Population growth, regulatory reforms and tourism reshaping Saudi real estate sector

Strengthening the real estate sector is key for Saudi Arabia as it seeks to diversify its economy, Shutterstock

Short Url

https://arab.news/munnb

Updated 16 March 2025

Nirmal Narayanan

March 14, 2025 14:25

Population growth, regulatory reforms and tourism reshaping Saudi real estate sector

Updated 16 March 2025

Nirmal Narayanan

March 14, 2025 14:25

RIYADH: Saudi Arabia’s real estate sector is poised for robust expansion thanks to an increasing population, growth in the tourism industry, and friendly government policies and regulatory reforms, experts told Arab News.

The Kingdom’s Real Estate General Authority expects the property market to reach $101.62 billion by 2029, with an anticipated compound annual growth rate of 8 percent from 2024.

Strengthening this sector is crucial for Saudi Arabia as it seeks to position itself as a global hub for tourism and business, by reducing its decades-old reliance on crude revenues.

Speaking to Arab News, Matthew Green, head of research at CBRE in the Middle East and North Africa region, said that the expansion of the Kingdom’s real estate market is also influenced by various other factors including rapid urbanization, infrastructure development, and the rise in foreign direct investments.

“Saudi Arabia’s real estate market is supported primarily by the government’s aggressive investment program, particularly toward the giga-projects, which is driving non-oil production, fueling employment and population growth, and attracting FDI,” said Green.

He added: “The country’s supportive demographics, which are characterized by the presence of a significant young and well-educated population, increasingly liberalized, and a rising middle class with greater disposable income levels than previous generations is also driving the growth of the real estate market in the Kingdom.”

CaptionMatthew Green, head of research at CBRE in the Middle East and North Africa region. Supplied

Saud Al-Sulaimani, country head of JLL in Saudi Arabia, echoed those views and said that government policies, including the Sakani program and Real Estate Investment Trusts — as well as new mortgage laws and foreign ownership regulations — are propelling the growth of the property sector.

“Sakani program supports home ownership by providing financial aid and land to Saudi citizens, while REITs encourage institutional investment in the sector,” he said.

“Relaxed ownership laws are making the Kingdom’s real estate market more attractive to international investors. All these factors are driving the growth of the real estate sector in the Kingdom.”

Founded in 2017 by the Saudi Ministry of Housing and the Real Estate Development Fund, the program aims to increase the proportion of families that own a home in the Kingdom to 70 percent by 2030, in line with the economic diversification strategy Vision 2030.

Saud Al-Sulaimani, country head of JLL in Saudi Arabia. Supplied

In January, Saudi Arabia’s Capital Market Authority approved foreigners to invest in Saudi-listed companies owning real estate in Makkah and Madinah.

Effective from Jan. 27, the amendment aims to boost the capital market’s competitiveness and align with the Vision 2030 economic diversification objectives, the authority said in a statement.

“The landmark change to allow international investors to access the property markets in the Holy Cities through listed companies, announced this week, will help to begin addressing the pent-up demand from international investors hungry to access real estate markets in the Kingdom’s Holy Cities,” Faisal Durrani, head of research at Knight Frank, told Arab News.

He added: “This change in investor rules, combined with last January’s introduction of Premium Residency Visas, one of which is connected to property ownership, is a clear indication of the direction of travel and the strongest hint yet of authorities’ plans around boosting inward international real estate investment.”

Faisal Durrani, head of research at Knight Frank. Supplied

Susan Amawi, general manager of Knight Frank in Saudi Arabia, said that construction activities in Saudi Arabia are expected to rise in the coming years with the Kingdom targeting to deliver 1.04 million homes by the end of the decade.

“Government programs such as Wafi and Sakani have pushed the national homeownership rate to around 64 percent; however surging home values are testing the limits of affordability. With plans underway to deliver 1.04 million homes across the country by 2030, we expect to see a significant ramping up in construction activity and jobs as the 2030 deadline nears,” said Amawi.

Regional headquarters program driving growth

Al-Sulaimani told Arab News that the regional headquarters program is one of the crucial factors acting as a catalyst for growth of the commercial real estate sector in the Kingdom.

“The program has led to increased demand for high-quality office spaces and mixed-use developments, spurring investments across key industries, including offices, hospitality, and data centers,” he said.

The JLL official added: “This influx of international businesses is reshaping real estate dynamics, with an increased focus on smart technologies, sustainability, and specialized assets, creating a thriving environment for global talent.”

Saudi Arabia’s Minister of Investment Khalid Al-Falih presented IBM executives with a regional HQ license in April 2024. IBM

Knight Frank’s Amawi said that the strong economic growth in the Kingdom, combined with the regional headquarters program has driven up demand levels for premium office space, while vacancy rates have approached record lows of around 2 percent in Riyadh.

“Office rents for Grade A space in Riyadh too have responded to the sharp upturn in occupier requirements, rising by 51 percent in the last three years alone,” said Amawi.

Real estate and tourism

Durrani said that Saudi Arabia’s ambition to attract more than 150 million visitors by the end of the decade is creating several opportunities in the hospitality real estate sector.

“For domestic tourism to flourish in Saudi Arabia, care and attention must be paid to the development of attractions in secondary and tertiary cities if they are to compete and thrive alongside all the new giga-project hospitality offerings,” he said.

Durrani added that cost-effective accommodation facilities are needed to meet the demand of travelers and address the issue of expensive stays.

“With 28 percent of Gen Z Saudis highlighting high costs as a barrier to domestic travel … so there remains an opportunity to develop more cost-effective accommodation options,” added Durrani.

Green of CBRE echoed similar views and said that diverse accommodation options are crucial to strengthening the real estate sector in the Kingdom.

He flagged the need for a mix of hotel rooms, long stay suites, private unit rentals — such as Airbnb — as well as lower cost hostels and other budget-friendly room options.

