Sky-high architecture shows Kingdom’s business ambitions

Vision 2030 seeks to double Riyadh’s population and rebrand it as one of the world’s top 10 global city economies. (SPA)
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Updated 24 May 2025
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Sky-high architecture shows Kingdom’s business ambitions

  • Influx of more than 180 multinational headquarters is generating strong demand for premium towers

RIYADH: Skyscrapers are transforming Riyadh’s skyline, signaling a bold shift in the capital’s urban and economic ambitions. From finance to high-end living, vertical development is accelerating, drawing comparisons to global cities such as New York.

Riyadh’s skyline is rapidly evolving, with high-rises, luxury towers, and smart skyscrapers rising from the King Abdullah Financial District to North Riyadh.

This vertical sprint isn’t just aesthetic, it’s strategic. Vision 2030, economic diversification plan, is at the heart of this real estate evolution. It seeks to double Riyadh’s population and rebrand it as one of the world’s top 10 global city economies.

Verticality is the new normal

According to the Real Estate and Municipalities Lead Partner at PwC Middle East Imad Shahrouri, Riyadh’s upward push is “a natural response” to the city’s transformational ambitions.

“We’re seeing landmark real estate initiatives unlock new mixed-use districts, while the influx of more than 180 multinational headquarters is generating strong demand for premium commercial and residential towers,” he told Arab News.

According to a report by Knight Frank, Riyadh’s population is projected to grow from 7 million in 2022 to 9.6 million by 2030.

To accommodate this change, the city will need approximately 305,000 new housing units for Saudi nationals between 2024 and 2034.

The growth is fueled by a compound annual rate of 4.1 percent, and Riyadh’s expatriate population is expected to swell to 5.5 million by 2030.

Much of this demand stems from the Kingdom’s need for skilled workers to manage giga-projects, new headquarters, and infrastructure rollouts.

These figures underscore just how essential vertical development has become. Riyadh isn’t just planning up — it has to build up to meet the city’s rapidly evolving demographic and economic realities. 

Developers are building vertically to capitalize on land and offer walkable, integrated live-work-play spaces that align with global urban trends.

Imad Shahrouri, Real Estate and Municipalities Lead Partner at PwC Middle East

Shahrouri said: “These developments aren’t happening in isolation; they’re supported by significant investment in public transit and metro infrastructure, which is accelerating the shift toward more connected, transit-oriented urban nodes.”

In a city where land prices are soaring and lifestyle expectations are shifting, vertical living is more than a trend, it’s financially viable.

The appeal is not just in height but also in smart density. Developers are building vertically to capitalize on land and offer walkable, integrated live-work-play spaces that align with global urban trends, Shahrouri explained.

High-rise hype and high-stakes investing

Luxury towers are fast becoming Riyadh’s new skyline signature, and investors are taking notice. 

From branded residences to environmental, social, and governance-compliant office towers, high-spec developments are increasingly viewed as strategic plays in a maturing market.

“We’re also seeing a shift in tenant expectations,” Shahrouri said.

He added: “Corporates are moving away from older stock in favor of smart, flexible spaces that support hybrid work models and sustainability goals. This is accelerating interest from institutional investors and REITs, who are drawn not just by the potential returns but by a maturing, more transparent market environment.”

Shahrouri cautions that valuation volatility in speculative zones and execution risks, like supply chain disruptions or limited contractor capacity, are factors investors must watch closely. Still, with robust local partnerships and regulatory alignment, the upside potential remains high.

A shift in the  mindset

Arthur Neron-Bancel, principal at Oliver Wyman’s Government and Public Institutions practice, calls Riyadh’s vertical growth a reflection of deeper socio-economic shifts.

“There is a global trend toward higher-density mixed-use urban developments offering integrated ‘live-work-play’ environments. Both Saudis and expatriates now expect spaces that align with international standards,” Neron-Bancel told Arab News.

He continued: “Demographic shifts among Saudis, such as smaller family sizes and later marriages, along with increased migration to Riyadh from other cities, contribute to increased demand for apartments or townhouses.”

