Experts predict suburban boom, smarter housing designs in Saudi Arabia

Experts speak during a panel at the Real Estate Future Forum in Riyadh on Tuesday.
Short Url
Updated 28 January 2025
Follow

Experts predict suburban boom, smarter housing designs in Saudi Arabia

RIYADH: The rise of community living and the increased accessibility of suburbs, driven by advancements in transportation, are transforming real estate trends in Saudi Arabia, experts say.

At the Real Estate Future Forum in Riyadh on Jan. 28, Khaled Elsehamy, chief development officer for real estate at the National Housing Co., highlighted the significant shift in the Kingdom's real estate sector. According to Elsehamy, more people are now viewing suburban areas as attractive living options.

During a panel discussion, Elsehamy also noted a growing preference among Saudi residents for smaller housing units, moving away from the traditional multigenerational homes.

“Suburbs are becoming increasingly appealing,” Elsehamy said. “People now find areas outside the central cities more attractive due to their convenience, accessibility, and proximity to essential services. They can easily connect with the city whenever they wish.”

He continued: “The rising costs of utilities, furniture, and maintenance have led people to seek smaller, more efficient homes. There is a growing demand for durable, modular designs that offer long-term savings while meeting modern needs.”

Elsehamy’s remarks came just a day after NHC CEO Mohammad Al-Buty announced that lower interest rates in 2025 will help the company surpass its 2024 sales targets. This aligns with NHC’s broader ambition to become the leading real estate developer in the region and stay at the forefront of the industry.

Elsehamy also discussed the shifting mindset of Saudi homebuyers, noting a stark contrast to traditional purchasing habits. “In the past, people bought homes for their children and grandchildren. That’s no longer the case,” he explained.

“Today, people are looking for homes that fit different life stages. They think, ‘I’ll live in this house now, move to a bigger one later, and eventually downsize to a smaller place by the beach in 20 years.’”

The NHC official emphasized that community living is driving new trends in Saudi Arabia’s housing market. “Community living allows residents to interact more with those around them, and it often includes amenities like community centers where people can work, especially those with remote work options.”

Echoing these sentiments, Andrew Baum, emeritus professor at Oxford, also spoke during the panel, highlighting how modern homebuyers prioritize accessibility over location.

“Previously, location was everything in real estate,” said Baum. “But today, accessibility has become the key factor. The new metro in Riyadh is set to significantly impact property values, opening up newly accessible areas.”

Oussama Kabbani, group chief Development officer at ROSHN, emphasized that Saudi Arabia’s real estate sector has reached a global standard post-Vision 2030. Reflecting on ROSHN’s approach to enhancing community living standards, Kabbani explained that understanding customer needs is central to their success.

“It all comes down to data and actively listening to your customers,” he said. “We conduct numerous surveys online and engage directly with residents to understand what’s missing. We focus a lot on creating activities for children, with educational and cultural events to keep them engaged.”

He continued: “We also place a strong emphasis on sports. It's not complicated — you don’t need to spend a fortune to make people happy. The key is knowing what makes them happy and delivering it with quality.”

Kabbani also noted the growing sophistication of the community real estate sector. He predicted that investments in senior living spaces, alongside data centers and healthcare facilities, would soon become more prominent.

“Our communities are designed with schools, community centers, playgrounds, and more,” Kabbani added. “When people choose to live in our communities, they’re not just buying a home — they’re buying a lifestyle. And we’re committed to ensuring that lifestyle is truly lived.”

During the session, Nasser Al-Kadi, chief investment officer at Awqaf Investment, praised the recent regulatory reforms in Saudi Arabia’s real estate sector, noting their positive impact on the market.

He emphasized the importance of embracing technological advancements to further modernize the sector. “The regulatory changes in Saudi Arabia have not only attracted external capital but also increased transparency within the industry,” Al-Kadi said.

He continued: “Technology isn’t just a tool for optimization — it’s a driver of growth and innovation. We haven’t yet seen the full potential of these technologies in the Kingdom’s real estate sector.”

Robert J. Di Franco, chief development officer at Roaya Co., also highlighted the growing influence of technology, stating that innovation is fundamentally reshaping every aspect of the real estate industry.