Al-Sulaimani said that the launch of high-profile and futuristic mega and giga-projects attracted global attention and investments, and symbolizes a progressive shift in Saudi urban development.

“The focus on tourism and entertainment, alongside massive investments in infrastructure, from transportation to utilities and logistics, are creating a more conducive environment for real estate development,” said the JLL official.

Real estate and technology

Al-Sulaimani added that the adoption of new technologies and digital solutions is critical to streamlining operations and boosting the efficiency of the Saudi property landscape.

He said advanced technologies to create smart, sustainable, and highly efficient urban environments are fueling innovations and unlocking new growth opportunities for property tech in the Kingdom.

“Companies can leverage AI and data analytics to enhance transparency, improve decision-making, and predict market trends. The development of smart cities focuses on integrating IoT and sustainable technologies, offering residents an improved quality of life,” said Al-Sulaimani.

Green shared that view, and said improving customer experience and service through technology adoption should be a key target for all companies operating in the real estate sector.

“In the context of the real estate market, the use of virtual and augmented reality for property tours and AI-powered chatbots for instant support and more personalized feedback are becoming more common globally but continue to lag in parts of the region,” said Green.

He added: “In addition, generating efficiencies and streamlining operations through use of property management software and better integration of smart building technologies can also enhance property value and tenant comfort.”

Uniqueness of Saudi Arabia’s real estate sector

Speaking with Arab News, experts unanimously highlighted the uniqueness of the housing sector in Saudi Arabia.

“The Kingdom’s real estate market is one of the fastest growing globally and certainly of the most exciting. The opportunity for investors continues to grow as the government unveils ever more ambitious projects, designed to spur economic growth in the non-oil sector and to also showcase Saudi Arabia’s arrival on the global investment stage,” said Amawi.

Green said that the ongoing construction of giga-projects gives the Kingdom’s real estate sector an upper hand compared to other countries in the region.

The CBRE official added that Saudi Arabia’s rich cultural heritage is also a further standout for tourism-related developments, creating a unique opportunity to establish a tangible cultural tourism offering in the region.

“The size and scale of the Saudi’s giga-projects remain a notable differential against other regional markets, with the Kingdom still very much in its nation-building stage against more mature real estate markets in the UAE,” said Green.

Topics: real estate SAUDI REAL ESTATE Regional HQ program

Saudi finance firms lending surges to $26bn in 2024

Updated 19 April 2025

Dayan Abou Tine

April 19, 2025 23:17

Saudi finance firms lending surges to $26bn in 2024

Finance sector is evolving rapidly, with the emergence of fintech-driven players complementing traditional non-bank lenders

Updated 19 April 2025

Dayan Abou Tine

April 19, 2025 23:17

RIYADH: Credit provided by finance companies in Saudi Arabia rose to SR96.26 billion ($25.67 billion) in 2024, marking a 13.6 percent increase compared to the previous year, according to the latest figures from the Saudi Central Bank.

Personal finance led the way, accounting for 29 percent of total lending, or SR27.6 billion. Auto financing followed closely at 26 percent (SR25.16 billion), while residential real estate loans comprised 24.27 percent, amounting to SR23.36 billion.

Although it represents a smaller share of total lending, credit card finance recorded the most significant growth, surging 52.4 percent year on year to SR1.92 billion.

Commercial real estate financing also saw robust expansion, rising 20 percent to SR4.92 billion. Auto and personal loans maintained solid momentum, growing by 18.8 percent and 18.6 percent, respectively.

The retail segment — including personal, auto, housing, and credit card financing — continued to dominate the portfolios of finance companies in 2024. Lending to micro, small, and medium-sized enterprises also played a key role, representing approximately 19 percent of total credit. This is nearly double the share of MSME lending seen among traditional banks.

In contrast, financing for large corporations remained limited, as major firms continued to rely on bank loans or capital markets to meet their funding needs.

Profitability in the sector also improved markedly according to SAMA data. Net income rose by 72.13 percent to SR2.86 billion, while return on assets increased from 2.59 percent in 2023 to 4.13 percent in 2024. Return on equity reached 9.58 percent, up from 6.97 percent the previous year.

The expansion of finance companies in Saudi Arabia has been bolstered by regulatory reforms aimed at promoting financial inclusion and boosting competition. (SPA)

Together, these trends indicate growing confidence in the sector, increased borrower demand, and improved cost management — factors that position finance companies for further expansion, particularly in underserved and fintech-driven lending segments.

In recent years, finance companies in Saudi Arabia have played an increasingly important role in expanding credit access, particularly for underserved segments such as SMEs and individuals outside the traditional banking network.

The expansion of finance companies in Saudi Arabia has been bolstered by regulatory reforms aimed at promoting financial inclusion and boosting competition. A significant milestone came in January 2023, when SAMA amended Article 8 of the Implementing Regulation of the Finance Companies Control Law, lowering the minimum paid-up capital requirement for firms focused on financing SMEs to SR50 million. The move was intended to attract investors and encourage the launch of specialized finance firms serving the SME sector.

In a further push to support fintech innovation aligned with the Kingdom’s Vision 2030, SAMA also set a minimum capital threshold of SR5 million for Buy-Now-Pay-Later providers.

These policy changes have led to a noticeable uptick in market participation. By the end of 2024, SAMA had licensed 62 finance companies operating across various segments, including personal finance, mortgage lending, leasing, and fintech-based services.

Despite representing just 3.26 percent of total lending in Saudi Arabia — compared to SR2.96 trillion in bank loans — finance companies are playing an increasingly vital role in the Kingdom’s financial ecosystem.

Unlike commercial banks, which benefit from extensive deposit bases and corporate lending capacity, finance companies are non-deposit-taking institutions that often serve niche or underserved markets.

