Saudi Arabia is shifting gears and racing into the EV future

Saudi Arabia is shifting gears and racing into the EV future
Saudi Arabia is focused on creating a comprehensive EV ecosystem, and the government is aiming for 30 percent of vehicles in Riyadh to be electrified by 2030. (AFP)
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Updated 16 March 2025
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Saudi Arabia is shifting gears and racing into the EV future

Saudi Arabia is shifting gears and racing into the EV future
  • Kingdom is making a strategic play to lead the global automotive revolution under its ambitious Vision 2030

RIYADH: Long known for its oil industry, Saudi Arabia is now racing toward an electrified future, not just for sustainability reasons, but also to get ahead in this trillion-dollar market.

With billions of dollars being poured into infrastructure, cutting-edge technology and supply chain localization, the Kingdom is making a strategic play to lead the global automotive revolution under its ambitious Vision 2030 road map.

Saudi Arabia is focused on creating a comprehensive EV ecosystem, and the government is aiming for 30 percent of vehicles in Riyadh to be electrified by 2030.

This strategy has seen the Kingdom invest in US-based EV manufacturer Lucid through its Public Investment Fund, as well as creating its homegrown electric vehicle brand, Ceer — set to launch its first models in 2026.

Big bets and bold moves: Saudi Arabia’s investment in EVs

Saudi Arabia’s commitment to economic diversification is evident in its substantial investments in EV production and battery supply chains.

Heiko Seitz, PwC Global and Middle East eMobility leader, told Arab News that the Kingdom is prioritizing the development of a self-sufficient automotive supply chain as a key strategy to solidify its position in the global EV industry.

He added: “Through significant investments, such as $3.4 billion in Lucid Motors to produce 155,000 EVs annually and a $5.6 billion agreement with Human Horizons, the Kingdom is attracting global automakers and building a competitive manufacturing base.”

Seitz highlighted the $9 billion allocated to EV-related materials, including $900 million from EV Metals and $126 million from Ivanhoe Electric, as evidence that the Kingdom is leveraging its $2.5 trillion in untapped mineral reserves to ensure it has access to the critical resources needed for production.

Mazin Jameel, managing director of marketing operations at Abdul Latif Jameel Motors, told Arab News that Saudi Arabia is taking a comprehensive approach to boosting EV adoption by developing a widespread charging network through public and private partnerships with leading technology providers.

“These investments in charging infrastructure are complemented by large-scale renewable energy projects, including solar and wind farms, which will provide clean energy for EV charging,” said Jameel.

He added: “Additionally, the government is introducing regulatory frameworks, financial incentives and policy support to accelerate EV adoption among consumers. These steps reflect Saudi Arabia’s comprehensive approach to fostering a sustainable and future-ready transportation ecosystem.”

The Kingdom is already working on integrating artificial intelligence and automation into the automotive sector, ensuring a more efficient production process.

As part of these efforts, Saudi Arabia is fostering partnerships with global tech firms to enhance the digital infrastructure required for smart mobility solutions.

The integration of AI-driven analytics in EV production will help in optimizing supply chain management and improving vehicle efficiency, positioning Saudi Arabia at the forefront of next-generation mobility innovation.

EVs, fast chargers and a high-tech future

Saudi Arabia is not solely relying on the government to propel the EV industry forward. It is keen to work with the private sector to ensure the sector has solid foundations to blossom.

Ahmad Al-Tawbah, CEO of Motory, told Arab News that private sector expertise in technology and operations is being complemented by public investment in infrastructure, policies and incentives. 

Through significant investments, the Kingdom is attracting global automakers and building a competitive manufacturing base.

Heiko Seitz, PwC Global and Middle East eMobility leader

“In Saudi Arabia, initiatives like the establishment of advanced manufacturing zones, such as NEOM and KAEC, showcase how PPPs can create a thriving ecosystem for automotive assembly, EV production and battery manufacturing,” he said.

Al-Tawbah added that PPPs are crucial in reshaping the supply chain ecosystem.

“They encourage local suppliers to integrate into the global automotive value chain, fostering the growth of local industries, such as component manufacturing and logistics,” he added.

