Saudi Arabia: Northeast Riyadh Plan Charts New Development, Investment Hub

King Abdullah Financial District (KAFD) in Riyadh (Company handout)
King Abdullah Financial District (KAFD) in Riyadh (Company handout)
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Saudi Arabia: Northeast Riyadh Plan Charts New Development, Investment Hub

King Abdullah Financial District (KAFD) in Riyadh (Company handout)
King Abdullah Financial District (KAFD) in Riyadh (Company handout)

The Royal Commission for Riyadh City has completed the initial master plan for northeast Riyadh, covering about 456 square kilometers and setting out a comprehensive framework for one of the capital’s main areas of urban expansion over the next decade.

The area’s strategic location lends the plan weight beyond that of another residential extension of Riyadh. It is linked to King Khalid International Airport, Al-Sulai Valley, Dammam Road and Al-Janadriyah Road.

According to a commission statement carried by the Saudi Press Agency (SPA), the plan sets out an integrated land-use vision built around a long-term urban model, allowing phased expansion and the development of fully serviced communities with a balanced mix of residential, economic, recreational and natural uses.

Minister of Municipalities and Housing Majed Al-Hogail said completing the plan marked another step in Riyadh’s urban development, with a focus on bringing housing closer to services, linking neighborhoods through efficient transport networks and preparing future growth centers that support economic diversification.

Growth is already underway

The plan comes as parts of northeast Riyadh are already seeing rapid residential development.

Leading that expansion is Al-Fursan, a National Housing Company (NHC) project covering more than 35 million square meters and set to include more than 69,000 homes. The company began handing over about 2,000 units at the start of this year.

The project is designed for more than 250,000 residents and includes over 190 educational, healthcare, sports and recreational facilities, as well as more than 6 million square meters of green space.

The area also includes the East Gate project, alongside investment developments where deals have topped 5 billion riyals ($1.33 billion) to build thousands of homes and supporting facilities.

A new property hub

Khaled Al-Mobid, chief executive of Menassat Realty Co., said the plan was unlikely to shift the property market’s center of gravity entirely away from north Riyadh.

Instead, he told Asharq Al-Awsat, it would create a new development hub and spread growth more evenly across the capital.

Its success, he said, will depend on how quickly roads, transport networks and services are delivered.

People move to new districts when quality of life and job opportunities come together, he said, not simply because land is available.

Al-Mobid expects the announcement to spur early investor interest, with more inquiries and property purchases, but warned against confusing price gains backed by clear implementation plans with speculative increases.

An economic signal

Khalid Al-Jasser, a real estate developer and president of Amaken International Group, said the plan also sends a broader economic message.

He said it signals continued government commitment to long-term strategic projects and a stable investment environment, opening fresh opportunities for the private sector and investors.

The project, he said, is not simply about releasing developed land. It is about creating a new urban and economic center capable of generating future demand as the implementation of Vision 2030 targets accelerates.

More than housing

Al-Jasser said the plan’s real value lies in building an economic ecosystem that brings together housing, commerce, services and entertainment, making the area more attractive to both residents and investors.

Al-Mobid said some of the strongest opportunities would be in mid-priced housing, education, healthcare, retail and hospitality.

Office growth, he added, would depend on the area’s ability to attract economic activity, while proximity to the airport and Dammam Road could also support logistics development.

A more polycentric Riyadh

Al-Mobid said the project would reshape patterns of housing, work and investment across eastern and northeastern Riyadh.

Nearby districts could also benefit from better infrastructure and services.

Over time, he said, Riyadh is likely to move toward a more polycentric urban model, without established areas losing their appeal.

What investors should watch

Over the next five to 10 years, Al-Mobid expects housing supply to rise and new urban and economic centers to emerge, reshaping property prices according to project quality and the pace of infrastructure completion.

He said investors should watch the rollout of roads and utilities, land-use approvals, project-launch phases, supply levels and actual transaction prices, as well as public transport projects.

The focus, he said, should be on whether development is economically viable, not simply whether land prices rise.

Planning takes priority

Both experts said the way property is valued is changing.

Infrastructure quality, accessibility, integrated services and project sustainability are becoming more important to investment decisions than location and land prices alone.

Al-Mobid said the plan reflects Riyadh’s shift away from conventional urban sprawl toward integrated communities, where future property values will increasingly depend on the quality of the urban environment, not just the address.