“Innovation and technology are shaping everything we do — from pre-acquisition phases to market analysis, accessing real-time transactional data, to how we manage construction projects and facility handovers. Technology is now integrated into every part of our process,” Di Franco said.


Saudi Arabia’s stock market leads globally in growth: top official

Updated 16 sec ago
Follow

Saudi Arabia’s stock market leads globally in growth: top official

RIYADH: Saudi Arabia’s capital market is experiencing rapid growth both regionally and globally, with the Kingdom seeing a surge in initial public offerings on both the main index and the parallel market, Nomu, according to an official.

During a panel discussion at the Capital Markets Forum in Riyadh on Feb. 18, Mohammed Al-Rumaih, CEO of Saudi Exchange, announced that liquidity on the Saudi Exchange has increased by 40 percent compared to 2023.

Al-Rumaih’s remarks came shortly after a report by professional services network EY, which forecasted a positive outlook for IPOs in the Middle East and North Africa region in 2025, with Saudi Arabia poised to lead the way.

“2024 was a great year for us. We did more than 55 listings; around 45 in the equity market, 13 on the main market, which doubled compared to 2023, and the rest in the parallel market. It put us as No.1 not just in the region, but globally as the fastest-growing exchange in the world,” said Al-Rumaih. 

He added: “What was great about those listings is that they were well-diversified, different sizes, great stories and it even provided new opportunities for our investors, both local and international. Last year was great, and we expect 2025 to continue the momentum, much bigger and better.”

Al-Rumaih highlighted that Saudi Arabia celebrated the listing of 400 securities in 2024, in addition to the introduction of the capital management system, which he referred to as “one of the great tools we’ve developed.”

“The beauty of this tool is that it made it easier for investors to participate in any IPOs. So, instead of having three receiving banks, now we have 15 which are members of the exchange and that reflected in the subscriptions. For example, subscriptions on Nomu grew by 50 percent,” he added. 

Al-Rumaih added that the capital management system also allows lead managers to consolidate listings quickly, and it has reduced the time from closing the book to listing by 50 percent. 

“Now, you are more efficient in allocating capital. So, if you close an IPO, you can go to another IPO. You get listed immediately, you can exit and enter another listing. So, all these factors have fueled the growth in our listings,” said Al-Rumaih. 

During the panel discussion, Abdulaziz Al-Emadi, acting CEO of the Qatar Stock Exchange, emphasized that developing the capital market is a key goal in the country’s Vision 2030 program.

Al-Emadi further noted that Qatar has established several key performance indicators for capital market growth and is on track to achieve these objectives by the end of the decade.

“The capital market itself has clear KPIs. We should achieve all those KPIs by 2030. Qatar aims to double liquidity, number of listings, and asset management business by 2030. In terms of what we have done in 2024, we did a lot of development in terms of infrastructure. The whole infrastructure has been renewed,” said Al-Emadi. 

He added: “Now, we are talking with Tadawul in order to activate our MoU which was signed in the first quarter of 2022 for dual listing.” 

Haitham Al-Salmi, CEO of Muscat Exchange said that Oman is trying to move its market toward the Emerging Market category, and it is implementing various initiatives to achieve this goal as a part of Vision 2040. 

“We started a strategy of ticking the boxes of all the required market infrastructure to make our market accessible and attractive. In 2024, Oman’s exchange was very active in terms of liquidity boosters and market cap appreciation. We had two listings and one of them was the largest IPO in Oman, bringing $8 billion to the market,” said Al-Salmi. 

Shaikh Khalifa Al-Khalifa, CEO of Bahrain Bourse, stated that the country’s capital market is developing steadily and is preparing to list several government-related entities in the near future.

Highlighting the progress of Bahrain’s non-energy private sector, Al-Khalifa also noted that the oil sector now contributes just 15 percent to the country’s GDP, a significant decline from 40 percent a decade ago.

“There is an IPO pipeline which is being led by the government to list some of the GREs in the exchanges, that will drive the private sector into utilizing the listing. So, we all work together to try to promote to increase the liquidity of the market and increase the number of investors,” said Al-Khalifa. 

Al-Khalifa added that the GCC Exchanges Committee chaired by the Saudi Exchange is playing a crucial role in ensuring the attractiveness of the markets in the region. 

