Pharmaceutical industry growth proving just the pill for Saudi Arabia’s healthcare goals

Pharmaceutical industry growth proving just the pill for Saudi Arabia’s healthcare goals
A key factor in fueling this increase is the increasing localization of the pharmaceutical industry – a strategy which plays into the Kingdom’s economic diversification strategy Vision 2030. (File/Shutterstock)
Short Url
Updated 01 September 2024
Follow

Pharmaceutical industry growth proving just the pill for Saudi Arabia’s healthcare goals

Pharmaceutical industry growth proving just the pill for Saudi Arabia’s healthcare goals
  • According to Statista, the pharmaceuticals market in the Kingdom is anticipated to achieve a revenue of $5.53 billion by 2024
  • Saudi Arabia is set to see a compound annual growth rate of 4.62 percent, resulting in a market volume of $6.93 billion by 2029

RIYADH: As the Saudi government makes substantial investments in healthcare infrastructure, there is a notable increase in the demand for pharmaceuticals in the country.

According to Statista, a German online platform that specializes in data gathering and visualization, the pharmaceuticals market in the Kingdom is anticipated to achieve a revenue of $5.53 billion by 2024.

While significantly lower than the global leader the US – poised to generate $630.3 billion in revenue in 2024 – Saudi Arabia is set to see a compound annual growth rate of 4.62 percent, resulting in a market volume of $6.93 billion by 2029.

A key factor in fueling this increase is the increasing localization of the pharmaceutical industry – a strategy which plays into the Kingdom’s economic diversification strategy Vision 2030.

“While we will have to ascertain the quantified impact of localization on the pharmaceutical industry in Saudi Arabia, we definitely expect it to increase access, reduce cost and make the local pharmaceutical industry more resilient and innovative,” Partha Basumatary, principal in Oliver Wyman’s India, Middle East and Africa Healthcare and Life Sciences Practice told Arab News.

“Localization initiatives have laid the foundation for the Kingdom to become a regional hub of manufacturing for biotech products for the entire Middle East region,” Basumatary added, noting that the Kingdom’s focus on localization for NCD drugs, particularly those targeting type-2 diabetes, is a strong start.    

“To truly maximize its impact, however, the Kingdom needs to expand these initiatives beyond NCDs and encompass other critical areas like cancer, infectious diseases, and auto-immune disorders,” Basumatary said.

According to Matthew Lawrence, director of Pharma and Life Sciences, Operations Transformation Lead at PwC Middle East, the Kingdom’s access to, cost of, and standard of healthcare services have all significantly improved thanks to Saudi Arabia’s transformation of the industry.

As a result of these current localization actions, the pharmaceutical industry in Saudi Arabia will continue to see significant change towards accessibility, quality, and economic impact, Lawrence disclosed.

In terms of accessibility, he told Arab News: “Local production ensures a sustainable economy, reducing reliance on imports, therefore, a stable supply of medications, and faster response time during health crises.”

As for quality, he explained that the Saudi Food and Drug Authority ensures that locally manufactured pharmaceuticals meet high quality standards, which leads to improved healthcare services.

With regard to economic impact, Lawrence noted that the industry’s growth has spurred job creation and attracted investments, aiding in economic diversification.

“According to the Kingdom’s National Biotechnology Strategy, there will be 11,000 job opportunities by 2030, and contribute $34.6 billion to the non-oil GDP, by 2040 - potentially positioning Saudi Arabia as one of the leading global hubs for pharmaceutical manufacturing, research, and innovation,” he said.

“This is a clear testament to the major impact Vision 2030 has created in order to improve the healthcare sector across the Kingdom,” the PwC partner added.

Key steps taken by Saudi Arabia to localize the pharmaceutical industry

In keeping with the Kingdom’s Vision 2030 drive, Saudi Arabia has taken important steps to incentivize local manufacturing.

“First and foremost, it (Saudi Arabia) has offered various incentives to the pharma companies to drive localization, including lower minimum capital requirement, tax incentives, customs duties exemptions etc,” Basumatary said.

“It has also taken steps to improve regulatory approvals for drugs in the country with the introduction of abridged verification and registration processes,” he added, before going on to explain how the Kingdom has also developed a framework to favor locally manufactured products for tenders.

The Oliver Wyman principal highlighted successful examples of localization, such as Boehringer Ingelheim’s partnership with Alpha Pharma for localization of a Type-2 diabetes product in Saudi Arabia.