By focusing on localized production, these partnerships help decrease reliance on imports while strengthening Saudi Arabia’s role in regional supply chains. This approach not only satisfies domestic demand, but also enhances the Kingdom’s position as a key export hub for the Middle East and beyond.

Powering jobs and turbocharging the economy

Saudi Arabia’s booming EV sector is not just about seeing cars on the road; it also has the potential to deliver tens of thousands of jobs in engineering, manufacturing, logistics and software development — directly supporting Vision 2030’s objective of increasing employment.

Abdul Latif Jameel Motors’ Jameel said: “Additionally, the automotive ecosystem will provide opportunities for local entrepreneurs and small businesses to participate in the supply chain at all levels of manufacturing, distribution and related logistics, contributing to economic growth and innovation within the sector.”

Ceer Motors, the first Saudi automotive brand, is projected to create 30,000 jobs by 2034, contributing about $8 billion to gross domestic product.

“The Kingdom is investing heavily in workforce upskilling, with over 600,000 Saudis set to benefit from education and training programs,” Seitz said.

Additionally, Saudi Arabia is collaborating with leading universities and research institutions to develop specialized programs in EV technology, battery science and smart mobility solutions.

These initiatives are designed to equip the local workforce with the expertise needed to drive innovation in the automotive sector and position Saudi talent at the heart of future developments.

Luring big players and powering up local brands

As part of its focus on the industry, Saudi Arabia is rolling out the red carpet for global automakers while giving homegrown brands a serious boost.

With enticing financial perks and smart policies, the Kingdom is making it hard for car giants to say no. “Programs like the $2.6 billion Standard Incentives Program provide funding of up to 35 percent of project investments — capped at SR50 million ($13.33 million) per project. Additionally, Lucid Motors received $3.4 billion in financing over 15 years to establish a plant targeting 155,000 EVs annually,” Seitz said. 

These steps reflect Saudi Arabia’s comprehensive approach to fostering a sustainable and future-ready transportation ecosystem.

Mazin Jameel, managing director of marketing operations at Abdul Latif Jameel Motors

He added: “The PIF has also invested $1 billion in Lucid and is backing Ceer Motors. These financial incentives, coupled with regulatory frameworks such as industrial licensing and quality standards certification, create a supportive ecosystem for both international and local manufacturers.”

The Kingdom’s automotive strategy extends beyond production to include research and development in next-generation mobility solutions.

“We’ve teamed up with KAUST and Toyota to push hydrogen fuel research forward, launching Saudi Arabia’s first hydrogen-powered taxi pilot with the Toyota Mirai — big steps toward a cleaner, high-tech transport future,” Jameel said.

Competing on the global stage and challenges

Saudi Arabia is not just joining the global electric vehicle race; it is aiming for pole position. With massive investments, a prime geographic location and a strategy that blends innovation with economic muscle, the Kingdom is shifting gears fast.

“Coupled with the Kingdom’s geographic advantage as a gateway to Asia, Europe and Africa, these efforts are positioning Saudi Arabia as a key export hub for the automotive sector,” Seitz said.

Scaling up Saudi Arabia’s automotive sector also has its own hurdles, but the Kingdom has a game plan.

“To address the lack of a local supply chain, incentives are attracting global suppliers and fostering component manufacturing. Workforce development is a priority, with programs like NAVA training over 600,000 citizens in advanced automotive technologies,” said Seitz.

Another crucial piece of the puzzle, infrastructure expansion, is being “rapidly developed,” Seitz said, highlighting plans to install 5,000 EV fast chargers by 2030 through the Electric Vehicle Infrastructure Co. — a joint-venture company between the PIF and Saudi Electricity Co.

Regulatory frameworks are also being aligned with international standards, while purchase incentives and awareness campaigns are encouraging more drivers to go electric.

Seitz said that investment in Lucid alongside partnerships with global players like Foxconn and Hyundai show that Saudi Arabia is overcoming challenges to solidify its position as a “global automotive powerhouse under Vision 2030.”