Neron-Bancel noted that skilled expatriates, drawn by major government-led initiatives, are contributing to rising demand for new residential formats such as executive housing and apartments.

With projects like Expo 2030 and the 2034 FIFA World Cup on the horizon, he said, investors are expecting that demand to remain strong for several years.

Beyond just demographic drivers, he noted the regulatory and structural shifts behind Riyadh’s vertical real estate momentum.

“Recent regulatory reforms, primarily driven by the Royal Commission for Riyadh City, Real Estate General Authority, and Riyadh Amanah, have played a significant role in facilitating high-rise mixed-use developments,” he said.

Neron-Bancel added that key initiatives include the Wafi program for off-plan sales to aid developer financing, the Strata law supporting shared ownership and homeowner associations, and the Ejar program standardizing rental markets.

That strategy includes stronger investor protections, clearer permitting pathways, and a deliberate push toward mixed-use verticality.

Architectural shift

Vertical expansion is prompting new questions around urban identity, density, and the kinds of spaces cities should create for people to live, work, and thrive.

For some, this transformation signals a redefinition of what it means to be a modern capital.

Sachin Kerur, managing partner at international law firm Reed Smith, believes Riyadh’s new skyline is as much a cultural transformation as it is an architectural one. 

The higher density of development creates higher commercial and residential rental values with enhanced capital appreciation.

Sachin Kerur, mmanaging partner at Reed Smith

“There is a shift in the country’s urban development strategy, which is being seen best in Riyadh. Vertical development is gaining more attention than ever,” Kerur  told Arab News.

He added: “The higher density of development creates higher commercial and residential rental values with enhanced capital appreciation. This is driving the appetite for the supply side as investors start to queue for opportunities.”

Kerur explained that the demand side is also being driven by a young demographic wanting modern, affordable and hassle-free accommodation providing the lifestyle opportunities enjoyed in other major cities in the GCC.

Kerur believes Riyadh’s real estate boom is a symptom of the Kingdom’s infrastructure ambitions, a key ingredient of Vision 2030. 

The focus on vertical expansion signals the end of so-called urban sprawl, which is not seen as economically, or environmentally, attractive.

“There is definitely more dialogue in the Kingdom between government, developers, planning professionals, and architects. Urban sprawl is definitely old news,” he said, adding: “Cities are not judged well on the breadth of their horizontal limits. Today, building up creates better asset yields, reduces footprint and improves the living environment of a city.”

While Kerur acknowledges cultural hesitations, he remains optimistic.

“What Riyadh can now do is to aggregate the best in architectural and engineering talent and practice to create the next generation of innovative vertical living,” he added.

Kerur said that the sustainability advantages of Riyadh’s vertical shift will be considerable, particularly through the adoption of modern building materials and design approaches.

However, he noted that urban planners and developers will also need to account for cultural preferences and social attitudes toward high-rise living, which may still be unfamiliar or uncomfortable for many Saudis.

Even so, with a predominantly young population and fast-moving social change, he expects that more young Saudis, along with the growing expatriate community, will gradually embrace this new urban lifestyle.

Identity and investment

Kerur believes it is “absolutely essential” for Riyadh to have best-of-class, innovative and attractive vertical working and living space — a very clear expectation from the market and users.

When people can live, work, and socialize within the same area — often within the same building or neighborhood — it creates a more efficient, convenient, and productive environment.

This is especially important in cities that aspire to be global business hubs. Commuting long distances for meetings, meals, or leisure activities wastes time, adds stress, and contributes to traffic congestion.

In contrast, compact, mixed-use developments reduce the need for constant travel, helping professionals and residents make the most of their time.


Saudia, flyadeal rise high in Cirium’s June punctuality rankings

Updated 22 sec ago
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Saudia, flyadeal rise high in Cirium’s June punctuality rankings

  • Marks Saudia’s second time in 2025 leading global rankings for arrival and departure punctuality
  • Achievement aligns with Kingdom’s ambition to become global aviation hub

JEDDAH: Saudia emerged as the world’s most punctual airline in June, topping global rankings for both on-time departures and arrivals, according to aviation analytics firm Cirium.

