Riyadh Sees Surge in Business Activity Ahead of Eid al-Fitr

Shoppers crowd to buy sweets at a shopping mall in Riyadh (Asharq Al-Awsat)
Shoppers crowd to buy sweets at a shopping mall in Riyadh (Asharq Al-Awsat)
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Riyadh Sees Surge in Business Activity Ahead of Eid al-Fitr

Shoppers crowd to buy sweets at a shopping mall in Riyadh (Asharq Al-Awsat)
Shoppers crowd to buy sweets at a shopping mall in Riyadh (Asharq Al-Awsat)

In the final ten nights of Ramadan, as Eid al-Fitr draws near, Riyadh transforms into a bustling hive of activity. Shops see an increase in foot traffic, and the streets become crowded, reflecting the anticipation and excitement of families preparing for the upcoming celebration.

As Eid approaches, families race to stores to purchase new clothes, decorations, gifts, and everything else that adds to the festive atmosphere.

In a familiar scene, many stores extend their working hours to 24 hours a day to accommodate the growing influx of shoppers, with merchants viewing this season as a golden opportunity to boost sales, particularly in textiles, footwear, home appliances, and sweets.

This bustling commercial activity not only benefits stores but also contributes to supporting the national economy.

Meanwhile, the transportation sector is also experiencing a surge in activity, as many families travel to their hometowns to prepare for the holiday. Hotel and rest house bookings are rising, especially with the growing demand to spend Eid vacation in these pleasant surroundings.

Eid preparations in Saudi Arabia go beyond shopping; they also include getting homes ready to welcome guests and preparing traditional dishes that define each household.

Eid in the kingdom is not only a religious occasion but also an opportunity to strengthen family bonds and connections, as relatives and friends come together to exchange greetings and celebrate.

Economic analyst Rowan bin Rubayan told Asharq Al-Awsat that Riyadh’s markets are witnessing an exceptional consumption season as Eid al-Fitr approaches.

Shoppers are flocking to a wide range of sectors, with the most notable being fashion, food, and sweets. The hospitality, restaurant, entertainment, and domestic tourism sectors are also benefiting from this boom, as are transportation and delivery services, which are experiencing significant growth due to increased demand.

Bin Rubayan highlighted that promotional offers play a key role in driving sales, with stores relying on discounts and free gifts to attract shoppers during the holiday season.

Economic expert and King Abdulaziz University academic Dr. Salem Baajaja told Asharq Al-Awsat that Riyadh experiences a significant commercial boom during the last ten days of Ramadan, leading to a noticeable surge in market activity.

Baajaja explained that, as the most populous city in the kingdom, Riyadh sees a sharp increase in demand for goods, prompting stores to operate around the clock to meet the ongoing influx of shoppers.

This surge has had a positive impact on commercial revenues, contributing to the overall growth of the national economy.

In conclusion, Eid al-Fitr is not just the end of the fasting month; it is a season of joy that strengthens family ties in a spirit of love and solidarity.

Streets are adorned with decorations, homes are lit up, and parks are filled with families, while entertainment events and festive shows add a special touch of happiness, completing the Eid celebration with a sense of unity and joy.



Saudi Arabia Implements Real Estate Regulations to Stabilize Riyadh’s Market

The Saudi capital, Riyadh (SPA)
The Saudi capital, Riyadh (SPA)
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Saudi Arabia Implements Real Estate Regulations to Stabilize Riyadh’s Market

The Saudi capital, Riyadh (SPA)
The Saudi capital, Riyadh (SPA)

Amid rapid growth in Saudi Arabia’s real estate sector, fueled by the country’s economic diversification strategy, Crown Prince Mohammed bin Salman has introduced a series of regulatory measures in Riyadh. These steps aim to balance the capital’s real estate market, demonstrating the leadership’s commitment to providing sustainable and effective solutions for challenges in this vital sector.

Experts told Asharq Al-Awsat that rising property prices remain one of the biggest challenges in the real estate market. According to the General Authority for Statistics (GASTAT), the Real Estate Price Index increased by 3.6% in Q4 2024—the highest quarterly growth in six quarters—mainly driven by the residential sector, which accounts for 72.7% of the index.