Closing Bell: Saudi main index rebounds to close at 11,586

Closing Bell: Saudi main index rebounds to close at 11,586
Updated 7 sec ago
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Closing Bell: Saudi main index rebounds to close at 11,586

Closing Bell: Saudi main index rebounds to close at 11,586

RIYADH: Saudi Arabia’s Tadawul All Share Index rebounded on Tuesday, as it gained 37.74 points or 0.33 percent to close at 11,586.40. 

The total trading turnover of the main index was SR5.41 billion ($1.44 billion), with 101 stocks advancing and 136 declining. 

The Kingdom’s parallel market, Nomu, edged down by 1.24 percent to close at 28,281.76. 

The MSCI Tadawul Index gained 8.09 points to 1,474.60. 

The best-performing stock on the benchmark index was Saudi Fisheries Co. The firm’s share price increased by 10 percent to SR112.20. 

The share price of AlJazira REIT also rose by 9.91 percent to SR15.52. 

Alistithmar AREIC Diversified REIT Fund also saw its stock price increase by 9.90 percent to SR8.77. 

Conversely, the share price of Jahez International Co. for Information System Technology declined by 3.33 percent to SR27.55. 

On the announcements front, Aldrees Petroleum and Transport Services Co. revealed that its net profit for the first quarter of this year reached SR100.1 million, representing a rise of 29.32 percent compared to the same period in 2024. 

Compared to the fourth quarter of 2024, Aldrees’ net profit increased by 6.94 percent. 

In a press statement, Aldrees attributed the rise in profit to higher sales from the company’s petrol and transport division. 

The share price of Aldrees edged up by 1.81 percent to SR135. 

In a Tadawul statement, the Saudi National Bank said that its net profit for the first three months of this year witnessed a year-on-year rise of 19.48 percent to reach SR6.02 billion. 

The financial institution said that the rise in profit was driven by a 7.56 percent rise in operating revenue during the first quarter compared to the same period of the previous year. 

The stock price of SNB increased by 3.98 percent to SR35.25.


ACWA Power secures $119m loan facility from Alinma Bank for new headquarters

ACWA Power secures $119m loan facility from Alinma Bank for new headquarters
Updated 16 min 38 sec ago
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ACWA Power secures $119m loan facility from Alinma Bank for new headquarters

ACWA Power secures $119m loan facility from Alinma Bank for new headquarters

RIYADH: Saudi utility giant ACWA Power has secured an SR750 million ($119 million) Shariah-compliant term loan facility from Alinma Bank to fund its new headquarters in Riyadh.

The seven-year agreement reflects the bank’s confidence in the world’s largest private water desalination company, recognizing its strong financial position and strategic role in supporting the Kingdom’s Vision 2030 and energy transition goals, according to a statement.

This also aligns with the Ministry of Environment, Water, and Agriculture’s goal to meet 90 percent of Saudi Arabia’s water needs through desalination and the remaining 10 percent from ground and surface water by 2030.

In the statement, Abdulhameed Al-Muhaidib, chief financial officer of ACWA Power, said: “This financing from ALINMA Bank highlights our strong financial position and the confidence the market has in our vision.”

He added: “Our new headquarters will be more than just a building; it will be a symbol of our commitment to innovation, sustainability, and the Kingdom’s ambitious goals for a cleaner, more prosperous future.”

Chief Corporate Banking Officer of Alinma Bank Jameel Al-Hamdan said his firm was proud to announce its role as the sole financier of the new office.

Al-Hamdan added: “This landmark project aligns with both organizations’ commitment to driving sustainability and innovation in the corporate sector and with the Kingdom’s net-zero strategy.” 

The statement added that ACWA Power’s new headquarters in Riyadh reflects its role as a national leader in the energy transition, offering a cutting-edge space designed to centralize operations and foster teamwork and innovation.

It is also set to offer an eco-conscious workspace that supports employees in fulfilling their roles while fostering sustainability.

ACWA Power reported a net profit of SR1.75 billion in 2024, representing an annual increase of 5.74 percent, according to a Tadawul statement released in February.

This growth in profit was driven by increased revenue from operations and maintenance, as well as higher earnings from electricity sales. 

The company revealed the rise was attributed to a higher share in net results of equity-accounted investees, gains from capital recycling, and increased net finance income.