Interest rates offered by finance companies typically exceed those of traditional banks, reflecting differences in funding sources and borrower risk profiles. While banks draw from low-cost deposits and operate with greater economies of scale, finance companies depend on equity, interbank loans, or capital markets for funding.

As a result, their annual percentage rates tend to be higher, especially when serving higher-risk customer segments.

Fintech expands footprint

Saudi Arabia’s finance sector is evolving rapidly, with the emergence of fintech-driven players complementing traditional non-bank lenders.

Among the most notable additions to the landscape are debt-based crowdfunding platforms, which are regulated by SAMA under the finance companies’ framework.

Unlike conventional finance companies such as Nayifat or Bidaya, which lend directly using their own capital and assume full credit risk, these platforms act as intermediaries.

They connect retail or institutional investors with borrowers — often micro and small enterprises — allowing investors to fund loans directly. The platforms themselves earn fees for facilitating the transactions, while the credit risk is borne by the investors, not retained on the platform’s balance sheet.

This innovative model is helping to bridge financing gaps for SMEs and underserved communities, in line with the Vision 2030 objective of expanding financial access and economic participation.

In a related move that highlights the sector’s momentum, Tamara Finance Co. became the latest company to receive SAMA licensing in March, bringing the total number of licensed finance companies in the Kingdom to 65.

The company was approved to offer consumer finance and BNPL services, further reinforcing SAMA’s commitment to fostering financial innovation.

Tamara, Saudi Arabia’s first fintech unicorn, achieved a $1 billion valuation in 2023 following a $340 million Series C funding round. Its rise coincides with a sharp increase in BNPL adoption across the Kingdom.

A 2024 report by rival platform Tabby revealed that 77 percent of Saudi consumers now use BNPL services — often for essential expenses such as education, healthcare, and insurance — challenging the perception that BNPL is primarily for discretionary spending. These developments underscore SAMA’s broader strategy to diversify credit sources, enhance consumer access to financing, and drive the shift toward a digital, cashless economy under Vision 2030.

Topics: finance companies Saudi Arabia

AI-powered telemedicine reshapes Saudi healthcare landscape

Updated 19 April 2025

Miguel Hadchity

April 19, 2025 23:05

AI-powered telemedicine reshapes Saudi healthcare landscape

Kingdom is accelerating the deployment of AI technologies, fundamentally reshaping how healthcare is delivered

Updated 19 April 2025

Miguel Hadchity

April 19, 2025 23:05

RIYADH: Saudi Arabia is fast positioning itself as a regional pioneer in artificial intelligence-driven healthcare, harnessing telemedicine and digital innovations to modernize its medical infrastructure and widen access to care —particularly in remote and underserved regions.

Guided by its ambitious Vision 2030 agenda and bolstered by rising investments in digital health, the Kingdom is accelerating the deployment of AI technologies, fundamentally reshaping how healthcare is delivered, managed, and experienced.

Vikas Kharbanda, partner and healthcare sector lead at Arthur D. Little Middle East, told Arab News that AI-driven telemedicine is allowing providers to move from reactive care to proactive health management, which is particularly important in remote areas where “physical infrastructure is difficult and costly to develop and operate.”

Historically, access to healthcare across the Arab world has been uneven, with rural populations often lacking access to specialized services. In Saudi Arabia, however, AI-enabled platforms are helping bridge these gaps by facilitating remote consultations, optimizing clinical workflows, and supporting early detection of disease.

One of the Kingdom’s flagship initiatives is the Seha Virtual Hospital, a fully digital facility that leverages AI for diagnostics and links medical specialists across various locations for real-time consultations. Kharbanda described Seha Virtual Hospital as “a starting point of showcasing the full spectrum capabilities of what is possible with the convergence of digital capabilities into the healthcare environment.”

“With rapidly emerging capabilities for virtual consultations, e-ICU, digital prescriptions and dispensing workflows, AI-enabled diagnoses augmentation the program is starting to demonstrate the potential of what a virtual care delivery model can potentially achieve and the value it can create for a health system,” he said.

Kharbanda added that the hospital “has created a platform from which individual capabilities can be picked and diffused in the whole health system — commercializing the infrastructure capabilities from the public sector into the private sector could help diffuse these capabilities very rapidly into the whole system.”

Another initiative is Nala, a digital platform that began using AI in 2022 to offer personalized care recommendations based on individual data. Nala integrates with wearables to monitor vital signs and flag potential health risks. In 2023, it was acquired by Integrative Health, a network of AI-led urgent care centers in the Kingdom.

Tech-enabled outreach

Telemedicine remains a cornerstone of Saudi Arabia’s digital health strategy. Virtual consultations are helping to ease the burden on hospitals and clinics by enabling patients to connect with healthcare professionals remotely—eliminating the need for travel and streamlining access to specialized care.

“Telemedicine could be a major enabler for access and AI capabilities, especially focused on health risk assessments, enabling remote diagnosis, triaging capabilities and potentially bringing together the financing and care delivery model in a more systematic fashion could fundamentally shift the way health and care is managed today in the market,” Kharbanda added.

Telemedicine could be a major enabler for access and AI capabilities, especially focused on health risk assessments, enabling remote diagnosis, triaging capabilities and potentially bringing together the financing and care delivery model in a more systematic fashion.

Vikas Kharbanda, partner and healthcare sector lead at Arthur D. Little Middle East

High smartphone penetration and widespread internet access have supported the uptake of these tools. Babylon Health, in partnership with Saudi Telecom Co., offers an AI-based app for symptom checking and consultations, while local platform Cura provides similar services with remote diagnosis and digital prescriptions.

AI: the game changer

Artificial intelligence is also being deployed to support clinical decision-making, personalize treatment plans, and deliver predictive insights that can improve patient care. Hospitals across Saudi Arabia are increasingly incorporating machine learning to optimize operations and enhance health outcomes.

