlet when navigation through the strait is disrupted.

The importance of this route stems from advance planning to diversify export outlets. This was underscored by Saudi Minister of Energy Prince Abdulaziz bin Salman at the International Petroleum Conference in October 2026, when he stressed the need for providing alternatives before crises occur, pointing to the role of strategic infrastructure in boosting the security of energy supplies.

In parallel with these alternatives, Aramco bolstered its measures to manage attacks and disruptions by accelerating the repair of damaged facilities, securing maintenance materials and spare parts locally, and utilizing crude inventories both inside and outside the Kingdom. The company is also studying additional options to transport oil away from maritime corridors that are vulnerable to disruption.

Saudi Minister of Energy Prince Abdulaziz bin Salman at the International Petroleum Conference in October 2026. (SPA)

These measures take on particular significance in light of the repercussions of the war that broke out on February 28, which extended to oil facilities in the Gulf, coinciding with the disruption of shipping traffic through the Strait of Hormuz and escalating concerns over the continuity of supplies to global markets.

Aramco's facilities were among those targeted by the attacks. Two days after the outbreak of the war, the Ras Tanura refinery was targeted by two drones that were intercepted. Their debris caused a limited fire and minor damage, without affecting the supply of petroleum products to the domestic market.

In confronting these risks, the company focused on accelerating damage repair and restoring operations, while ensuring the continuous flow of oil to global markets.

Aramco's President and CEO Amin Nasser revealed aspects of these preparations in a Reuters interview published on October 15. The measures included utilizing drones to assess damage, securing repair materials, and deploying specialized teams to handle multiple incidents simultaneously.

Response teams and repair inventories

Aramco has bolstered its incident response capabilities and accelerated the repair of damaged facilities through an emergency system that includes specialized teams, inventories of repair materials and spare parts, and tools to assess damage and determine technical requirements.

Nasser explained that Aramco developed specialized rapid-response teams following the 2019 attacks targeting the Abqaiq oil processing facility, and has since worked to boost its readiness to handle incidents, including simultaneous ones.

According to Nasser, the company produces locally or maintains in its warehouses approximately 90 percent of the materials required for repairs, which reduces reliance on imports and speeds up the restoration of operations.

Nasser said Aramco's response speed is more than six times the industry average, allowing damaged facilities to resume operations within days in many cases.

The emergency system is not limited to facility repairs, but also encompasses business continuity plans, the utilization of domestic and international inventories, and multiple routes for transporting and exporting crude oil, which helps the company maintain supplies despite production and shipping disruptions.

Aramco's President and CEO Amin Nasser at a petroleum conference in Riyadh. (Asharq Al-Awsat)

Restoring the capacity of the East–West Pipeline

With growing reliance on the East–West pipeline to bypass shipping disruptions through the Strait of Hormuz, its role has emerged as a primary corridor for transporting oil from the Eastern Region to the port of Yanbu on the Red Sea, and from there to global markets.

However, this route was not immune to the repercussions of the war; one of its pumping stations was attacked in April, which reduced flows by around 700,000 barrels per day. On April 12, the Ministry of Energy announced the restoration of the pipeline's full operational capacity, which stands at around seven million barrels per day.

The concept of establishing the pipeline dates back to the early 1980s during the Iraq–Iran War, when Saudi Arabia, under the directives of King Fahd bin Abdulaziz, decided to diversify its oil export outlets in anticipation of shipping disruptions in the Gulf. In 1995, its capacity was raised to around five million barrels per day, as reviewed by Energy Minister Prince Abdulaziz bin Salman during the International Petroleum Conference in October 2026.

Infrastructure readiness

On April 9, the Ministry of Energy announced that the targeting of a pumping station reduced pipeline flows by some 700,000 barrels per day, while subsequent attacks also impacted production at the Manifa and Khurais fields. Just three days later, the Ministry confirmed the restoration of full pumping capacity on the East-West pipeline and the recovery of affected production at the Manifa field, with work ongoing at the Khurais field.