The firm’s overall revenue for 2024 was SR6.29 billion, marking a 3.32 percent increase compared to the previous year, according to the statement at the time.

During the same month, ACWA Power signed two agreements with Aramco to accelerate the deployment of renewable energy projects and evaluate the performance of vanadium flow batteries in the Kingdom’s climate.


Saudi crude output hits 8.95m bpd: JODI data 

Saudi crude output hits 8.95m bpd: JODI data 
Updated 48 min 8 sec ago
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Saudi crude output hits 8.95m bpd: JODI data 

Saudi crude output hits 8.95m bpd: JODI data 

RIYADH: Saudi Arabia’s crude oil production rose to 8.95 million barrels per day in February, marking a 0.34 percent monthly increase, according to the latest release from the Joint Organizations Data Initiative. 

Crude exports also climbed during the same period, rising 7.81 percent to reach 6.55 million bpd, the report showed.  

Refinery crude exports rose by 5.39 percent month on month in February to 1.41 million bpd, reflecting a 1.29 percent increase compared to the same period last year. The uptick was driven primarily by diesel shipments, which jumped 24.4 percent from the previous month to 668,000 bpd. 

Key refined products included diesel, motor gasoline, aviation gasoline, and fuel oil. Diesel accounted for the largest share of refined product exports at 47 percent, followed by motor and aviation gasoline at 18 percent, and fuel oil at 14 percent. 

Total refinery output reached 2.62 million bpd in February, a 6.6 percent monthly increase, with diesel comprising 40 percent of refined products, motor and aviation gasoline 24 percent, and fuel oil 14 percent. 

Domestic demand for refined petroleum products fell by 69,000 bpd in February compared to the previous month, reaching 1.71 million bpd. On an annual basis, demand dropped by 22.09 percent, equivalent to a decline of 485,000 bpd.  

On April 3, eight OPEC+ countries — including Saudi Arabia, Russia, Iraq, the UAE, Kuwait, Kazakhstan, Algeria, and Oman — reaffirmed their commitment to supporting oil market stability amid a positive demand outlook. 

In a virtual meeting, the group agreed to implement a production increase of 411,000 bpd in May 2025, representing a front-loaded adjustment equivalent to three months of scheduled increments. The move marks the beginning of a phased and flexible reversal of the 2.2 million bpd in voluntary cuts introduced in 2023, in line with the decision reaffirmed in March. 

OPEC+ emphasized that the pace of future increases may be paused or reversed depending on market conditions, with monthly meetings scheduled to assess conformity and decide on subsequent production levels. According to the latest schedule, Saudi Arabia’s required production for May is set at 9.2 million bpd. 

Direct crude usage 

Saudi Arabia’s direct crude oil burn rose to 283,000 bpd in February, reflecting a 2.9 percent increase from January, but showing a 21 percent decline compared to the same month last year. 

The reduction in direct crude oil use for power generation is influenced by multiple strategic and economic factors. 

According to the US Energy Information Administration’s 2024 report, 62 percent of Saudi Arabia’s electricity was generated from natural gas in 2023, up from previous years — a shift that has significantly reduced the country’s reliance on crude oil for power generation. The expansion of gas-fired capacity has played a central role in this transition. 

The International Energy Agency’s 2024 Oil Market Report also highlighted that Saudi Arabia is actively expanding its electricity generation capacity through both natural gas and renewable energy sources, in alignment with Vision 2030. 

Supporting this trend, the Saudi Power Procurement Co. awarded bids in 2023 for four gas-fired power plants, each with a capacity of 1.8 gigawatts, and began accepting bids for four additional projects in early 2024. As of mid-2024, the Kingdom has more than 21 GW of planned renewable energy projects, the majority of which are focused on solar power. 


Saudi Arabia tops emerging markets’ venture capital funding, overtakes Singapore 

Saudi Arabia tops emerging markets’ venture capital funding, overtakes Singapore 
Updated 22 April 2025
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Saudi Arabia tops emerging markets’ venture capital funding, overtakes Singapore 

Saudi Arabia tops emerging markets’ venture capital funding, overtakes Singapore 

RIYADH: Saudi Arabia has overtaken Singapore as the premier destination for venture capital funds across emerging markets after it secured $391 million in the first quarter of 2025.