According to a report by GlobalData, AI-powered monitoring systems are now in use in many healthcare facilities across the Kingdom. These systems utilize real-time analytics and sensor technologies to boost patient safety and alleviate staffing pressures—offering a glimpse into how smart technology is reshaping the day-to-day realities of clinical care.

“Most responsible AI-powered telemedicine solutions are developed as clinically assistive tools,” said Hannah Gibson, director of UK and global partners at Visiba. “Triage in-person consultations may not always be necessary and if they are, should be more efficient.”

Still, the development of benchmarking tools to evaluate AI systems remains limited. “It takes a significant amount of time and resources for companies to create reliable benchmarking tests for research and development purposes,” said James Tapscott, senior manager of innovation and legal technology at Addleshaw Goddard.

He referenced findings from a report by Addleshaw Goddard, which showed that specific AI-powered retrieval techniques boosted the accuracy of commercial contract reviews from 74 percent to an average of 95 percent. Highlighting broader applications of artificial intelligence, he noted that in certain scenarios, AI models can deliver more concise responses than human counterparts—without compromising on accuracy.

“When it comes to telemedicine, it may be that a more concise, easily understandable answer is preferred … it may be surprising to your readers to see how well these models perform compared to humans,” Tapscott added. Kellie Blyth, partner in commercial at Addleshaw Goddard, said image analysis is one of the most common applications. “The most prevalent use of AI we are seeing in the market is to analyze medical images such as X-rays, MRIs, and CT scans. Many of these solutions can detect anomalies and diseases with an extraordinarily high degree of accuracy, often at earlier stages than previously thought possible.”

Kharbanda said AI could help improve efficiency in outpatient consultations by at least 20 percent, while also easing bottlenecks in emergency and surgical departments.

Investment trends

Saudi Arabia’s digital health sector is experiencing rapid expansion, driven by both public and private investments. A study by BlueWeave Consulting estimated the country’s digital health market size at $3.2 billion in 2024, with projections indicating a compound annual growth rate of 21.3 percent through 2031, reaching $13.3 billion.

Kharbanda said there is a shift in investment focus toward “AI-driven diagnostics, augmented care delivery, and supporting the provider-payer system in understanding health risks and funding structures to optimize health outcomes.”

The most prevalent use of AI we are seeing in the market is to analyze medical images such as X-rays, MRIs, and CT scans. Many of these solutions can detect anomalies and diseases with an extraordinarily high degree of accuracy, often at earlier stages than previously thought possible.

Kellie Blyth, partner in commercial at Addleshaw Goddard, said image analysis is one of the most common applications

Tapscott noted that semi-autonomous AI, also known as agentic AI, could become more common in lower-risk areas such as elder care, offering adaptive solutions that help reduce costs and increase efficiency.

Blyth pointed to the need for regulatory clarity, particularly around ethical use. She said frameworks should address “algorithm vigilance,” which involves regular monitoring to minimize bias and ensure safe use in clinical settings.

Looking ahead

Saudi Arabia’s digital health strategy continues to evolve, with future developments likely to include greater use of wearables, predictive modeling, and AI-assisted diagnostics.

Blyth said a major step forward will be the national biobank overseen by the King Abdullah International Medical Research Center. “The real advances in telemedicine will come at the state level with the establishment of the national biobank,” she said, which will serve as a valuable resource of clinical data from the Saudi population.

This will be further supported by computing infrastructure investments made through the Saudi Company for AI.

Gibson said triage systems powered by AI could soon become a regular feature across healthcare facilities, helping to direct patients to the appropriate level of care from the beginning.

As adoption grows, Saudi Arabia is developing a healthcare model that blends digital access with AI-backed insights, aimed at improving outcomes and supporting a more resilient health system.

Topics: AI technology Saudi Arabia artificial intelligence

MENA startup funding drops 76% in March

Updated 19 April 2025

Nour El-Shaeri

April 19, 2025 22:55

MENA startup funding drops 76% in March

Decline reflects broader economic uncertainty stemming from ongoing US trade tensions

Updated 19 April 2025

Nour El-Shaeri

April 19, 2025 22:55

RIYADH: Startup investment in the Middle East and North Africa region fell sharply in March, with total funding declining 76 percent month on month to $127.5 million across 28 deals, down from $530 million in February.

The decline — observed even after excluding debt financing from both months — reflects broader economic uncertainty stemming from ongoing US trade tensions with global partners.

These geopolitical developments have impacted key regional economies, contributing to a 50 percent year-on-year drop in both the volume and value of investments, according to Wamda’s monthly report.

February’s funding surge was largely driven by major startup events, including Saudi Arabia’s flagship LEAP conference.

UAE tops regional funding

The UAE retained its lead in regional startup funding, securing $104.4 million across 14 transactions. Egypt ranked second with $11.6 million from four deals, followed by Saudi Arabia, which raised $8 million through five startups.

Despite the March slowdown, the first quarter saw robust activity, with MENA startups raising $1.5 billion — marking a 244 percent increase compared to the same period in 2024.

Fintech leads Q1 surge, SaaS absent for 2nd month

Fintech remained the dominant sector, attracting $82.5 million across 10 deals in March alone. The sector accounted for over $1 billion in the first quarter funding across 36 startups, cementing its role as a top investment magnet since 2021.

Healthtech and artificial intelligence followed, raising $16 million and $14 million respectively. In contrast, software-as-a-service, or SaaS, startups failed to secure funding for the second consecutive month.

Early-stage companies captured 70 percent of March funding, amounting to $58 million, while later-stage firms raised $46 million, including three Series B rounds.

Debt financing also declined sharply, comprising just 12.5 percent of total monthly funding. Business-to-business startups continued to attract the bulk of investor attention, raising $97 million, while business-to-consumer ventures brought in $24 million.

