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

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
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Updated 16 March 2025
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Population growth, regulatory reforms and tourism reshaping Saudi real estate sector

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

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.


FIFA World Cup 2034 a ‘game changer’ for Saudi tourism, experts say

FIFA World Cup 2034 a ‘game changer’ for Saudi tourism, experts say
Updated 22 sec ago
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FIFA World Cup 2034 a ‘game changer’ for Saudi tourism, experts say

FIFA World Cup 2034 a ‘game changer’ for Saudi tourism, experts say

RIYADH: Hosting the FIFA World Cup in 2034 is expected to transform Saudi Arabia's tourism sector and accelerate the nation’s economic diversification, experts said. 

The Kingdom was awarded the competition by the sport’s international governing body in December, and is set to hold the event in 15 stadiums across five cities. 

Saudi Arabia’s sports tourism sector has been witnessing rapid growth since the launch of Vision 2030 nine years ago, with the Kingdom drawing 2.5 million visitors through 80 international events in the last four years, Tourism Minister Ahmed Al-Khateeb said in February. 

Bolstering the tourism sector is one of the crucial goals outlined in Saudi Arabia’s Vision 2030 initiative, as the Kingdom is steadily diversifying its economy by reducing its decade-long reliance on oil revenues. 

Saudi Arabia’s ambitious National Tourism Strategy aims to attract 150 million visitors by the end of this decade. 

Cristiano Ronaldo is one of a host of footballing superstars who now play in the Saudi league. Getty

Speaking to Arab News, Federico Pienovi, chief business officer and CEO of New Markets at Globant, said that the mega football event presents immense opportunities for the Kingdom to develop multiple sectors.

“Hosting the FIFA World Cup is a game-changer for Saudi Arabia’s tourism sector. For Saudi Arabia, FIFA World Cup 2034 represents a key milestone in its Vision 2030 strategy, accelerating economic diversification beyond oil by boosting tourism, hospitality, infrastructure, and smart city development,” said Pienovi. 

He added that the tournament accelerates the Kingdom’s tourist number ambitions by putting Saudi Arabia on the map for future leisure and business tourism.

Guillaume Thibault, partner and head of sports and entertainment at Oliver Wyman for India, the Middle East and Africa, echoed similar views and said the football gala will be a major catalyst for Saudi Arabia’s economic diversification, attracting over 10 million international visitors.

Thibault added that the event is also expected to accelerate Saudi Arabia’s national strategies in tourism, transport, and quality of life, creating opportunities in construction, hospitality, fan engagement, and talent development — all while mobilizing private sector investment. 

Argentina won the World Cup the only other time the competition was held in the region — Qatar in 2022. Getty

The Oliver Wyman official further said that hosting events such as the FIFA World Cup could boost the gross domestic product of Saudi Arabia, as well as creating immense job opportunities. 

“On a macroeconomic level, past World Cups have contributed up to 10 percent GDP growth, as seen in South Africa 2010, while creating tens of thousands of jobs. Saudi Arabia can maximize its investment impact by aligning with local businesses and PIF-backed companies, ensuring long-term economic gains and positioning itself as a global sports and business hub,” said Thibault. 

Max Klante, managing director and partner of Boston Consulting Group, said that major sporting events such as the 2034 World Cup, Formula 1, and the upcoming Asian games, will serve as an entry point for global audiences, showcasing Saudi Arabia as a travel destination.

“They provide a platform to highlight the Kingdom’s culture, heritage, and landscapes to the world while showcasing new and exciting entertainment and cultural experiences such as eSports and adventure extreme sports. The integration of sports, media, entertainment, and culture boosts international visibility and fosters long-term tourism growth,” said Klante. 

Saudi Arabia has already hosted several major sporting events, including the WWE Super Showdown, the Saudi Pro-Golf Championship, Battle of the Champions, and Formula E. 

The Kingdom has also witnessed E-Prix, the International Handball Federation Super Globe and the Saudi International Meeting for Disabilities Sport, as well as organizing the auction of players for the 2025 Indian Premier League, a major cricketing event which features 10 professional clubs. 

Long-term impacts

According to Pienovi, hosting major sporting events will not only boost tourism in the Kingdom but will also support the country’s infrastructure growth for the long term. 

“Beyond the tournament, the country will benefit from long-term infrastructure improvements, smart venue advancements, and the rise of new entertainment hubs that will attract visitors for years to come,” said Pienovi. 