Several factors are contributing to rising prices, including high demand for housing in major cities, large-scale development projects attracting investment, and improvements in infrastructure that increase property values.

Following an in-depth study by the Royal Commission for Riyadh City and the Council of Economic and Development Affairs, the Crown Prince’s directives focus on increasing housing supply and regulating market fluctuations to ensure fairness and stability.

Key Real Estate Measures

The newly announced policies include lifting restrictions on real estate transactions and development in several areas of Riyadh, covering 81.48 square kilometers. To meet housing demand, authorities plan to allocate between 10,000 and 40,000 residential plots annually over the next five years, with a price cap of SAR1,500 per square meter. Priority will be given to married citizens and individuals over 25 who do not own property, with applications processed through a new digital platform developed by the Royal Commission for Riyadh City.

To prevent speculative trading, new regulations restrict the sale, leasing, or mortgaging of land for ten years, except for construction financing. If a project is not completed within this period, the land will be reclaimed at its original purchase price.

Minister of Municipal, Rural Affairs, and Housing Majid Al-Hogail emphasized that these measures will help balance supply and demand while also revising the White Land Tax program to encourage property development. He also confirmed a comprehensive review of rental regulations, with amendments expected within 90 days.

Strong Demand for Real Estate

A report by JLL, a global real estate services firm, highlighted that despite a slowdown in construction projects across the Middle East and Africa in 2024, Saudi Arabia remained a strong performer. The Kingdom accounted for SAR29.5 billion in construction contracts, with significant activity in the hospitality, mixed-use, and entertainment sectors. The residential sector also performed well, with SAR7.9 billion in awarded contracts.

As Saudi Arabia prepares to host major global events, it may face challenges related to capacity and rising costs between 2025 and 2028. However, the government is addressing these issues by localizing industries, expanding infrastructure investments, accelerating digital transformation, and implementing regulatory reforms, with a focus on renewable energy and sustainability.

JLL’s Head of Projects and Development Services in Saudi Arabia, Maroun Dib, noted that strategic projects under Vision 2030 will continue attracting massive investments, creating expansion opportunities in the real estate sector. He added that major events like the FIFA World Cup and Expo will drive significant capital inflows, strengthening infrastructure development and setting the real estate sector on a solid growth trajectory beyond 2025.

Speaking to Asharq Al-Awsat, Khaled Al-Mobayed, CEO of Manassat Real Estate, stressed the importance of increasing housing supply to meet growing demand. He warned that failing to do so could lead to rising rental prices. Al-Mobayed suggested that expanding real estate development into smaller cities near major urban centers could ease pressure on large cities while providing affordable housing options.

Riyadh’s hospitality sector is experiencing rapid growth, driven by business tourism and international events. Average hotel room rates rose by 13.3% in 2024 to SAR239 per night, with 2,312 new hotel rooms expected in 2025. In Jeddah, religious and leisure tourism remains strong, supporting long-term growth despite minor market fluctuations.

Meanwhile, the retail sector in Riyadh is shifting toward experiential shopping, as consumers seek entertainment-driven retail experiences. Traditional shopping malls—especially enclosed malls—are facing declining occupancy rates. While large malls saw a 1.8% increase in lease rates in Q4 2024, community malls experienced stronger growth at 5.5%, whereas regional malls declined by 9.3%. A similar trend is visible in Jeddah, highlighting the need for more diverse and interactive retail spaces.

Industrial and Logistics Sectors on the Rise

Rising rental rates in the industrial and logistics sectors in Riyadh and Jeddah indicate strong market demand, fueled by economic diversification and the growth of e-commerce.

Additionally, the data center sector is rapidly expanding, driven by 5G technology and artificial intelligence. Riyadh, Dammam, and Jeddah now rank third in the Middle East and Africa for operational co-location data centers, contributing 12.6% of the region’s total IT capacity (1,050 megawatts) by the end of 2024. This positions Saudi Arabia for further digital infrastructure expansion.