Gender funding gap widens; investor caution rises

No female-founded startups received funding in March — a significant setback for gender equity in the region’s entrepreneurial landscape.

Male-founded ventures secured $113 million, with the remainder going to mixed-gender founding teams.

Founded in 2022 by Abdullah Al-Lahuo and Salem Al-Badawi, Sadq offers legally compliant digital solutions for secure document management. (Supplied)

The broader investment slowdown is expected to prompt increased investor caution, with a tilt toward later-stage startups that have demonstrated resilience amid macroeconomic headwinds, Wamda noted.

Sectors tied to global trade — such as logistics, mobility, and e-commerce — may face continued challenges as new alliances and shifting energy dynamics reshape the global economic order. However, adaptable startups could benefit from emerging opportunities, the report added.

Sadq raises $1.5m to expand digital signature platform

Saudi Arabia-based Sadq, a digital signature and document authentication platform, has raised $1.5 million in a pre-Series A round led by X by Unifonic Fund. Other investors, including strategic backer Unifonic, also participated.

Founded in 2022 by Abdullah Al-Lahuo and Salem Al-Badawi, Sadq offers legally compliant digital solutions for secure document management and plans to use the funding to expand its presence across Saudi institutions.

Seesaw, established in 2007, develops AI-powered learning tools and digital curricula. (Supplied)

TruBuild secures $1m to fuel AI-powered contech expansion

Saudi construction tech startup TruBuild has raised $1 million in a seed round led by Wa’ed Ventures and Dar Ventures, with support from Plug & Play Ventures, OQAL, Taz Investment, and several angel investors.

Founded in 2023 by Bisrat Degefa and Sari Sabban, TruBuild uses AI to reduce inefficiencies and improve collaboration in construction projects. The funding will support product development and expansion within and beyond Saudi Arabia.

Seesaw acquires Little Thinking Minds

US-based edtech company Seesaw has acquired Jordan’s Little Thinking Minds for an undisclosed sum.

Founded in 2004 by Lamia Tabbaa and Rama Kayyali, Little Thinking Minds specializes in Arabic literacy tools and is one of the region’s prominent female-founded edtech startups.

Seesaw, established in 2007, develops AI-powered learning tools and digital curricula. The acquisition will integrate Seesaw’s interactive tech with Little Thinking Minds’ Arabic language expertise.

Dubizzle Group acquires Property Monitor

Dubai-based classifieds platform Dubizzle Group has acquired UAE’s Property Monitor, a real estate analytics firm, for an undisclosed amount.

Founded in 2014, Property Monitor provides valuation and market intelligence services for real estate stakeholders. The acquisition supports Dubizzle’s strategy to expand offerings across its platforms Bayut and dubizzle. It follows Dubizzle’s February acquisition of Egypt’s online car marketplace Hatla2ee.

DPI takes over Egypt’s Nclude fintech fund management

UK-based private equity firm Development Partners International has assumed management of Egypt’s fintech fund Nclude, previously overseen by Global Ventures.

Launched in 2022, Nclude closed a $110 million round that September and has invested $28 million across nine startups, including Partment, Khazna, and Paymob.

DPI will advise through a dedicated Egypt-based team. With nearly $850 million invested in Egypt over the past decade, the firm brings significant experience in supporting digital transformation.

AIREV receives strategic backing from Venturewave Capital

UAE-based artificial intelligence firm AIREV has secured investment from Ireland’s Venturewave Capital to accelerate the growth of its AI operating system ‘On-Demand.’

The capital will enable AIREV to expand beyond the UAE and Ireland and explore new markets. The investment reinforces its ambition to scale as a leading AI player in the Gulf.

The investment reinforces AIREV’s position to scale as an AI company in the Gulf region.

viAct raises $7.3m Series A to advance industrial AI

Hong Kong-based AI startup viAct has closed a $7.3 million Series A round led by Venturewave Capital, with participation from Singtel Innov8, Korea Investment Partners, and the PolyU Entrepreneurship Investment Fund.

The firm develops AI models for hazard prediction and workforce safety in high-risk sectors. viAct plans to expand its presence in the Middle East, especially Saudi Arabia, and grow its engineering and sustainability teams globally.

Topics: Start-up of the Week MENA startups

UK-Saudi trade ties deepen as 50 British firms set up regional HQs in Kingdom

Updated 18 April 2025

April 18, 2025 16:44

UK-Saudi trade ties deepen as 50 British firms set up regional HQs in Kingdom

Updated 18 April 2025

April 18, 2025 16:44

RIYADH: The strong investment growth in Saudi Arabia’s economy has led 50 British companies to set up regional headquarters, joining over 1,300 UK firms already operating in the Kingdom, said a senior UK trade official.

The UK is positioning itself as a long-term partner in the Kingdom’s economic transformation, with bilateral trade already surpassing £17 billion ($22.55 billion) and expected to grow further in line with Vision 2030.

“The UK and the Kingdom of Saudi Arabia have enjoyed a warm and deep trading relationship for a long time,” said Peter Ashby, deputy UK trade commissioner for the Middle East, in an interview with Al-Eqtisadiah.

Peter Ashby, deputy trade commissioner for the Middle East and director of trade and investment for Saudi Arabia, based in the British Embassy in Riyadh. Photo/Al-Eqtisadiah

“So, we are starting from strong foundation and a place of friendship and mutual respect,” added Ashby, who is also the director of trade and investment at the British Embassy in Riyadh.

Both governments, he said, “are working extremely hard to strengthen our trading relationships and to create quality jobs in new sectors under Vision 2030 and the UK’s upcoming Industrial Strategy.”

Ashby said the UK-Saudi Strategic Partnership Council — led by Saudi Commerce Mnister Majid bin Abdullah Al-Kassabi and UK Secretary of State for Business and Trade Jonathan Reynolds — has been central to advancing bilateral initiatives across economic and social pillars.