“Other notable examples include MSD’s partnership with Jamjoom Pharma to localize another Type-2 diabetes drug sitagliptin phosphate. Such initiatives will help the industry to become more resilient when it comes to future outbreaks such as COVID-19,” Basumatary said, adding: “It would also sow the seeds for future innovation and growth of the domestic pharma industry, including potentially giving a positive push to the Kingdom’s aspirations of becoming a regional biotech hub.”

Government support

As expected, the Saudi government plays a pivotal role in accelerating the localisation of the pharmaceutical industry and is already investing in driving strategic programs to advance the healthcare system:

From Oliver Wyman’s perspective, Basumatary said: “As observed in other geographies, Singapore government’s stable policy framework, favorable incentives, and access to knowledge/talent motivated BionTech to establish a state-of-the-art mRNA manufacturing facility in the country.”

The principal further noted that the pharmaceutical industry expects enhanced market accessibility, support for localization, and strong IP protection when it comes to making localization decisions.

“Saudi Arabia’s involvement and support has delivered an impact as we have seen from the recent pharma localization initiatives. It will, however, be critical to continue innovating on that front, as the competition for such localization initiatives continues to increase globally and regionally,” he underlined.

PwC Middle East’s Lawrence revealed that some of the notable government efforts include favorable policies like tax incentives and labor laws to incentivize research and development as well as manufacturing.

They also entail enabling regulatory frameworks to drive life science sector growth, with measures around strong intellectual property laws, patent protection, mutual recognition agreements to facilitate market access, and competition laws.

Other initiatives include not-for-profit funding, such as targeted grants, to incentivize research, as well as public financing such as subsidies or incentives to enable long-term growth of the healthcare ecosystem.   

“The government's ongoing commitment to localization is a clear long-term strategic plan, building on Vision 2030. The alignment of government policies with Vision 2030 goals underscores their influence in driving the progress of pharmaceutical localization across the Kingdom,” Lawrence said.

“These policies and initiatives will not only attract future investment but also foster innovation, build local capabilities, and ultimately contribute to the sustainable growth of the healthcare sector,” he added.

Looking to the future

In recent years, Saudi Arabia has intensified its focus on life sciences and has made substantial advancements to align with the objectives of Vision 2030.

This has involved endeavors to enhance the overall health and well-being of individuals, promote economic expansion and diversity, reinforce the Kingdom's global leadership in the sector, stimulate innovation, and enhance patient outcomes and quality of life.

According to Lawrence, one of the key initiatives contributing to the advancements of the life science industry is national biotechnology strategy.

“This helps to develop end-to-end vaccine manufacturing, establish biotechnology platform for biologics and biosimilars, and expands genomics programs for preventative medicine,” Lawrence told Arab News.

The PwC partner also shed light on the Healthcare Sector Transformation Program, explaining that it is responsible for strategizing the Kingdom’s resilient supply chain through different initiatives that help in enabling the localization of the pharmaceutical industry.

Other key players include the Local Content and Government Procurement Authority, which works on enhancing awareness and participation in local content and provides knowledge-based policies and tools, as well as the National Industrial Development and Logistics Program which focuses on expanding the pharmaceutical manufacturing sector.

It also includes incentives for local and international companies to establish production facilities in Saudi Arabia.

The Saudi Food Drug Administration is also playing a pivotal role as it enhances regulatory frameworks to help speed up the approval process for new drugs and encourage innovation in local pharmaceutical production.

Pharmaceuticals and Vision 2030

The strategic initiatives of the pharmaceutical industry are closely aligned with the Kingdom’s Vision 2030 goals, echoing ambitions in economic diversification, job creation, and innovation, as well as technology transfer and self-sufficiency.

“Life science sector expansion is expected to create thousands of jobs, helping to reduce unemployment rates among Saudis, particularly in high-skilled areas. Encouraging partnerships and collaboration leads to technology transfer and innovation,” Lawrence said.

With regards to self-sufficiency, the PwC partner noted that localizing pharmaceutical production ensures a stable supply of essential medicines and reduces the health sector's vulnerability to global supply chain disruptions.

“These initiatives are aligned with Vision 2030 goals as they contribute to the Kingdom’s economic growth, job creation and localization initiatives for Saudi nationals, as well as the enhancement of healthcare services across the country,” he said.