Thibault said that hosting such events will help Saudi Arabia establish itself as a premier sports destination globally, strengthen global ties, attract international business, and enhance the Kingdom’s geopolitical influence. 

 “When executed strategically, major sporting events leave a lasting impact beyond the tournament itself. Mega-events drive billions in tourism, investment, and job creation. The 2012 London Olympics, for example, contributed $17 billion to the UK economy, proving their long-term financial impact,” said Thibault. 

He added: “In terms of urban transformation, such events accelerate infrastructure development and reshape cities. The Sochi 2014 Winter Olympics revitalized an entire region, turning legacy resorts into prime real estate. Saudi Arabia’s smart city and transport investments will ensure similar long-term benefits.” 

Elevating diplomatic and bilateral relationship

The Oliver Wyman official further said that hosting such global events could help Saudi Arabia strengthen its bilateral relationship with several countries. 

Saudi Arabia is already a diplomatic leader, ranking 18th in the Global Soft Power Index 2024 and has already hosted key forums including the G20 Summit and the World Economic Forum. 

“Mega-events further enhance global ties by bringing nations together through sport, fostering cultural exchange, trade, and investment partnerships. By attracting global leaders, Saudi Arabia can deepen international collaborations, expand economic alliances, and position itself as a key player in global sports diplomacy,” said Thibault. 

Klante also expressed identical views and said that successfully hosting global tournaments will enhance Saudi Arabia’s standing as a reliable and capable partner on the world stage.

“The ability to deliver top-tier sporting events creates unique opportunities for diplomatic engagement and strengthens economic and cultural ties with other nations. Stronger ties promote global understanding, security and prosperity,” added the BCG official. 

Klante added that hosting major international events will establish Saudi Arabia’s credibility in sports management and global event organization, while also opening opportunities for developing long-term partnerships with international teams, leagues, and sports federations.

He further said that such events in Saudi Arabia could also boost the morale in the Kingdom, and the country will see more sporting heroes in the coming years. 

“The ability to host major events inspires our youth to follow in the footsteps of their sports heroes. This strengthens engagement in sports, be this football, eSports, athletics or formula car racing. By inspiring the youth of today we lay the foundation for the top athletes of tomorrow,” said Klante. 

A drone show in Riyadh after Saudi Arabia was announced as the host nation for the FIFA World Cup 2034 on December 11. Getty

Potential challenges

Experts who talked with Arab News also talked about the potential challenges Saudi Arabia could face as the Kingdom gears up to face global sporting events. 

According to Pienovi, the challenge for the Kingdom lies in integrating cutting-edge technology for seamless fan interactions — whether it’s AI-driven crowd management, frictionless ticketing, or hyper-personalized digital experiences. 

“Fans now expect an immersive, waitless, and contactless experience, powered by AI, AR/VR, and digital personalization. Implementing biometric entry, tech-driven loyalty programs and real-time engagement solutions will be key to delivering a next-level experience,” said Pienovi. 

He added: “The challenge is not just in adopting these technologies but in making them intuitive, frictionless, and scalable across multiple venues.”

The Globant official believes that ensuring seamless connectivity across all platforms — from real-time streaming to AR-powered second-screen experiences — will be crucial for reaching international audiences and keeping fans engaged beyond the stadium. 

Klante underscored the vitality of strengthening the transport systems in the Kingdom, as well as, bolstering the logistical prowess, and said that “world-class events require complex logistical planning, complex integration and seamless execution.”

He added: “Ensuring global accessibility, efficient transport, and a smooth visitor experience will be critical to success. A focus must always be placed on how the visitor journey interacts with the various city and intercity transport solutions — creating a unified experience like no other.” 

Thibault also expressed similar views and said that logistics, crowd management and infrastructure development are crucial for Saudi Arabia to seamlessly host mega events like FIFA World Cup. 

The Oliver Wyman official added that managing transport, security, and emergency response requires advanced planning, with mega-projects including NEOM and Qiddiya integrating AI-driven security and real-time crowd monitoring. 

“The challenge lies in balancing speed with sustainability. Legacy planning is key to avoiding underutilized venues, ensuring stadiums transition into training hubs, community centers, or professional league facilities,” added Thibault.