A signal to foreign investors

Al-Jasser said the plan could also strengthen the Saudi market’s appeal to global investment funds by reflecting a clear government vision, continued spending on major projects and long-term growth opportunities in a stable investment environment.

By reshaping property demand and supporting Vision 2030 goals, the northeast Riyadh master plan is set to be more than another outward expansion of the capital.

It marks a step toward a more polycentric Riyadh, where the value of property is shaped as much by planning and services as by location and price.



Saudi Economy Relies on Non-Oil Growth Engines to Absorb External Shocks

Oil fields operated by Saudi Aramco (Aramco)
Oil fields operated by Saudi Aramco (Aramco)
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Saudi Economy Relies on Non-Oil Growth Engines to Absorb External Shocks

Oil fields operated by Saudi Aramco (Aramco)
Oil fields operated by Saudi Aramco (Aramco)

Saudi Arabia's economic indicators show a growing ability to withstand external shocks, supported by an expanding non-oil sector that has continued to grow despite geopolitical tensions and disruptions to regional trade and energy routes.

Although gross domestic product (GDP) contracted by 3.8% year on year in the third quarter of 2026, the pace of decline slowed from a 4.7% contraction in the second quarter. Non-oil activities grew by 1.9%, accelerating from 0.9% in the previous quarter, while oil activities declined by 20.4%.

The significance of this performance is particularly evident given the exceptional circumstances of the third quarter, including disruptions to shipping through the Strait of Hormuz and the temporary shutdown of the East-West Pipeline in September.

Seasonally adjusted real GDP also grew by 1.3% compared with the second quarter, indicating an improvement in economic activity on a quarterly basis and reflecting the ability of certain sectors to continue expanding despite the sharp contraction in oil activities.

Annual and Quarterly Performance

According to data from the General Authority for Statistics, oil activities were the main driver of the GDP contraction, contributing a negative 4.7 percentage points, while government activities subtracted 0.4 percentage points.

By contrast, non-oil activities made a positive contribution of 1.1 percentage points, while net taxes on products added approximately 0.1 percentage points.

The data also showed an improvement in economic performance on a quarterly basis, with seasonally adjusted real GDP increasing by 1.3% in the third quarter compared with the second quarter of this year.

The growth was driven by a 5.7% increase in oil activities and a 0.6% rise in non-oil activities, while government activities declined by 1.2%.

Last month, the International Monetary Fund (IMF) noted that Saudi Arabia's available fiscal buffers and alternative oil export facilities were helping limit the economic damage caused by the war. The Fund considered the Kingdom better positioned than its Gulf peers to contain the fallout from the disruptions.

The IMF projected a strong recovery in the Saudi economy in 2027, forecasting growth of 7.9% amid expectations of a rebound in oil activities and improvements in trade and shipping.

These projections are particularly significant in light of Saudi government estimates that the economy will contract by 3.6% in 2026, with the projected budget deficit rising to 4.9% of GDP.

The contrasting performance of oil and non-oil activities underscores the importance of the structural transformation underway in the Saudi economy.

Non-oil activities are no longer merely an additional contributor to GDP. They are playing an increasingly important role in absorbing shocks and limiting the transmission of volatility in the energy sector to the broader economy.

Promising Sectors

Since the launch of Vision 2030, the Saudi government has pursued a clear strategy to diversify income sources and broaden the economic base by accelerating non-oil growth and developing promising sectors.

These include information technology and artificial intelligence, transportation and logistics, tourism, entertainment and quality of life, renewable energy and sustainability, as well as mining, manufacturing and other targeted industries.

These efforts have helped diversify sources of economic activity and strengthen the contribution of non-oil sectors, giving the Saudi economy greater flexibility to withstand external fluctuations by diversifying sources of value added and expanding the role of domestic businesses and the private sector.

Consumer Spending

In this context, Dr. Abdullah Al-Mir, Assistant Professor of Economics at King Fahd University of Petroleum and Minerals, told Asharq Al-Awsat that the contraction in the Saudi economy during the third quarter was not broad-based. Instead, it was concentrated largely in oil activities, which declined by approximately 20%.

Non-oil activities, meanwhile, continued to grow by 1.9%, playing an important role in cushioning the impact of the sharp decline in the oil sector.