“By localizing the pharmaceutical industry and expanding these initiatives, Saudi Arabia can further improve healthcare accessibility, reduce healthcare costs, and ensure sustainability in the healthcare demands of its growing population,” Lawrence said.


Saudi Arabia, Oman sign MoU to further strengthen economic ties

Saudi Arabia, Oman sign MoU to further strengthen economic ties
Updated 10 October 2024
Follow

Saudi Arabia, Oman sign MoU to further strengthen economic ties

Saudi Arabia, Oman sign MoU to further strengthen economic ties

JEDDAH: Saudi Arabia and Oman have signed a memorandum of understanding aimed at bolstering economic and planning cooperation based on mutual interests.

The agreement was finalized on Thursday in Riyadh, with Saudi Minister of Economy and Planning Faisal Al-Ibrahim and his Omani counterpart, Said bin Mohammed Al-Saqri, signing a five-year commitment focused on enhancing medium- and long-term economic planning, studies, and modeling, alongside monetary policies and strategies.

The pact highlights a commitment to promoting a green and circular economy, as stated by the Saudi Ministry of Economy and Planning.

Trade between Saudi Arabia and Oman reached SR36.8 billion ($9.81 billion), with Saudi exports accounting for SR22.5 billion, reflecting the growing economic ties between the two nations.

Implementation of the cooperation outlined in the memorandum will involve the exchange of information, experiences, and studies, as well as mutual visits by experts and specialists. The agreement also includes plans for hosting conferences, seminars, and workshops.

The Saudi ministry emphasized that such memorandums would enhance cooperation among Gulf Cooperation Council countries and strengthen bilateral relations between Saudi Arabia and Oman.

On Oct. 9, Saudi Commerce Minister Majid Al-Qasabi welcomed Al-Saqri and his delegation, discussing ways to enhance trade and economic partnerships while addressing various economic topics to boost intra- and external trade among GCC members.

Al-Qasabi underscored that the nation’s economic reforms, guided by Crown Prince Mohammed bin Salman as part of Vision 2030, are designed to implement structural changes that promote sustainable economic growth, leveraging significant developmental opportunities within the Kingdom.

He noted that these reforms have improved the business environment and elevated Saudi Arabia’s global competitiveness, as evidenced by positive international economic indicators.

In April, a MoU was signed between the Kingdom and Oman during a meeting between Sultan bin Salem Al-Habsi, Oman’s minister of finance, and Sultan Abdulrahman Al-Marshad, CEO of the Saudi Fund for Development. Discussions during that meeting focused on cooperation mechanisms between Oman and the fund, as well as updates on collaborative development projects.

The primary objective of these efforts is to enhance the industrial and logistical sectors in Oman, providing essential services to encourage private sector investment in line with the country’s Vision 2040, as reported by the Omani News Agency.

The memorandum is part of broader initiatives aimed at supporting developmental efforts in Oman, including infrastructure, higher education, vocational training, and projects in industry, mining, transportation, communications, and energy sectors.


Closing Bell: Saudi main market closes in green at 11,995.22

Closing Bell: Saudi main market closes in green at 11,995.22
Updated 10 October 2024
Follow

Closing Bell: Saudi main market closes in green at 11,995.22

Closing Bell: Saudi main market closes in green at 11,995.22

RIYADH: Saudi Arabia’s Tadawul All Share Index rose on Thursday, gaining 66.89 points, or 0.56 percent, to close at 11,995.22. 

The total trading turnover of the benchmark index was SR5.85 billion ($1.56 billion) with 185 of the listed stocks advancing and 39 declining. 

The MSCI Tadawul Index also gained 8.14 points to close at 1,504.4.

Similarly, Saudi Arabia’s parallel market gained 69.81 points to close at 24,522.95. 

The primary driver behind the main index’s positive performance was Arab Sea Information System Co., whose share price surged by 9.9 percent to SR7.44. 

On Oct. 9, the company announced the resignation of board member Turki bin Nasser Al-Dahmash, effective immediately. 

Al-Dahmash stepped down for personal reasons after serving on the board for just over a year. 

This comes amid other strategic shifts within the firm, as Arab Sea continues to focus on expanding its technological services, particularly through its newly established cloud computing unit, Era Data, which launched in 2023 with a capital of SR5 million.

Other top performers in the main market include Thob Al Aseel Co. and Al-Baha Investment and Development Co., as their share prices soared by 9.09 percent and 7.69 percent to SR4.80 and SR0.42, respectively. 