‘Great Futures’ initiative

A flagship effort under that framework is the ‘Great Futures’ campaign, which Ashby described as a “joint initiative to promote trade, tourism, innovation and cultural partnerships.” It has supported deals in priority sectors such as critical minerals and AI-enabled technology.

“The campaign continues, with GREAT FUTURES supporting business engagement in the UK and Saudi Arabia, including bespoke events such as the UK-Saudi Skills Forum at the upcoming HCI (Human Capability Initiative) and EDGEx Education Global Exhibition,” Ashby said.

The campaign’s impact was tangible from the outset. “The event delivered more than 50 agreements across priority sectors and was the catalyst for the partnerships worth over £7.7bn and delivering 4000 jobs in both Kingdoms, announced during the UK Prime Minister’s visit in December last year,” he said.

One of those deals involved hydrogen-focused UK firm HYCAP, which partnered with Saudi companies “to invest over £750 million in hydrogen mobility infrastructure solutions between both our countries, securing over 1000 jobs across Northern Ireland and the rest of the UK.”

Vision 2030 alignment

Ashby pointed out that the UK is “strategically aligning its expertise with Saudi Arabia's Vision 2030 priorities, particularly focusing on supporting the Kingdom's transition into non-oil sectors.”

The UK is concentrating on industries where it already leads globally — “including energy, financial services, clean technology, advanced manufacturing, digital innovation, healthcare, biotech, creative industries, and defence.”

Recent milestones include the announcement of a UK-Saudi Sustainable Infrastructure Assembly, aimed at enhancing collaboration between UK financial and professional services and Vision 2030’s sustainable infrastructure projects.

He also cited the example of UK-based Phytome Life Sciences, which launched “a UK-Saudi innovation-investment bridge with the Research, Development and Innovation Authority (RDIA), to accelerate research, development and investment in medicines, materials and agricultural solutions.”

Academic collaboration is another key focus. “Our UK universities have already been working in this space, with one notable example being the partnership in AI for precision medicines between the University of Oxford and King Abdulaziz University, and we hope to see more partnerships thrive,” he added.

“With more than 1300 UK firms operating in Saudi Arabia and more than 50 UK companies establishing regional headquarters in the Kingdom,” Ashby said, “the export of UK skills and expertise to the country puts the UK in a strong position to support the transformation that is taking place through Vision 2030.”

Supporting giga-projects

UK firms are also playing a growing role in the Kingdom’s giga-projects, including NEOM and the Red Sea Project. “UK firms are making substantial contributions to Saudi Arabia's giga-projects, bringing world-leading expertise in innovation, sustainability, and technical excellence,” he said.

He cited Graphene Innovations, a Manchester-based firm that “recently announced the world’s first commercial production plant for graphene-enriched carbon fibre with NEOM.” The facility is expected to “generate £250 million of investment into a research and innovation hub in Greater Manchester and is expected to create more than 1,000 skilled jobs in the region.”

On the Saudi side, the project is expected to “contribute over 4,500 skilled jobs to Saudi Arabia’s economy by 2030, generating revenues exceeding $1.6 billion.”

Ashby said these partnerships showcase “the UK's strengths in clean technology, advanced materials, and sustainable infrastructure — all critical components of Saudi Arabia's ambitious giga-projects as they move from strategy into delivery phase.”

Clean energy, smart Infrastructure and capital markets

Clean energy partnerships between the UK and Saudi Arabia are valued at £7.7 billion and are “set to create over 4000 UK jobs,” Ashby noted.

Among them is Carbon Clean’s work with Aramco on modular carbon capture, and Next Generation SCM’s deal with City Cement Co. to produce 2.5 million tonnes of sustainable cement and concrete materials annually.

On financial services, Ashby emphasized the UK’s global role: “All Saudi Arabian bond and sukuk issuances have been made through The London Stock Exchange (LSE), with $41.8 billion in capital raised in 2024 alone. This demonstrates the deep trust Saudi institutions place in UK financial markets.”

By leveraging this expertise, UK firms are “supporting the development of more sophisticated capital markets, and facilitating Saudi companies' access to global investment.”

UK-GCC FTA

Looking ahead, Ashby underscored the strategic significance of a UK-Gulf Cooperation Council Free Trade Agreement. “This could grow trade between the UK and the GCC by 16 percent, adding an extra £8.6 billion a year to trade. Of course, this would further help to grow the UK-Saudi trade relationship.”

He acknowledged that one of the main challenges isn’t regulation, but perception. “In fact, many UK companies are surprised by how straightforward it is to do business in Saudi Arabia — so I would say that making sure that business leaders fully understand the market is probably the biggest challenge,” he said.

“Many business leaders talk of understanding the Gulf, but the countries within the region are very different. Saudi Arabia is a unique country, with extraordinary, hard-working, and innovative leaders in business and government.”

His advice to executives: “I would encourage all leaders with a serious interest in partnering in the Kingdom to come and build relationships directly here.”

Future opportunities

Ashby said the UK’s upcoming Industrial Strategy “emphasises the importance of shaping markets to meet rapid global economic changes ensuring that the UK remains at the forefront of innovation and investment opportunities.”

He identified growth sectors aligned with Saudi Arabia’s trajectory: “Advanced manufacturing, especially involving innovative materials like graphene-enriched carbon fibre, offers substantial growth potential. The creative industries, digital technology, healthcare, and biotech sectors also present significant opportunities.”

On tourism and entertainment, he added: “Saudi Arabia's focus on developing tourism and entertainment infrastructure creates openings for UK firms with experience in these sectors.”

“As Saudi Arabia continues its impressive delivery of Vision 2030, I see great potential and opportunities for UK and Saudi businesses to contribute to the growth and prosperity of each other’s economies.”