According to Al-Mir, government spending and private sector activity are two key pillars of this resilience. Continued consumer spending by households and the private sector helps sustain domestic demand in trade, retail, hospitality, services and transportation, all labor-intensive activities directly linked to the non-oil economy.

He noted that the Riyad Bank Purchasing Managers' Index (PMI) reached 55.3 in September 2026, remaining in expansion territory for the sixth consecutive month, reflecting continued improvement in non-oil private sector activity.

Al-Mir explained that the importance of non-oil activities becomes even clearer when the energy sector slows. Sustained activity in services, entertainment and domestic tourism helps small and medium-sized enterprises remain operational, preserves local supply chains and supports employment opportunities.

He emphasized the importance of strengthening the resilience of the non-oil private sector against external volatility.

Al-Mir added that one of the most significant signs of Saudi Arabia's economic transformation was the increase in the share of non-oil activities to 57.3% of the economy, describing it as a historic level that reflects a structural shift in the country's economic composition.

He linked this transformation to the decline in the unemployment rate among Saudi nationals to 6.5%, highlighting the potential impact of expanding non-oil activity on the labor market.

Al-Mir noted that sectors such as tourism, entertainment, technology and manufacturing continued to expand despite geopolitical disruptions that affected oil production and shipping, further demonstrating the structural transformation of the Saudi economy.

"Non-oil activities have a greater capacity to withstand shocks, while sustained investment momentum associated with Vision 2030 provides an alternative source of growth," he said.


Saudi Arabia Records 6,484 Franchise Registrations, Up 53%

A consumer goods store in Saudi Arabia (SPA)
A consumer goods store in Saudi Arabia (SPA)
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Saudi Arabia Records 6,484 Franchise Registrations, Up 53%

A consumer goods store in Saudi Arabia (SPA)
A consumer goods store in Saudi Arabia (SPA)

Commercial franchise registrations in Saudi Arabia grew by 53% during the first nine months of 2026, reaching 6,484, compared with 4,227 at the end of 2025, according to the Ministry of Commerce.

The ministry said the food and beverage, fuel and petroleum, and fashion and apparel sectors accounted for the highest number of franchise registrations in the Kingdom.

It explained that the Commercial Franchise Law aims to regulate and develop the sector, enhance transparency, protect the rights of all parties involved, and create an attractive investment environment.

It also seeks to improve the quality of goods and services and support the sustainability, growth and expansion of commercial activities.


Saudi Stock Market Falls 0.8% for Second Consecutive Session

A man walks past the Tadawul logo at the Saudi stock exchange (AFP)
A man walks past the Tadawul logo at the Saudi stock exchange (AFP)
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Saudi Stock Market Falls 0.8% for Second Consecutive Session

A man walks past the Tadawul logo at the Saudi stock exchange (AFP)
A man walks past the Tadawul logo at the Saudi stock exchange (AFP)

Saudi Arabia's benchmark Tadawul All Share Index (TASI) closed Sunday's session down 0.8% at 9,838 points, shedding 83 points amid total trading turnover of approximately SAR 3.1 billion.

The decline marked the index's second consecutive losing session after it fell 1% on Thursday to 9,922 points, ending a three-day winning streak that began with a 3.4% surge on Monday, followed by gains of 2.3% on Tuesday and 0.4% on Wednesday.

Despite Thursday's losses, the index ended last week up approximately 2.4%.

During Sunday's session, the benchmark fluctuated between a low of 9,789 points and a high of 9,923 points, moving further away from the 10,000-point threshold it had surpassed during trading last week.

Market Declines

Among heavyweight stocks, Al Rajhi Bank edged down approximately 0.1%, while ACWA Power fell around 3%.

Shares of Alujain and SPIMACO dropped approximately 10% each, while Saudi Reinsurance (Saudi Re) declined 8% and Jabal Omar Development fell around 7%.

Dr. Sulaiman Al Habib Medical Services Group and ZOUJAJ closed at SAR 214 and SAR 35.02, respectively, down 3% and 2% following the passing of their dividend eligibility dates.

Elm Leads Gains

In contrast, Elm shares surged approximately 9% following the release of the company's financial results.

SAHL rose around 4%, Sports Clubs Company gained more than 4%, and Watani Iron Steel advanced more than 2%.

BinDawood Holding and Sumou Real Estate each jumped 5%.