In September, the pipeline was preemptively shut down to verify its safety following a new attack. On October 6, the Minister of Energy said operations had resumed within five to six days, with flows reaching around 5.8 million barrels per day, compared to its maximum capacity of seven million barrels per day.

These developments reflect the importance of rapidly repairing pumping stations and restoring operations at a time of increased reliance on export routes via the Red Sea to compensate for shipping disruptions in the Strait of Hormuz.

An integrated system

In its announcement of first-quarter results for 2026, Aramco said that it had activated business continuity plans to manage the repercussions of the war. The company utilized the East–West pipeline along with domestic and international storage capacities, in addition to leveraging the diversity of its assets and infrastructure.

In a speech delivered in London on October 5, Nasser stated that the company's resilience also relies on global strategic inventories, spare production capacity, multiple grades of crude, domestic gas inventories, and the Bahri tanker fleet. Facility preparations also encompass backup equipment and the segregation of critical utilities to limit the impact of disruptions.

Storage facilities at Ras Tanura. (Aramco)

Additional export options

Alongside boosting the efficiency of existing infrastructure, Aramco is studying additional options to transport oil to global markets, aiming to reduce reliance on maritime corridors vulnerable to disruption.

Nasser stated that the company is exploring alternative routes without disclosing their details, explaining that they will be announced once a final decision is reached.

This coincides with a Saudi push to expand oil transport capacity through pipelines. In statements made in October, the Minister of Energy spoke of a target to increase the capacity of oil export pipeline routes to ten million barrels per day, as part of ongoing efforts to bolster supply security.

Diversifying crude transport options enables the rerouting of exports when certain pathways are disrupted and mitigates dependence on vital maritime checkpoints, while expanding the pipeline network introduces an additional layer of readiness to counter supply disruptions.

Overseas inventories

Supply management options during crises are not limited to altering transport routes. Storing crude oil outside the Kingdom allows volumes to be held close to consumer markets, providing greater flexibility in meeting customer needs when shipping lanes are disrupted or tanker arrivals are delayed. Saudi Aramco is actively seeking to expand these options, with its latest step coming via an initial understanding with Singapore.

On October 26, Saudi Arabia and Singapore announced an initial understanding to store Saudi crude oil in the Jurong Rock Caverns on Singapore's Jurong Island.

The facility is located underground at a depth of around 150 meters, with a total capacity of nearly nine million barrels of liquid hydrocarbons. The storage of Saudi crude oil at the facility is expected to begin during the second half of 2027.

Singapore is not the company's only international storage point, as Aramco maintains storage arrangements in Okinawa and Kiire in Japan, Ulsan in South Korea, Rotterdam in the Netherlands, and facilities linked to the Sumed pipeline system in Egypt. These strategic locations keep crude close to consumption centers and provide vital alternatives for meeting customer demand during shipping disruptions.


Saudi Market Rises 0.35% to 9,873 Points in Early Trading

An investor walks past the "Tadawul" logo in the Saudi market (Reuters)
An investor walks past the "Tadawul" logo in the Saudi market (Reuters)
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Saudi Market Rises 0.35% to 9,873 Points in Early Trading

An investor walks past the "Tadawul" logo in the Saudi market (Reuters)
An investor walks past the "Tadawul" logo in the Saudi market (Reuters)

Saudi Arabia’s benchmark stock index, the Tadawul All Share Index (TASI), rose 0.35% to 9,873 points in early trading on Monday, gaining 34.87 points from its previous close of 9,838.

Cisco Holding led the gainers, rising 6.66% to 35.22 riyals, followed by Miahona, which climbed 4.72% to 42.12 riyals.

Riyadh Cables advanced 4.02% to 96.95 riyals.

Among the decliners, GIG led losses, tumbling 9.01% to 25.66 riyals, followed by Bawan, down 6.25% at 23.72 riyals. Tasheel also shed 4.46% to 19.08 riyals.