The 53 percent year-on-year rise helped propel the Kingdom to becoming the highest-performing country across the Middle East, Africa, Pakistan, Turkiye, and Southeast Asia in terms of total funding during the three-month period, as revealed in the latest analysis by venture data platform MAGNiTT. 

While the standout $160 million series E round by fintech unicorn Tabby contributed significantly to the overall figure, the broader investment ecosystem showed resilience with non-MEGA deal funding, which are transactions below $100 million, rising 9 percent quarter-on-quarter. 

“This consistency signals a strengthening pipeline backed by sovereign LPs (limited partners) like SVC (Saudi Venture Capital), a growing cohort of accelerators, and successful exits like Rasan’s IPO (initial public offering),” according to MAGNiTT’s report. 

Saudi Arabia leads MENA funding and deal activity 

Saudi Arabia led the EVMs and continued its dominance in the Middle East and North Africa region. 

The Kingdom captured 58 percent of all MENA venture funding and accounted for 41 percent of transactions, far outpacing regional peers. 

According to MAGNiTT, the Kingdom achieved an 87 percent year-on-year increase in non-mega deal funding and a 437 percent rise in series A and B rounds, supported by sizable transactions such as those by Ula.me and Merit Incentives, each raising $28 million. 

The rise in Saudi venture capital investment comes amid a broader rebound in the MENA region. 

Total funding across MENA reached $678 million in the first quarter of 2025, a 58 percent increase year on year, despite a 21 percent decline in deal count to 133 transactions. 

The surge was supported by improved investor sentiment following late 2024 interest rate cuts across the Gulf, along with sustained sovereign fund activity and flagship ecosystem initiatives such as LEAP 2025. 

In terms of historical share, Saudi Arabia’s ascent has been significant. It expanded its share of MENA venture funding to 58 percent in the first quarter of the year, up from 39 percent in 2024 and 51 percent in 2023. 

This upward trajectory has positioned the Kingdom as the central engine of regional VC activity, reversing a period during which the UAE held the lead. 

The ecosystem shift also reflects a structural change in capital allocation. The first quarter saw non-mega deals rise for the fourth consecutive quarter, and early-stage investments in series A and B rounds increased by 50 percent quarter-on-quarter. 

In contrast, Southeast Asia reported its weakest early-stage quarter in seven years, with Singapore’s funding falling by 61 percent year on year to $377 million. 

The gap signals a shift in global investor preference as capital increasingly flows toward markets like Saudi Arabia, where macroeconomic stability, proactive policy, and institutional backing provide a conducive environment for venture growth. 

With 54 deals completed, the Kingdom reported the smallest year-on-year decline in deal count among the region’s top three markets, supported by a robust early-stage pipeline. 

Fintech dominates sector activity 

Fintech remained the most active and well-funded sector across MENA, particularly in Saudi Arabia, contributing 30 percent of all deals and capturing 57 percent of total regional funding. 

The sector saw a 362 percent year-on-year increase in funding, totaling $384 million, driven by Tabby’s $160 million MEGA round and strong underlying demand for digital finance solutions. 

Notably, 35 percent of all fintech deals in the first quarter of 2025 were in the $5 million to $20 million range, up 24 percentage points from the same period last year, demonstrating increasing maturity and scalability across the sector. 

Enterprise Software was the second most transacted and funded vertical, propelled by activity in Saudi Arabia and the UAE, accounting for 75 percent of all sector deals. 

Within this segment, the productivity apps sub-sector achieved record performance with six deals, including Merit Incentives’ $28 million and Qeen.ai’s $10 million rounds. The enterprise category posted a 112 percent annual growth in funding to reach $61 million. 

Saudi Arabia drives top-tier transactions and investor participation 

While deal volume across MENA dropped 21 percent year on year to just 133 transactions — one of the lowest quarterly figures in five years — Saudi Arabia defied the trend, maintaining strong early-stage momentum.

MAGNiTT noted that deal activity in the up to $1 million bracket declined 8 percentage points year on year to just 31 percent, while deals in the $5 million to $20 million and over $20 million brackets saw increases of 4 percentage points and 3 percentage points, respectively. 