Oil Updates — crude up but heads for weekly drop under supply pressure

Oil Updates — crude up but heads for weekly drop under supply pressure
Updated 25 April 2025
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Oil Updates — crude up but heads for weekly drop under supply pressure

Oil Updates — crude up but heads for weekly drop under supply pressure

SINGAPORE/NEW YORK: Oil prices rose for a second session on Friday buoyed by potential de-escalation of the US-China trade war, but the market was headed for a weekly decline amid concerns about oversupply.

Brent crude futures gained 43 cents to $66.98 a barrel by 7:33 a.m. Saudi time, on track to fall 1.4 percent for the week.

US West Texas Intermediate crude rose 42 cents to $63.21 a barrel but was set to decline 2.3 percent for the week.

“For today, oil prices are slightly up as the market responds to signs of easing tensions around Trump’s tariffs and a potential shift in the Fed’s policy stance, contributing to a broader market recovery,” said LSEG senior analyst Anh Pham.

“On a weekly basis, however, prices are down as concerns over oversupply from OPEC+ persist, while the demand outlook remains uncertain amid ongoing trade tensions. A stronger US dollar has also added pressure to crude prices,” he added.

US President Donald Trump said on Thursday that trade talks between the US and China were underway, pushing back against Chinese claims that no discussions had taken place.

China is considering exempting some US imports from its 125 percent tariffs and is asking businesses to provide lists of goods that could be eligible in the biggest sign yet of Beijing’s concerns about the economic fallout from the trade war.

China hiked its tariffs after Trump announced higher levies on Chinese goods.

Oil prices tumbled earlier this month after the tariffs sparked concern about global demand and a sell-off in financial markets.

Worries are growing about excess supply. Several OPEC+ members had suggested the group accelerate oil output increases for a second month in June, Reuters reported earlier this week.

The US and Russia are moving in the right direction to end the war in Ukraine, but some specific elements of a deal remain to be agreed, Russian Foreign Minister Sergey Lavrov said in an interview with CBS News.

A halt to Russia’s war in Ukraine and the easing of sanctions could allow more Russian oil to flow to global markets. Russia, a member of the OPEC+ group that includes the Organization of the Petroleum Exporting Countries, is one of the world’s biggest oil producers along with the US and Saudi Arabia.

And Iranian Foreign Minister Abbas Araqchi said on Thursday he was ready to travel to Europe for talks on Tehran’s nuclear program.

Successful talks with Europe and the US would probably result in the lifting of sanctions on Iranian oil exports. Iran is the third-biggest oil producer in OPEC behind Saudi Arabia and Iraq.


Lebanon amends banking secrecy law in key reform

Lebanon amends banking secrecy law in key reform
Updated 24 April 2025
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Lebanon amends banking secrecy law in key reform

Lebanon amends banking secrecy law in key reform

BEIRUT: Lebanon’s parliament on Thursday granted regulatory bodies greater access to bank account information, a key reform demanded by international creditors before the crisis-hit country can unlock bail-out funds.

Prime Minister Nawaf Salam called parliament’s approval of changes to banking secrecy laws “a necessary step toward the desired financial reform that our government promised to achieve, and a fundamental pillar to any recovery plan.”

Adding that the decades-old culture of financial opacity was no longer the boon to investment it once was, Salam said the reform was fundamental to “restoring the rights of depositors and the confidence of citizens and the international community.”

Lebanon was once a booming regional financial hub dubbed the “Switzerland of the Middle East,” with strict banking secrecy laws a key attraction, but the economic crisis that began in 2019 shredded its fiscal reputation.

Since then, authorities have come under local and international pressure to amend the laws amid accusations that influential figures spirited large sums abroad while regular depositors were locked out of their life savings and the local currency’s value plummeted.

Lebanese rights group Legal Agenda said the amendments allow “banking supervisory and regulatory bodies” including the central bank “to request access to all banking information without linking the request to a specific objective.”

These bodies will now be able to audit customer accounts by name, access deposit details and look into possible suspicious activity, the group said.

The changes are among several major reforms Lebanon needs to make to unlock billions of dollars in aid to restart the economy after the collapse, which was widely blamed on mismanagement and corruption.

Finance Minister Yassine Jaber told local broadcaster LBC that the amendments “opened greater space” for Lebanon’s central bank to access accounts.

But “we should not think that with this law, anyone can enter a bank and demand account details” for whoever they like, added Jaber, who is in Washington with other senior officials for meetings with the IMF and the World Bank.

Alain Aoun, a member of parliament’s finance committee, said the move followed 2022 banking secrecy amendments that the IMF had viewed as “insufficient.”