In its latest report, the London-headquartered independent aviation analytics company said that Saudia operated 16,733 flights in June, achieving a 91.33 percent on-time arrival rate and a 90.69 percent on-time departure rate — a 2.41 percent increase in arrival punctuality compared to May’s rate of 89.18 percent.

The achievement aligns with Saudi Arabia’s ambition to become a global aviation hub and a top destination for international travelers. Under Vision 2030, the Kingdom is investing heavily to boost private sector participation, expand connectivity, and reinforce its role in global aviation.

It also supports the National Aviation Strategy’s goal of enhancing the travel experience, which aims to target 330 million passengers annually, over 250 global destinations, and 4.5 million tons of air cargo by 2030.

Ibrahim Al-Omar, director general of Saudia Group, said, “Achieving exceptional on-time performance and maintaining operational excellence requires seamless coordination across all sectors and subsidiaries of the group.”

This marks Saudia’s second time in 2025 leading global rankings for both arrival and departure punctuality, following a similar achievement in March. It also mirrors the airline’s performance in June 2024, when it topped the rankings with an on-time arrival rate of 88.22 percent and a departure rate of 88.73 percent across 16,133 flights to more than 100 destinations.

Flyadeal, Saudia Group’s low-cost carrier, ranked first in the Middle East and Africa for on-time arrival performance, achieving a rate of 91.77 percent across more than 5,980 flights. The carrier’s performance surpassed that of Saudia within the region.

In a statement, Saudi Group said: “The accomplishment reflects Saudia and flyadeal’s unwavering focus in operational efficiency and excellence, achieved during the high-demand period of Hajj, summer travel, and Eid Al-Adha holidays.”

In the airport category, Cirium ranked Riyadh’s King Khalid International Airport as the world’s most punctual large airport for the same period. The travel gateway recorded a 90.41 percent on-time departure rate and an 86.99 percent on-time arrival rate, outperforming major global hubs in operational efficiency.

With 22,180 flights tracked, the Kingdom’s capital hub served 109 routes operated by 59 airlines, showcasing Saudi Arabia’s growing global connectivity and aviation excellence.

Meanwhile, Dammam’s King Fahd International Airport ranked seventh among medium-sized airports for on-time departures, achieving an 86.18 percent punctuality rate across 8,200 flights on 59 routes, according to Cirium.


Closing Bell: Saudi main index steady at 11,277; Nomu edges up

Updated 22 min 55 sec ago
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Closing Bell: Saudi main index steady at 11,277; Nomu edges up

RIYADH: Saudi Arabia’s Tadawul All Share Index was steady on Thursday, as it marginally declined by 0.01 percent, or 0.82 points, to close at 11,276.91. 

The total trading turnover of the benchmark index was SR4.96 billion ($1.32 billion), with 128 of the listed stocks advancing and 120 declining. 

The Kingdom’s parallel market Nomu gained 31.28 points to close at 27,479.50.

The MSCI Tadawul Index marginally shed 0.02 points to 1,445.23. 

The best-performing stock on the main market was SHL Finance Co. The firm’s share price increased by 9.95 percent to SR19.33. 

The share price of Fawaz Abdulaziz Alhokair Co., also known as Cenomi Retail, rose by 5.8 percent to SR31.38. 

Sustained Infrastructure Holding Co. also saw its stock price rise by 4.24 percent to SR35.44. 

Conversely, the share price of Umm Al Qura for Development and Construction Co. declined by 6.14 percent to SR25.06. 

On the announcements front, Anmat Technology for Trading Co. said that it received a contract valued at SR50 million from Etihad Etisalat, also known as Mobily, to supply and install power generator systems and a fuel monitoring system. 

In a press statement, Anmat said that the contract is effective from June 26 and will last until May 17, 2028. 

The company added that the impact of the deal will be reflected in the firm’s financials from the second half of this year and will continue until the end of the contract duration. 

The share price of Anmat, which is listed in Nomu, increased by 10.19 percent to SR12.33. 