Thob Al Aseel Co., a prominent Saudi company specializing in traditional clothing, has been making significant financial strides in 2024. For the first quarter of the year, the firm reported a net profit increase of 44 percent, reaching SR40.1 million. 

This growth was driven by a rise in sales and improvements in profit margins, particularly from high-demand items. Revenue grew by 10.9 percent, and gross income jumped by 21.3 percent, reflecting the company’s strong performance amid increasing market demand.

The worst performer on the benchmark index was Herfy Food Services Co. The firm’s share price dropped by 4.11 percent to SR26.8. 

Recently, Herfy Food Services Co. has been in the spotlight due to internal corporate tensions. The company’s largest shareholder, Savola Group, which holds a 49 percent stake, has requested a shareholder vote to dismiss a board member, Mohammed Abdulaziz Al-Shetwey.

This move is part of an ongoing dispute between Savola and Herfy’s management, raising concerns about governance issues within the company. The shareholder meeting, scheduled for November, will address this matter alongside other significant agenda items.


Middle East conflict poses risk to regional sovereign credit ratings: S&P

Middle East conflict poses risk to regional sovereign credit ratings: S&P
Updated 10 October 2024
Follow

Middle East conflict poses risk to regional sovereign credit ratings: S&P

Middle East conflict poses risk to regional sovereign credit ratings: S&P
  • Increased instability could impact regional governments’ economic outlook and financial stability
  • Although Lebanon remains in default, its economic and recovery prospects have further deteriorated

RIYADH: The ongoing conflict in the Middle East threatens to undermine sovereign credit ratings across the region if it escalates, according to S&P Global. 

The agency warned that increased instability could impact regional governments’ economic outlook and financial stability, with broader implications for creditworthiness depending on the conflict’s trajectory. 

While the immediate effects have been largely contained to specific areas, there are growing concerns that prolonged geopolitical tensions could lead to broader economic disruption across the region, it added. 

“So far, the sovereign credit impact of the conflict has been confined to the two rated sovereigns directly involved in the conflict: Israel and Lebanon. However, we now foresee several potential pathways via which the conflict could have a more material credit impact on the rest of the region,” said S&P Global. 

Its rating on Israel is now two notches lower than on Oct. 7, 2023, reflecting weaker fiscal and growth expectations through 2025, along with significantly heightened security risks. 

The agency also indicated that, although Lebanon remains in default, its economic and recovery prospects have further deteriorated. 

The report said that key areas of vulnerability include energy prices, trade route security, and capital flows, all of which could face heightened pressure if the conflict continues into 2025 as expected. 

The agency also said that the persistent uncertainty is likely to weigh on investor confidence, potentially leading to capital outflows and increased volatility in regional markets. 

While the geopolitical tensions have so far had a limited direct impact on the credit metrics of most Middle Eastern sovereigns, S&P said the potential for wider regional economic stress is growing. 

The conflict could affect key economic indicators such as growth, tourism revenues, remittances, and fiscal balances, depending on how the situation evolves. 

Countries more dependent on stable energy prices or vulnerable to trade disruptions, such as energy importers, could face more pronounced fiscal risks, while oil exporters in the Gulf may benefit from rising oil prices in the short term, it added. 

“Such trade disruptions could be a key challenge for the region, with the potential to increase oil prices and pose fiscal risks to energy importers, although higher oil prices could mitigate the risk for Gulf exporters particularly if the risks of export routes being blocked or oil production facilities being disrupted, remain contained,” added S&P. 

It said sovereign credit ratings in the region are already factoring in elements of geopolitical risk, but the current conflict could amplify these risks and lead to further rating downgrades. 

“Further, we now view the conflict as more complex and unpredictable and consider it more likely to persist well into 2025, with potentially lingering aftereffects,” added S&P. 


Oman’s public revenues see annual rise of 2.3%

Oman’s public revenues see annual rise of 2.3%
Updated 10 October 2024
Follow

Oman’s public revenues see annual rise of 2.3%

Oman’s public revenues see annual rise of 2.3%
  • Net oil revenues reached an estimated 4.65 billion by the end of August
  • Average achieved oil price reached $83 per barrel

RIYADH: An increase in Oman’s net oil revenues drove a 2.3 percent year-on-year rise in public earnings, reaching 8.12 billion Omani rials ($21.07 billion) between January and the end of August, according to new figures. 