Topics: UK Saudi trade

Saudi Arabia poised to become Mideast’s Silicon Valley, say experts

Updated 18 April 2025

Nirmal Narayanan

April 18, 2025 10:58

Saudi Arabia poised to become Mideast’s Silicon Valley, say experts

Updated 18 April 2025

Nirmal Narayanan

April 18, 2025 10:58

RIYADH: Saudi Arabia is rapidly transforming into a regional technology hub, drawing comparisons to Silicon Valley, thanks to a wave of strategic investments and high-profile initiatives, experts have told Arab News.

At the heart of this transformation is Project Transcendence, a groundbreaking $100 billion initiative launched in 2024.

Spearheaded by the Kingdom’s Public Investment Fund in partnership with Google, the project aims to build a comprehensive artificial intelligence ecosystem within Saudi Arabia.

The initiative is set to bolster the growth of local tech startups, generate employment opportunities, and foster collaborations with global technology firms — positioning the Kingdom at the forefront of regional innovation.

Complementing these efforts is the annual LEAP technology conference, which continues to gain international attention. The 2025 edition of the event attracted over 170,000 visitors and secured investments exceeding $14.9 billion, underscoring Saudi Arabia’s growing appeal as a technology and innovation destination.

These developments are central to the Kingdom’s broader economic reform strategy under Vision 2030, which aims to diversify the economy and reduce its longstanding reliance on oil revenues.

With strategic initiatives and strong global partnerships, Saudi Arabia is cementing its place as a key player in the global tech landscape.

Noor Al-Nahhas, co-founder and CEO of UAE-based software company nybl. Supplied

Speaking to Arab News, Noor Al-Nahhas, co-founder and CEO of UAE-based software company nybl, said: “Saudi Arabia is rapidly transforming into a global technology hub, driven by Vision 2030’s ambitious agenda. The Kingdom is creating a robust ecosystem for tech startups to thrive while accelerating investments in AI and deep tech — technologies that are critical to furthering the progress of the sector.”

He added: “With the emerging developments we are seeing in the Kingdom, obstacles are few — this is the Silicon Valley of the Middle East and a rising force in the global tech landscape.”

Mamdouh Al-Doubayan, managing director of Globant for the Middle East and North Africa region, also echoed similar views. He said that Saudi Arabia’s investments in the digital infrastructure should be supported with key partnerships to achieve the desired results.

Mamdouh Al-Doubayan, managing director of Globant for the Middle East and North Africa region. Supplied

“The Kingdom is making substantial investments in digital infrastructure while fostering an ecosystem that nurtures innovation and entrepreneurship. Key partnerships are pivotal to driving this vision forward,” said Al-Doubayan.

The crucial SME factor

Vikas Panchal, general manager, Middle East, for Indian multinational technology company Tally Solutions, told Arab News that small and medium enterprises in Saudi Arabia have a huge role to play as the Kingdom continues its technological evolution journey.

“Saudi Arabia is rapidly advancing in its digital transformation journey, with SMEs playing a pivotal role in this evolution. The Kingdom’s Vision 2030 has placed technology and digitalization at the forefront of economic diversification, fostering a pro-business environment where SMEs are seen to continuously succeed in,” said Panchal.

Vikas Panchal, general manager, Middle East, for Indian multinational technology company Tally Solutions. Supplied

He added that government-backed programs like Monsha’at’s SME support initiatives as well as investments in AI, fintech and e-commerce are equipping businesses with scalable digital tools, thus allowing them to compete on a global scale.

“With streamlined business regulations and a growing interest in pursuing tech-driven efficiencies, Saudi Arabia is on track to becoming a global tech hub,” Panchal added.

Homegrown innovation

Amid these advancements, experts also highlighted potential challenges that Saudi Arabia may encounter as it strives to establish itself as a global tech destination.

Al-Doubayan noted that while the Kingdom is making significant progress in digital transformation, addressing certain challenges will be crucial to ensuring sustainable growth.

He pointed out that one of the key obstacles Saudi Arabia may face is building a robust talent pipeline to support the burgeoning tech sector.

“While the Kingdom invests in education and training, attracting and retaining skilled professionals in a competitive global landscape remains critical,” said Al-Doubayan, adding: “Additionally, navigating regulatory frameworks and ensuring a supportive environment for innovation can be complex, especially as the country seeks to balance rapid technological advancement with traditional practices.”

Panchal said that some of the challenges faced by the Kingdom include costs for digital transformation, especially among SMEs in the Kingdom.

“While large corporations are quickly embracing AI and automation, many SMEs still face challenges in transitioning from traditional to digital operations. The lack of expertise in adopting cloud-based financial management, tax automation, and real-time accounting can slow down their competitiveness,” said Panchal.

He added: “For some SMEs, the initial cost of transitioning to fully digital operations can be a challenging feat. By empowering SMEs with affordable, easy-to-use technology solutions, Saudi Arabia can overcome these hurdles and accelerate toward its goal of achieving a truly tech-driven economy.”

Al-Doubayan also expressed similar views and said that some companies are facing the risk of infrastructural limitations, as developing the necessary digital and physical infrastructure to support ambitious projects can be both time-consuming and costly.

Al-Nahhas said that Saudi Arabia should strengthen its AI capabilities to truly achieve its tech ambitions in the future.

“One critical factor to consider is the speed at which the global AI race is evolving. This will be a vital aspect to remain cognizant of as Saudi Arabia pushes forward in pursuit of meeting its Vision 2030 goals,” said the nybl CEO.

He added that Saudi Arabia should try to develop its local ecosystem for technological innovation rather than importing it from other nations.

“A striking example is DeepSeek, which in a short span has developed an AI model capable of rivalling those from Silicon Valley and disrupts the sector in unprecedented ways,” said Al-Nahhas.