This reallocation of capital reflects investors’ growing appetite for scale-ready startups in more advanced funding stages. 

Pre-seed to pre-series A activity in the Kingdom saw a 14 percent increase, highlighting the nation’s strengthening foundation for long-term growth. 

The shift in capital allocation patterns also reinforced Saudi Arabia’s strategic focus. 

The share of deals in the $1 million to $5 million range rose to 46 percent, the highest proportion in five years, mirroring a broader pivot across MENA toward larger, more scalable investment opportunities. 

Simultaneously, the lowest-value ticket size, $0 to $1 million, fell to 31 percent of deals, down 8 percentage points from the previous year. 

Five of the region’s 10 largest deals originated from the Kingdom, including Tabby’s round, the sole mega deal of the quarter, alongside significant rounds by Zension, with $30 million and Merit Incentives. 

According to MAGNiTT, this concentration of large-ticket transactions underscores the depth of investor confidence in the Saudi startup ecosystem.

Investor engagement in the Kingdom was also evident in the breakdown of top deals. The nation hosted more top-10 deals than any other MENA country, with fintech leading as the most represented industry. 

Blue Pool Capital and Hassana Investment Co. emerged as the most prominent backers, jointly deploying an estimated $53.3 million across key transactions, with fintech accounting for four of the top 10 deals. 

Exit environment strengthens on record M&A activity 

Saudi Arabia’s momentum was further underscored by a robust exit environment, with the MENA region recording 21 exits, up 163 percent year on year, marking the strongest quarter for mergers and acquisitions since MAGNiTT began tracking. 

The Kingdom’s IPO pipeline also improved, adding another layer of attractiveness to its startup ecosystem. 

While the regional rebound was attributed to easing inflation, improved liquidity, and pre-US tariff optimism, MAGNiTT emphasized that: “Saudi Arabia’s IPO and M&A momentum are now integral to the region’s exit environment.” 

Despite this surge, the median time to exit via M&A lengthened to six years, up from five in 2024, reflecting continued challenges for early-stage startup liquidity. 

Geopolitical risks introduce uncertainty to venture outlook 

Despite strong regional performance, MAGNiTT highlighted emerging risks that could disrupt momentum. 

“While Q1 2025 was a positive start to the year … that momentum is now under threat,” said Philip Bahoshy, CEO of MAGNiTT. 

He added that the new US tariff policies have created uncertainty in both the public and private markets over the last couple of weeks, which can create a challenge for decision-makers who are likely to be in a risk-off mindset.

“In venture capital, this uncertainty is likely to impact three areas: the deployment of capital from LPs to VCs, VCs’ willingness to make decisions in uncertain times, and finally, startups’ ability to raise funds,” said Bahoshy.

He noted that while global volatility persists, long-term fundamentals in EVMs remain strong. 

“Despite global headwinds, emerging venture markets continue to present compelling long-term opportunities. MENA, in particular, is uniquely positioned for sustained growth thanks to deep pools of local capital, pro-entrepreneurship policy, and active sovereign support,” Bahoshy added. 

“As global investors diversify beyond traditional markets, regions like MENA and Southeast Asia are poised to attract fresh capital — particularly in tech-led sectors that are strategically positioned and less exposed to tariff volatility,” the CEO said.


Real estate demand in Saudi Arabia’s two holy cities hits $2bn

Real estate demand in Saudi Arabia’s two holy cities hits $2bn
Updated 22 April 2025
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Real estate demand in Saudi Arabia’s two holy cities hits $2bn

Real estate demand in Saudi Arabia’s two holy cities hits $2bn
  • High-net-worth individuals eye real estate in Makkah and Madinah as Saudi property sector gains momentum

RIYADH: Saudi Arabia’s real estate sector continues to draw international attention, with high-net-worth individuals from nine Muslim-majority countries preparing to commit $2 billion toward property purchases in Makkah and Madinah, according to a new survey. 

The findings, part of Knight Frank’s latest Private Capital Report, show that 84 percent of global HNWIs surveyed expressed interest in acquiring property in Saudi Arabia — with a clear preference for its two holy cities. 