The monthly bulletin issued by the Ministry of Finance said that net oil revenues reached an estimated 4.65 billion rials by the end of August, reflecting a 12 percent surge compared to the same period last year.  

The growth in figures suggests vibrant and expanding economic activity, with more funds circulating within the country. 

Oman’s public revenue saw an annual decline of 2 percent year on year in the second quarter, reaching $16.1 billion, the country’s news agency reported in August.  

The sultanate’s economic landscape is heavily influenced by its reliance on oil and gas revenues, making it vulnerable to global price fluctuations.  

The government has been actively working to diversify the economy and reduce dependence on hydrocarbons as part of its Vision 2040 plan. 

The bulletin further showed that the average achieved oil price reached $83 per barrel, while the average oil production amounted to about 1.1 million barrels per day. 

The increase in net oil revenues is attributed to the methodology used by the government-owned firm Energy Development Oman to collect crude earnings and manage cash liquidity.

Net gas revenues reached 1.43 billion rials, reflecting a 15 percent drop by the end of August compared to the corresponding period in 2023. This is due to the change in the methodology for collecting gas revenues.

Current earnings collected until the end of August also decreased by 104 million rials compared to the same period last year to reach about 2.23 billion rials.

The bulletin also revealed that public spending until the end of August amounted to 7.66 billion, an increase of 7 percent compared to actual expenditure during the same period of 2023.

The most prominent expense is the current civil ministry fees, which amounted to 5.43 billion rials, down by 30 million rials compared to the same period in 2023.

Development expenditures of ministries and civil units amounted to 735 million rials by the end of August, with a disbursement rate of 82 percent of the total development liquidity allocated for 2024, which amounted to 900 million rials.

Total contributions and other expenditures amounted to 1.44 billion rials, up by 58 percent year on year. This is primarily owed to the implementation of the social protection system this year.

Support for the social protection system, electricity sector, and petroleum products until the end of August amounted to about 373 million rials, 295 million rials, and 191 million rials, respectively, while the transfer to the debt repayment provision amounted to 266 million rials.

With regard to global and local economic performance, the bulletin explained that the Organization for Economic Co-operation and Development indicated in its interim outlook report issued in September that global growth is expected to stabilize at 3.2 percent in 2024 and 2025, in line with the average increase rate observed during the first half of this year.

The organization also suggested that the delayed impact of tightening monetary policy in the economies of advanced countries has begun to moderate, in addition to easing monetary policies and lower inflation that will support interest rates in 2025. It also disclosed that the inflation rate decline will provide additional support to the growth of real per capita income and private consumption in many economies.

Regarding global oil markets, the bulletin stated that according to the US Energy Information Administration’s Short-Term Energy Outlook report in September, the average price of Brent spot crude is expected to reach about $83 per barrel in 2024, while the average price of Brent spot crude is expected to reach $84 per barrel in 2025.

As for the local economy, S&P raised its credit rating for the Sultanate of Oman to “BBB-” with a stable outlook in its report issued in September, placing it in the first degrees of the investment worthiness index after seven years.

This is due to the continued measures to improve public finances through development initiatives and efforts in the financial and economic sectors and government restructuring. This contributed to restoring the monetary balance between revenues and public spending as intended in the medium-term plan.

This comes in addition to the government’s commitment to reducing the state’s public debt, managing government companies, and decreasing indebtedness.

The agency expected that Oman would achieve moderate financial surpluses of 1.9 percent during the period from 2024 to 2027, growth in real gross domestic product of about 2 percent annually, and record financial surpluses in the current balance of 1.2 percent of GDP.


Riyadh’s residential transactions soar 52% as Saudi housing market flourishes 

Riyadh’s residential transactions soar 52% as Saudi housing market flourishes 
Updated 10 October 2024
Follow

Riyadh’s residential transactions soar 52% as Saudi housing market flourishes 

Riyadh’s residential transactions soar 52% as Saudi housing market flourishes 

RIYADH: Saudi Arabia’s residential market witnessed a 51.6 percent surge in transactions in Riyadh over the year to the end of the second quarter of 2024, a new analysis showed, as the sector continues its robust growth. 

According to a report by real estate services firm CBRE, the capital city recorded 18,500 sales valued at SR26.6 billion ($7.08 billion) during this period, and the Kingdom’s residential market is set for further growth, fueled by population increases and government-backed investment projects. 