Now, regulatory bodies will be able to request “the information they want” on bank accounts, he said.

The cabinet, which approved the amendment earlier this month, said it would apply retroactively for 10 years from the date of request, meaning it would cover the start of the economic crisis.


IMF to help Syria reintegrate into global economy, says Georgieva

IMF to help Syria reintegrate into global economy, says Georgieva
Updated 24 April 2025
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IMF to help Syria reintegrate into global economy, says Georgieva

IMF to help Syria reintegrate into global economy, says Georgieva

WASHINGTON: The International Monetary Fund plans to work with Syria to help it reintegrate into the global economy, IMF chief Kristalina Georgieva said on Thursday, citing a meeting on the war-scarred nation held this week.

Georgieva told reporters that Syria’s central bank governor and finance minister attended the Spring Meetings of the IMF and World Bank this week for the first time in over 20 years.

“Our intention is to, first and foremost, help them rebuild institutions so they can plug themselves in the world economy,” she said.

Officials from the IMF and World Bank met with Syrian officials and other finance ministers and key stakeholders to discuss the country’s reconstruction on the sidelines of the meetings in Washington.

The high-level Syrian government delegation’s Washington trip marked the first US visit by Syria’s new authorities since former President Bashar Al-Assad was toppled in December.

Much of Syria’s infrastructure has been left in ruins by nearly 14 years of war sparked by the government authorities’ deadly crackdown on protests against Al-Assad.

The government that took over after Al-Assad was ousted has sought to rebuild Syria’s ties in the region and further afield and to win support for reconstruction efforts.

But tough US sanctions imposed during Al-Assad’s rule remain in place.

In January, the US issued a six-month exemption for some sanctions to encourage humanitarian aid, but this has had limited effect.

Reuters reported in February that efforts to bring in foreign financing to pay public sector salaries had been hampered by uncertainty over whether this could breach US sanctions.


Closing Bell: TASI closes in green at 11,764  

Closing Bell: TASI closes in green at 11,764  
Updated 24 April 2025
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Closing Bell: TASI closes in green at 11,764  

Closing Bell: TASI closes in green at 11,764  

RIYADH: Saudi Arabia’s Tadawul All Share Index concluded Thursday’s trading session at 11,764.39 points, marking an increase of 83.28 points or 0.71 percent. 

The total trading turnover of the benchmark index was SR6.95 billion ($1.85 billion), as 173 stocks advanced, while 67 retreated.  

The MSCI Tadawul Index also surged by 11.97 points, or 0.80 percent, to close at 1,500.71.  

The Kingdom’s parallel market, Nomu also increased, gaining 135.49 points, or 0.48 percent, to close at 28,598.60 points. This comes as 37 of the listed stocks advanced while as many as 42 retreated. 

The main index’s top performer, Saudi Paper Manufacturing Co., recorded a 9.97 percent increase in its share price, closing at SR69.50. 

Other notable gainers included Derayah Financial Co., which rose 8.22 percent to SR30.95, while Al-Baha Investment and Development Co. saw its share price climb 6.34 percent to SR3.52. 

Saudi Arabian Mining Co. also recorded a positive trajectory, with its share price rising 5.74 percent to SR47.00. Saudi Reinsurance Co. posted similar gains, increasing 5.29 percent to close at SR43.75. 

Mulkia Gulf Real Estate REIT recorded the steepest decline on TASI, with its share price slipping 4.71 percent to close at SR5.26.  

Musharaka REIT Fund followed with a 3.51 percent drop to SR4.67. Saudi Cable Co. also saw a notable decline of 3.20 percent to settle at SR139.    

On the parallel market, Hedab Alkhaleej Trading Co. was the top gainer, with its share price surging by 9.25 percent to SR44.90. 

Other top gainers on Nomu included Al Mohafaza Co. for Education, which surged 7.79 percent, or SR1.80, to close at SR24.90, and Shalfa Facilities Management Co., which rose 7.43 percent, or SR5.50, to reach SR79.50.  

Aqaseem Factory for Chemicals and Plastics Co. and Jana Medical Co. were the other top gainers on the parallel market. 

Osool and Bakheet Investment Co. posted the largest decline on Nomu, with its share price falling 8.11 percent to SR34. 

Altharwah Albashariyyah Co. fell 7.86 percent, or SR3.85, to close at SR45.15, while Meyar Co. declined 7.32 percent, or SR4.80, to settle at SR60.80 — making them among the top decliners on the parallel market.