Nearly half, or 48 percent, of those respondents said they plan to use homes in Makkah as their main residence, pointing to a shift toward long-term occupancy rather than seasonal or purely investment-driven holdings. 

The trend comes as Saudi Arabia overhauls its property sector to position itself as a global tourism and business hub by the decade’s end, in line with its Vision 2030 diversification strategy. 

Faisal Durrani, partner and head of research for the Middle East and North Africa at Knight Frank, said: “The region’s sustained economic growth, underpinned by ambitious national visions and strategic policy reforms, has reinforced its position as a global investment hub.” 

Durrani added that real estate remains a preferred investment vehicle for ultra-high-net-worth individuals seeking to preserve wealth. “Across the MENA region, demand for prime and super-prime homes has reached unprecedented levels, fueled by both local and international buyers seeking security, stability and long-term growth,” he said. 

Earlier this month, S&P Global said the outlook for Saudi Arabia’s property sector remains positive in the near term, driven by population growth, rising tourism, and Vision 2030-led initiatives. The Real Estate General Authority projects the market to reach $101.62 billion by 2029, with a compound annual growth rate of 8 percent starting in 2024. 

UAE draws global wealth 

Regionally, the UAE continues to attract high-net-worth migration. Knight Frank noted that 7,200 millionaires relocated to the country in 2024, boosting its total resident population of affluent individuals to 134,000. 

The report also found the number of dollar millionaires in the UAE stood at 130,500 as of December 2024, ranking it the 14th largest wealth market globally. The emirates also host 325 centi-millionaires — those with liquid wealth exceeding $100 million — and 28 billionaires. 

According to Knight Frank, 31 percent of the millionaires who moved to the UAE over the past decade came from India, followed by 20 percent from the Middle East and 14 percent from Russia and the Commonwealth of Independent States. 

“With a record-breaking 142,000 millionaires forecast to change their domicile globally in 2025, the UAE stands poised to capture a significant share of this wealth migration wave, strengthening its status as a wealth hub that has successfully transitioned from regional player to global force,” said Dominic Volek, group head of private clients at Henley & Partners, in a statement.  

Luxury sales surge in Dubai 

Wealth migration is translating into a property boom in Dubai, now the world’s most active market for $10 million-plus home sales for two consecutive years, ahead of London and New York. 

In 2024, the city recorded 435 ultra-luxury home transactions, compared to 434 the previous year. A record 153 such deals were closed in the fourth quarter of 2024 alone, while the first quarter of 2025 saw another 111, up 5.7 percent from the same period last year. 

“Dubai’s luxury residential market continues to defy gravity. Demand, particularly from international buyers, remains unrivaled on the global stage,” said Durrani. “In 2024 alone, Dubai not only led the world in the number of $10 million-plus home sales, but also topped total transaction value, with 435 deals worth $7.1 billion.” 

“Dubai has firmly established itself as the global epicenter for ultra-luxury real estate – surpassing legacy markets like New York, London and Hong Kong. It’s a staggering achievement for a market that, until recently, was considered relatively young,” he added. 

Palm Jumeirah retained its position as Dubai’s premier ultra-prime location, recording 34 transactions worth more than $10 million in the first quarter of 2025, with a combined value of $562.8 million. 

Emirates Hills followed, with 15 deals totaling $356.7 million. 

“Dubai has cemented its position as a premier destination for HNWI seeking real estate for personal use or for investment purposes, with a distinct focus by the global elite on making the city a permanent base or a second home,” said Nicholas Spencer, Knight Frank’s partner- Private Capital and Family Enterprises, MENA.  

Broader MENA trends  

In the wider region, Knight Frank said Qatar’s residential market is also drawing interest from GCC nationals and GCC-based expatriates. 

The firm identified $537.5 million in private capital globally that is actively seeking residential real estate in Qatar. 

Meanwhile, Egypt’s real estate market remains a key area of interest for GCC investors. 

“GCC investors’ interest in Egypt’s second homes market underscores the country’s appeal as a prime real estate destination. The combination of lifestyle benefits, potential for high rental yields, affordability and strong strategic ties to the GCC all add to the country’s allure,” added Knight Frank.