“The GCC Exchanges Committee works in a way that there is less bureaucracy and more action. We meet on a quarterly basis and we entertain ideas. Some of the ideas do not go through, so we move on to other ideas and see what could be possibly be done. The GCC Exchanges Committee also has a short-term vision and a long-term vision,” added Al-Khalifa. 

Talking about the vitality of cross-border investments to propel the growth of the capital markets in the region, Al-Salmi said that investment does not have passports, and what matters most is accessibility. 

“Investors are looking for good opportunities. They can move across borders easily, and the best thing to do is to collaborate. We have almost signed with most of the GCC markets. We are ready in terms of enabling cross-listings, and it is now part of the issuers to decide to cross-list,” said Al-Salmi. 

Al-Emadi said that countries in the GCC region should work further to facilitate the ease of doing business by implementing advanced technology, as well as ensuring market stability to attract investors. 

Al-Rumaih said that the exchanges in the GCC are trying as much as possible to harmonize the regulations, adding that capital markets in the region provide huge opportunities for investors, both domestic and international. 

“GCC countries have a lot of similarities. We have the political stability and the leadership, as well as the transformation and diversifying away from oil, and the young population,” said Al-Rumaih. 


Saudi Tadawul eyes strong growth amid rising listings and foreign investment

Updated 34 min 21 sec ago
Follow

Saudi Tadawul eyes strong growth amid rising listings and foreign investment

  • Tadawul’s growth has been bolstered by a rising influx of qualified foreign investors
  • It is also expanding its footprint in data innovation and commodity markets

RIYADH: Saudi stock exchange operator Tadawul Group is poised to accelerate the growth of its fixed-income market in 2025, with a strong focus on sustainable finance, following a record year for the group. 

Speaking at the 5th Capital Markets Forum in Riyadh, Tadawul chairperson Sarah Al-Suhaimi highlighted 2024 as a transformative year for the exchange, with more than 50 listings across its main and parallel Nomu markets, reflecting a surge in market activity. 

Tadawul’s growth has been bolstered by a rising influx of qualified foreign investors, which now number nearly 4,200 and represent 25 percent of total equity capital market trades. This influx aligns with Saudi Arabia’s broader economic goals of diversifying its financial sector and attracting international capital. 

“A strong capital market extends beyond equities,” Al-Suhaimi said. “We are making significant strides in our diversification strategy. With over 45,000 investors, our fixed-income market is poised to gain further momentum in 2025, especially in sustainable finance.” 

Looking ahead, Al-Suhaimi forecasted continued momentum across multiple asset classes in 2025. “2024 was a milestone year for the group and its subsidiaries,” she said. “We saw greater interest from international investors than ever before, with nearly 4,200 QFIs, who account for 25 percent of our total ECM trades, and a more diverse range of sectors.” 

Tadawul is also expanding its footprint in data innovation and commodity markets. Through its acquisition of Direct FN and a stake in the Gulf Mercantile Exchange, the group aims to broaden its market offerings and enhance its competitive edge. 

“These strategic steps align with our diversification strategy, broadening opportunities and reinforcing our position across multiple financial segments,” Al-Suhaimi said. 

The CMF, as the world’s largest capital market event, continues to serve as a premier platform where Saudi Arabia’s rapidly evolving capital market intersects with global finance. 

Al-Suhaimi expressed confidence that the forum will spur new partnerships and innovations, paving the way for further collaboration and growth within the Kingdom’s financial ecosystem. 

“CMF is an opportunity to forge meaningful partnerships and spotlight potential venues through which we can leverage synergies for a long-lasting impact,” she said. 

With an eye on 2025, Tadawul is positioned to play a pivotal role in shaping the future of the Middle East’s capital markets. 