International Human Resources Co. said that it signed a framework agreement with the Arab National Bank to provide human resources services. 

According to a Tadawul statement, the contract is valid for 12 months and will be renewed for a similar period unless either party notifies the other at least 30 days prior to the expiry date. 

International Human Resources Co.’s share price rose by 2.83 percent to SR6.17. 


Saudi Tourism Development Fund rolls out programs to boost startup growth 

Updated 10 July 2025
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Saudi Tourism Development Fund rolls out programs to boost startup growth 

RIYADH: Tourism startups and entrepreneurs in Saudi Arabia stand to benefit from three newly launched support initiatives aimed at accelerating innovation, attracting investment, and strengthening the Kingdom’s growing travel economy. 

The Tourism Development Fund has introduced the Grow Tourism Incubator, Tourism Hackathons and Bootcamps, and the Grow Tourism Accelerator — a suite of initiatives designed to empower early-stage ventures through TDF Grow, its non-financial enablement arm, according to a press release. 

Developing a robust tourism landscape is a key pillar of Saudi Arabia’s Vision 2030 agenda, as the Kingdom works to diversify its economy and reduce its reliance on oil revenues. 

The National Tourism Strategy targets 150 million annual visitors by 2030, after surpassing the 100 million milestone ahead of schedule, with official data showing the Kingdom welcomed 116 million tourists in 2024 — exceeding its annual target for the second year in a row. 

Qusai bin Abdullah Al-Fakhri, CEO of TDF, said: “We remain committed to empowering entrepreneurs to transform their ideas into promising, impactful projects. We strive to provide a comprehensive support ecosystem that addresses the needs of businesses at every stage, helping them overcome challenges and accelerate their growth.”  

He added: “These three programs embody our dedication to practical enablement, offering guidance, support, and connections with key stakeholders, to build a sustainable tourism sector full of opportunity and aligned with the aspirations of Saudi Vision 2030.” 

The Grow Tourism Incubator Program, now in its first edition, will target early-stage tourism startups. Registration opened on June 24 and will remain open until July 17. 

The incubator offers a 10-month immersive environment, providing participants with access to shared workspaces, as well as legal, marketing, and logistical support, along with technical and administrative services. 

The program will also include workshops, specialized training sessions, and mentorship by leading industry experts, delivered both virtually and in person at TDF headquarters — ensuring accessibility for entrepreneurs across the Kingdom. 

The Tourism Hackathons and Bootcamps program aims to support innovators and early-stage tourism projects, with a focus on three key regions: Asir, Al-Ahsa, and Madinah. 

Running for five months, the program will allow participants to take part in hackathons followed by training bootcamps, helping them develop their ideas into actionable prototypes. 

Registrations opened on July 1 and will remain open until July 22. 

The Grow Tourism Accelerator builds on the success of previous cohorts, which have graduated 99 participants to date. 

This three-month program is designed to support startups and help them scale within the tourism sector. 

“The accelerator also attracts international companies, enriching the diversity of the investment landscape and elevating service quality across the industry. The program provides integrated mentorship, culminating in graduation and connections with potential investors,” the TDF release stated. 

It added that the TDF Grow platform has supported 8,800 beneficiaries through its non-financial programs and initiatives, helping entrepreneurs and small and medium enterprises accelerate their projects and enhance the competitiveness of Saudi Arabia’s tourism sector.


OPEC says no peak to oil demand before 2050

Updated 10 July 2025
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OPEC says no peak to oil demand before 2050

  • OPEC sees oil demand rising by 18.6% to around 123 mbd in 2050
  • It expects demand to grow for longer than other forecasters

PARIS: The OPEC oil cartel said Thursday that demand for crude will continue to expand through at least 2050, calling efforts to rapidly shift away from fossil fuels an unworkable fantasy.

In its latest annual report on the outlook for oil demand, OPEC sees global oil demand rising by 18.6 percent from 103.7 million barrels per day in 2024 to around 123 mbd in 2050.