DeepSeek, a chatbot developed by China, uses advanced large language models and was first launched on Jan. 10.

Upon its release, it quickly outpaced ChatGPT, becoming the most downloaded freeware app on the iOS App Store in the US.

The impressive performance of DeepSeek, coupled with its relatively low cost, has made waves globally, challenging the dominance of US-based AI models.

Thanks to its Natural Language Processing technologies, DeepSeek is able to understand, interpret, and generate human language more effectively, resulting in a 60 percent reduction in irrelevant search results compared to traditional search engines.

Al-Nahhas added: “This highlights the sheer speed of innovation in the tech sector, but also raises a fundamental question: ‘Why should we import tech when we have the resources and vision to create it in the Kingdom?’ To truly lead, Saudi Arabia must double down on homegrown innovation — over-reliance on external solutions risks dependency and could slow progress.”

During the recent LEAP conference, held in Riyadh from Feb. 9 to Feb. 12, Saudi Minister of Communications and Information Technology Abdullah Al-Swaha also talked about DeepSeek and said that it is beating all AI models.

“We have to celebrate the ChatGPT moment of 2022, but we also have to appreciate the DeepSeek moment. The world does not need polarization in the intelligent age. We need to work collectively to celebrate these advancements, where DeepSeek so far is beating all AI models,” the minister said.

Al-Nahhas added that Saudi Arabia has a massive opportunity to set global benchmarks by developing AI and deep tech in-house, and can ensure that technology is not just made for the Kingdom, but can be exported worldwide, contributing to the growth of the country’s economy.

“Competing on the global stage requires a mindset shift: Saudi Arabia is not just a consumer of technology, we are creators, driving the next wave of innovation from the Kingdom to the world,” said Al-Nahhas.

Dhruv Verma, founder and CEO of Thriwe, a tech-driven benefits as a platform company which expanded its presence to Saudi Arabia in 2023, said that stringent data protection laws may pose hurdles for foreign tech companies, making long-term private sector engagement vital for sustainable growth.

Dhruv Verma, founder and CEO of Thriwe. Supplied

“As digitalization accelerates, the risk of cyber threats and data breaches increases, emphasizing the need for robust cybersecurity measures and cross-border collaborations,” said Verma.

Arun Bruce, CEO of Dubai-based management consultancy firm TransformationX, told Arab News that Saudi Arabia should strengthen its startup ecosystem to ensure that the technology sector will thrive long term.

He also echoed the views of Al-Nahhas that the Kingdom should avoid over-dependence on international technologies, and should develop advanced innovations locally.

Arun Bruce, CEO of Dubai-based management consultancy firm TransformationX. Supplied

“The tech startup scene in KSA is certainly strengthening — with multiple accelerators and government initiatives — but still has some way to go as it competes with global and regional startup hubs,” said Bruce.

He added: “As Saudi Arabia seeks to grow, localizing its tech inputs becomes important. Companies like PIF-backed ALAT are certainly taking the Kingdom in the right direction.”

Topics: technology suadi startups Eye On AI

Population growth, regulatory reforms and tourism reshaping Saudi real estate sector

Population growth, regulatory reforms and tourism reshaping Saudi real estate sector

Giga-projects spark $1.22bn boom in Saudi real estate market

Saudi banks’ real estate loans hit $236bn as Kingdom captures global buyer interest

Saudi finance firms lending surges to $26bn in 2024

Saudi finance firms lending surges to $26bn in 2024

Saudi finance firms report 9% asset growth in H1: SAMA

Saudi finance companies’ credit facilities increase 12% to reach $24bn in Q1

AI-powered telemedicine reshapes Saudi healthcare landscape

AI-powered telemedicine reshapes Saudi healthcare landscape

Cleveland Clinic and G42 to advance healthcare through artificial intelligence

How Saudi Arabia is leveraging artificial intelligence to tackle land degradation

MENA startup funding drops 76% in March

MENA startup funding drops 76% in March

SMEs in MENA, South Asia raise capital, expand

How early-stage startups build for public markets

UK-Saudi trade ties deepen as 50 British firms set up regional HQs in Kingdom

UK-Saudi trade ties deepen as 50 British firms set up regional HQs in Kingdom

Saudi Arabia, UK sign pact on marine biodiversity protection

Saudi Arabia, UK set up sustainable infrastructure assembly to bolster trade

Saudi Arabia poised to become Mideast’s Silicon Valley, say experts

Saudi Arabia poised to become Mideast’s Silicon Valley, say experts

Saudi AI researcher designs system to help people understand sign language

Saudi tech authority helps drive national digital transformation with e-gates at Kingdom’s airports

Latest updates

Basketball legends hail impact of Jr NBA Abu Dhabi League after conclusion of fourth edition

Jennifer Lopez turns heads at F1 Saudi Arabian Grand Prix

German police launch manhunt after 2 people shot dead

Japan’s Koji Yamamura brings expertise to Saudi Film Festival masterclass

South Korea, US, to hold trade talks this week, Seoul says

Recommended

How experts in Saudi Arabia are harnessing the power of microbes to treat wastewater

How AI is decoding multi-omics data to boost health and longevity in Saudi Arabia

How falling cases of tuberculosis in Iraq reflect a wider health system recovery

Search form

Print Edition

Search form

Search form

You are here

Population growth, regulatory reforms and tourism reshaping Saudi real estate sector

Population growth, regulatory reforms and tourism reshaping Saudi real estate sector

Related

Saudi finance firms lending surges to $26bn in 2024

Related

AI-powered telemedicine reshapes Saudi healthcare landscape

Related

MENA startup funding drops 76% in March

Related

UK-Saudi trade ties deepen as 50 British firms set up regional HQs in Kingdom

Related

Saudi Arabia poised to become Mideast’s Silicon Valley, say experts

Related

Latest updates

Recommended

Search form

Print Edition