Jeddah also experienced a significant rise in transaction volumes, rising 43.2 percent year on year to 9,392 sales, while the Dammam Metropolitan Area saw a 22.4 percent increase, totaling 2,390 sales worth SR2.4 billion. 

Under Vision 2030, Saudi Arabia aims to achieve a 70 percent home ownership rate by the end of the decade. To support families in reaching this goal, the Kingdom has established the Sakani program, which offers personalized housing and financing solutions. 

Matthew Green, head of research Middle East and North Africa in CBRE, said: “The fundamentals for Saudi Arabia’s residential sector remain incredibly strong, as reflected in the sustained rental growth across key markets in the Kingdom.”  

He added: “Riyadh particularly is demonstrating attributes of an undersupplied market, driven by strong employment and population growth on the back of government investment projects, resulting in very tight supply in certain areas of the market as new deliveries fail to keep pace with the robust housing demand.” 

In the first half of 2024, Riyadh’s total residential rental transactions rose 6.1 percent to 274,146, while Jeddah saw a 2.3 percent year-on-year decline in rental transactions, totaling 183,894. 

Average apartment prices in the Saudi capital have appreciated approximately 11.7 percent annually since the third quarter of 2020, reaching SR5,000 per sq. meter by the end of the second quarter of 2024. 

“Average villa prices have also generally been on an uptrend since 2019 despite encountering a brief dip in early 2020 and again in early 2021, when values dropped 4.8 percent to SR3,820 per sq. meter, while prices have seen robust growth, with average villa values now resting around SR5,824 per sq. meter at the end of June, after rising 3.3 percent year-on-year,” said CBRE. 

In Jeddah, average apartment prices peaked before a 0.9 percent dip in the second quarter of 2024, now sitting at SR3,945 per sq. meter, while villa prices have seen a compound annual growth rate of 4.4 percent since 2020, reaching SR5,707 per sq. meter, according to CBRE. 

The analysis also highlighted that a segment of the population is seeking ideal financing options for suitable mortgage provisions to facilitate home acquisition, despite government efforts to enhance retail financing facilities through local banks. 

Highest priced districts 

The report identified Hittin and Al-Malqa as Riyadh’s most expensive districts for villas, with prices ranging from SR9,500 to SR13,500 per sq. meter. This was followed closely by Al-Malqa district with SR8,000 to SR12,900 per sq. meter. 

“At the other end of the spectrum, districts such as As-Suwaidi and Al Aziziyah commanded the lowest prices, with average villa prices ranging from SR2,150 per sq. meter to around SR4,800 per sq. meters in As-Swuaidi and SR2,200 per sq. meter, to SR4,050 per sq. meter in Al-Aziziyah,” added CBRE. 

The report noted that popular districts in Riyadh, such as As-Sulimaniyah, Al-Taawun, and An Nakheel, continue to command the highest average apartment prices.

In As-Sulimaniyah, the average sale price for apartments ranges from SR6,600 to SR10,500 per sq. meter, while in An Nakheel, prices average between SR7,200 and SR10,300 per sq. meter.

“The best value was to be found in districts such as Dar Al-Baida and Al Aziziyah, with prices ranging from SR1,900 per sq. meter to around SR3,250 per sq. meter and SR2,700 per sq. meter to SR 4,200 per sq. meter respectively across the two neighborhoods,” added CBRE. 

In Jeddah, the Ash Shati and Al-Murjan districts command the highest villa prices, with ranges from SR7,500 to SR13,350 per sq. meter. Conversely, areas like Al-Amir Fawwaz present more budget-friendly options starting at SR2,300 per sq. meter. 

CBRE reported that branded residences along the Red Sea command the highest values in prominent districts like Obhur Al-Junobiyah, with rates ranging from SR4,700 to SR7,400 per sq. meter. 

“The steady delivery of new apartments into Jeddah’s residential market over the past 18 months has resulted in significant fluctuation in average apartment sale prices,” said CBRE. 

It added: “The large quantum of new supply in districts such Al-Marwah, As Salamah and As Safa has resulted in saturating of the segment, skewing average prices. Branded residences along the Red Sea continue to command the highest values in prominent districts like Obhur Al-Junobiyah, whilst the lowest sale prices are found in Ar Rayyan.” 

As investment projects and population growth further stimulate the sector, Riyadh, Jeddah, and the Dammam Metropolitan Area are positioned for continued expansion, making real estate a vital component of the Kingdom’s economic diversification strategy under Vision 2030.