That rising demand will be “driven by expanding economic growth, rising populations, increasing urbanization, new energy-intensive industries like artificial intelligence, and the need to bring energy to the billions without it,” said OPEC Secretary General Haitham Al-Ghais in his foreword to the report.

“There is no peak oil demand on the horizon,” he said.

That forecast puts OPEC, which gathers together a number of the world’s leading oil exporting nations, at odds with the International Energy Agency, whose member states include many oil-consuming nations.

The IEA said last month that it expects global oil demand to begin to decline in 2030, driven by the rise of electric cars and the shift away from crude to produce power.

The IEA even sees oil demand dropping in Saudi Arabia as it replaces crude with gas and renewable energy to produce power.

Ghais said that OPEC sees growth in oil demand being primarily driven by developing nations, and that fossil fuels still account for around 80 percent of the global fuel mix, little changed from when the cartel was founded in 1960.

.”..it has become increasingly clear to many policymakers in recent years that the narrative of swiftly phasing out oil and gas has been seen for what it is: unworkable, and a fantasy,” he said.

The OPEC chief blasted many timelines to reach net-zero carbon emissions as having “little regard for energy security, affordability or feasibility.”

Experts say a rapid phase-out of fossil fuels is necessary if global warming is be kept to 1.5 degrees Celsius above preindustrial levels.


UAE and Azerbaijan sign CEPA to expand trade and investment across key sectors 

Updated 10 July 2025
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UAE and Azerbaijan sign CEPA to expand trade and investment across key sectors 

RIYADH: The UAE and Azerbaijan have signed a Comprehensive Economic Partnership Agreement to strengthen bilateral trade, enhance investments, and deepen cooperation in renewable energy, logistics, tourism, and construction. 

The deal is expected to contribute $680 million to the UAE’s gross domestic product and $300 million to Azerbaijan’s economy by 2031, according to the Emirates News Agency, also known as WAM. 

Signed in the presence of UAE President Mohamed bin Zayed Al-Nahyan and Azerbaijani President Ilham Aliyev, the CEPA aims to enhance private sector collaboration, strengthen supply chain resilience, and promote the global expansion of small and medium-sized enterprises. 

It builds on a growing trade relationship between the two countries, with non-oil trade rising 43 percent year on year to reach $2.4 billion in 2024. 

The UAE is also Azerbaijan’s leading Arab investor, with cumulative investments exceeding $1 billion. 

Speaking after the signing, UAE Minister of Foreign Trade Thani Al-Zeyoudi described Azerbaijan as “a hugely valuable trade and investment partner for the UAE,” citing its strategic location and continued economic growth. 

“Our bilateral non-oil trade mirrors this growth, climbing 36.2 percent last year to reach $2.24 billion, which represents 50 percent of Azerbaijan’s trade with the GCC,” he said, according to WAM. 

Al-Zeyoudi said the CEPA would unlock new opportunities across manufacturing, agriculture, and automotive, as well as logistics and financial services. 

He also noted plans to expand UAE investments in energy and renewables through national companies such as ADNOC and Masdar, with the goal of building a joint logistics infrastructure to enhance access to broader regional and global markets. 

Azerbaijan’s agreement adds to the UAE’s expanding CEPA program, a key pillar of its foreign trade agenda that targets $1.1 trillion in non-oil trade by 2031. 

In 2024, the initiative contributed to a record $816 billion in non-oil trade, representing a 14.6 percent increase over the previous year. 

The UAE has now concluded 27 CEPAs with global markets representing more than one-quarter of the world’s population. 

The deal is part of the country’s broader strategy to advance economic diversification through strategic international partnerships, the WAM statement said.

Kuwait and Jordan strengthen ties

Kuwait and Jordan held the fifth session of their Joint Higher Committee in Kuwait City this week. 

Co-chaired by Kuwaiti Foreign Minister Abdullah Al-Yahya and Jordanian Deputy Prime Minister and Minister of Foreign Affairs Ayman Safadi, the session resulted in six cooperation agreements and an executive program spanning the economic, investment, cultural, and tourism sectors, according to Kuwait News Agency.