Pakistan eyes Gulf market as it aims to double exports in five years — finance minister

Updated 23 min 54 sec ago
Follow

Pakistan eyes Gulf market as it aims to double exports in five years — finance minister

  • Pakistan has signed MoUs to ensure business-to-business collaborations with Gulf countries
  • Muhammad Aurangzeb Pakistan wants trade, investment to be the engines of economic growth

KARACHI: Federal Minister for Finance and Revenue Muhammad Aurangzeb has said Pakistan sees huge potential in the Gulf Cooperation Council (GCC) market, as the country plans to double its exports in the next three to five years, according to details of his media interviews shared on Tuesday officially.
The minister and the governor of Pakistan’s central bank, Jameel Ahmad, traveled to Saudi Arabia last Saturday to attend the two-day Alula Conference for Emerging Market Economies 2025, which brought together global financial leaders, including the managing director of the International Monetary Fund, Kristalina Georgieva.
Pakistan has already taken several steps to benefit from the Middle Eastern and Chinese markets, signing memorandums of understanding to ensure business-to-business collaborations and setting up special economic zones to attract foreign investment for greater employment and industrial development.
“Our ambition is that we are roughly about $30 billion plus in terms of exports, and we want to double in the next sort of three to five years,” Aurangzeb said in interviews with Asharq Business and Bloomberg on the sidelines of the Alula Conference in Saudi Arabia.
According to the Pakistan Bureau of Statistics, the country sold $30.7 billion worth of goods in the international market by the end of the last fiscal year in June 2024, showing an 11 percent growth over the $27.7 billion in exports made in 2023.
In the first seven months of the current fiscal year until January, Pakistan’s exports rose 10 percent to $19.6 billion compared with $17.8 billion in the corresponding period a year ago.
The finance minister said his country had progressed in terms of macroeconomic stability in the past 12 to 14 months, pointing out that it was now trying to turn trade and investment into the engines of its economic growth.
“Going forward, I see GCC [Gulf Cooperation Council], where we are sitting right now, we see huge export potential in these markets,” he continued.
The GCC is a regional organization comprising Saudi Arabia, the United Arab Emirates, Bahrain, Qatar, Kuwait and Oman.
Pakistan’s fragile economy has shown signs of stability in the past year, with inflation easing to 2.41 percent in January, creating room for the central bank to reduce borrowing rates by a cumulative 1,000 basis points since June to 12 percent to spur growth.
The State Bank of Pakistan expects 2.5 to 3.5 percent growth in the current fiscal year ending in June.
“We want to now consolidate and use this and the fiscal space which is available to prioritize expenditures that can then help our trajectory as we move forward,” said the minister.


Saudi Arabia’s refinery output hits 2.54m bpd in December, marking 5% annual growth

Updated 51 min 4 sec ago
Follow

Saudi Arabia’s refinery output hits 2.54m bpd in December, marking 5% annual growth

RIYADH: Saudi Arabia’s refinery output climbed to 2.54 million barrels per day in December, reflecting a 5 percent year-on-year increase, according to the latest data from the Joint Organizations Data Initiative.

Fuel oil, which accounted for 18.2 percent of total refinery output, rose 7 percent over the year to 464,000 bpd. Meanwhile, gas diesel — the largest component of the refinery mix at 40 percent — declined by 5 percent.

Motor and aviation fuel production, which represented 24.7 percent of total output, recorded a 5 percent increase during the same period.

At the same time, refined crude exports saw a slight 1 percent drop, falling to 1.13 million bpd in December. Diesel remained the primary refined product export, making up 36 percent of total shipments, while motor and aviation gasoline contributed 20 percent, and fuel oil accounted for 15 percent.

The report also revealed that the Kingdom’s crude oil production stood at 8.91 million bpd in December, marking a 0.44 percent annual decline. Meanwhile, crude exports fell by 2.57 percent to 6.15 million bpd.

Domestic demand for refinery products also recorded a slight dip, decreasing by 26,000 bpd year on year to 2.29 million bpd.

OPEC+ countries, which include the 13 members of the Organization of the Petroleum Exporting Countries and non-OPEC producers like Russia, have been coordinating output cuts to stabilize the global oil market and address fluctuations in oil prices.

The most recent OPEC+ decision in December was to delay increasing oil output by three months, pushing the start of monthly production hikes to April.

This decision, which extended the full unwinding of cuts until the end of 2026, was made in response to continued weak demand and high levels of production outside the group.

As a result, OPEC+ plans to increase output gradually starting in April, while maintaining the flexibility to adjust these plans if market conditions change dramatically. The group’s broader strategy remains focused on long-term market stability and achieving a balanced supply-demand scenario that supports fair oil prices.

Moving forward, OPEC+ has continued to emphasize its commitment to energy cooperation with other regions and its role in ensuring market stability. However, the exact pace of future output increases and cuts will depend on both the global economic situation and developments in oil demand, including the transition toward renewable energy sources and geopolitical considerations.

Direct crude usage

Saudi Arabia’s direct crude oil burn — the use of crude oil in power generation — declined by 24,000 bpd in December, falling to 279,000 bpd, an 8 percent year-on-year drop and a notable 27 percent decrease from November.

The monthly decline in direct crude burn in the Kingdom can be attributed to colder weather conditions, which typically reduce the demand for energy-intensive heating during the colder months.

On a yearly basis, the decline can likely be linked to the more efficient use of energy across various sectors. This aligns with the Kingdom’s ongoing efforts to enhance energy efficiency, as highlighted during the February Egypt Energy Show in Cairo.

During the event, Saudi Energy Minister Prince Abdulaziz bin Salman reaffirmed the nation’s commitment to energy cooperation with Egypt.

As part of the partnership, Saudi firms will develop five solar and wind projects in Egypt, with a total capacity of 1.696 gigawatts and an investment of SR6.2 billion ($1.65 billion).

Additionally, ACWA Power signed a deal for a 2GW wind project in South Hurghada, valued at SR8.6 billion, making it Egypt’s largest wind energy initiative.

The Saudi-Egypt Electricity Interconnection Project, an SR6.7 billion investment enabling 3,000 MW of electricity exchange, was also highlighted as a key step in regional energy cooperation.

These projects, alongside regulatory development and capacity-building initiatives, contribute to the Kingdom’s broader efforts to promote a more sustainable and efficient energy model.


Saudi Capital Market Forum expands globally with events in Hong Kong and New York

Updated 18 February 2025
Follow

Saudi Capital Market Forum expands globally with events in Hong Kong and New York

RIYADH: The Capital Market Forum is expanding its global footprint with two events scheduled in Hong Kong in May and New York in October, marking a step forward in Saudi Arabia’s financial sector growth. 

The new events were announced by the CEO of the Saudi Tadawul Group at its latest edition, which is running from Feb. 18 to 20 in Riyadh and serves as a platform for fostering international investment and regulatory collaboration. 

In a panel discussion titled “Global Capital Markets: Enhancing Resilience and Connectivity,” Khalid Al-Hussan emphasized the conference’s role in strengthening the Kingdom’s position as a global financial hub.

“Our market has evolved significantly. Previously, we had a single equity market accessible only to locals and residents. Today, we have two equity markets open to local, regional, and foreign investors,” Al-Hussan said, adding that foreign investment participation in the equity market has reached nearly $100 billion.

“Any investor can access any market. Any issuer can access any market. So, we need to build all the necessary components around the stock exchange to compete effectively,” he added.

Bonnie Y Chan, CEO of Hong Kong Exchanges and Clearing Limited, echoed the sentiment, emphasizing the need for a compelling value proposition for both issuers and investors. “We want to ensure we offer a full suite of products,” she said, acknowledging 2025 as a year of continued uncertainty despite a positive start.

Roland Chai, president of European Market Services at Nasdaq, said: “When regulation works, it protects investors, ensures seamless markets, and upholds reliability and integrity. As technology evolves, we must align regulations with market development to maintain efficiency.”

CEO of the World Federation of Exchanges, Nandini Sukumar, praised Saudi Arabia’s market transformation, describing its development in the last five years as astonishing, striking, and visible.

Al-Hussan also outlined Saudi Tadawul Group’s strategic investments in financial infrastructure, particularly in data services. “We have heavily invested in data infrastructure, and our first cloud-based product is set to launch in April,” he revealed, emphasizing the importance of trading, clearing, and settlement solutions in capital market infrastructure.

With CMF facilitating over 600 scheduled meetings between investors and issuers globally, the forum is set to bolster international collaboration and solidify the Kingdom’s position as a key player in the financial sector.

The start of day one of the CMF highlighted key global economic trends for 2025, with experts emphasizing steady growth despite market volatility, with a focus on international resilience, inflation normalization, and market performance.