Sky-high architecture shows Kingdom’s business ambitions

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

Sky-high architecture shows Kingdom’s business ambitions
  • Influx of more than 180 multinational headquarters is generating strong demand for premium towers

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

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

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

Verticality is the new normal

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

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

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

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

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

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

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

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

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

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

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

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

High-rise hype and high-stakes investing

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

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

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

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

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

A shift in the  mindset

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

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

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

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

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

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

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

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

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

Architectural shift

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

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

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

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

Sachin Kerur, mmanaging partner at Reed Smith

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

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

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

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

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

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

While Kerur acknowledges cultural hesitations, he remains optimistic.

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

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

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

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

Identity and investment

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

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

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

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


Oil Updates — crude falls on prospect of more OPEC+ supply, easing risks in Mideast

Oil Updates — crude falls on prospect of more OPEC+ supply, easing risks in Mideast
Updated 30 June 2025
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Oil Updates — crude falls on prospect of more OPEC+ supply, easing risks in Mideast

Oil Updates — crude falls on prospect of more OPEC+ supply, easing risks in Mideast

SINGAPORE: Oil prices fell on Monday as an easing of geopolitical risks in the Middle East and the prospect of another OPEC+ output hike in August improved supply expectations amid persistent uncertainty over the outlook for global demand.

Brent crude futures fell 12 cents, or 0.18 percent, to $67.65 a barrel by 10:18 a.m. Saudi time, ahead of the August contract’s expiry later on Monday. The more active September contract was at $66.56, down 24 cents.

US West Texas Intermediate crude dropped 36 cents, or 0.55 percent, to $65.16 a barrel.

Last week, both benchmarks posted their biggest weekly decline since March 2023, but they are set to finish higher in June with a second consecutive monthly gain of more than 5 percent.

A 12-day war that started with Israel targeting Iran’s nuclear facilities on June 13 pushed up Brent prices. They surged above $80 a barrel after the US bombed Iran’s nuclear facilities and then slumped to $67 after President Donald Trump announced an Iran-Israel ceasefire.

The market has stripped out most of the geopolitical risk premium built into the price following the Iran-Israel ceasefire, IG markets analyst Tony Sycamore said in a note.

Further weighing on the market, four delegates from OPEC+, which includes allies of the Organization of the Petroleum Exporting Countries, said the group was set to boost production by 411,000 barrels per day in August, following similar-sized output increases for May, June and July.

OPEC+ is set to meet on July 6 and this would be the fifth monthly increase since the group started unwinding production cuts in April.

However, bearish pressure from concerns over slower global oil demand, particularly from China, is likely to persist.

Uncertainty around global growth continues to cap prices, said Priyanka Sachdeva, senior market analyst at Phillip Nova.

China’s factory activity contracted for a third straight month in June, as weak domestic demand and faltering exports weighed on manufacturers amid US trade uncertainty.

In the US, the number of operating oil rigs, an indicator of future output, fell by six to 432 last week, the lowest level since October 2021, Baker Hughes said.


Closing Bell: Saudi main index rises to close at 11,202

Closing Bell: Saudi main index rises to close at 11,202
Updated 29 June 2025
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Closing Bell: Saudi main index rises to close at 11,202

Closing Bell: Saudi main index rises to close at 11,202
  • Parallel market Nomu gained or 0.72% to close at 27,248.13
  • MSCI Tadawul Index rose 1.07% to close at 1,434.07

RIYADH: Saudi Arabia’s Tadawul All Share Index rose on Sunday, gaining 134.37 points, or 1.21 percent, to close at 11,202.64.

The total trading turnover of the benchmark index was SR5.08 billion ($1.35 billion), as 218 of the stocks advanced and 31 retreated. 

The Kingdom’s parallel market Nomu gained 195.03 points, or 0.72 percent, to close at 27,248.13. This comes as 57 of the listed stocks advanced while 30 retreated. 

The MSCI Tadawul Index gained 15.19 points, or 1.07 percent, to close at 1,434.07. 

The best-performing stock of the day was Saudi Industrial Development Co., whose share price increased 10 percent to SR30.14. 

Other top performers included Naseej International Trading Co., whose share price rose 9.99 percent to SR 96.00, as well as Fawaz Abdulaziz Alhokair Co., also known as Cenomi Retail, whose share price rose 9.97 percent to SR 22.39. According to Tadawul, Cenomi Retail’s shares also jumped by 100 percent in two months despite a sell recommendation from research houses.

Specialized Medical Co. recorded the most significant drop, falling 1.88 percent to SR22.92.

Americana Restaurants International PLC — Foreign Co. saw its stock prices fall 1.26 percent to SR2.35.

Nahdi Medical Co. also saw its stock prices decline 1.24 percent to SR127.20.

On the announcements front, Etihad Atheeb Telecommunication Co., also known as GO Telecom, has announced its annual consolidated financial results for the period ending March 31.

According to a Tadawul statement, the firm recorded a net profit of SR223 million during the year, reflecting a 14.36 percent increase compared to the same period a year earlier. The climb is attributed to an increase in revenue of SR446 million, offset by a rise in the cost of revenue of SR320 million, an upsurge in expected credit losses on trade receivables of SR24.6 million, and a growth in general and administrative expenses of SR24 million. 

There was also a decrease in financing costs by SR690,000 due to the recognition of commission income on Islamic deposits during the current year, amounting to SR20 million.

GO Telecom has decided to distribute SR10.1 million worth of cash dividends to the company’s shareholders for the fiscal year ending on March 31. According to a Tadawul statement, the number of shares eligible for dividends stands at 33.99 million, with a dividend per share of 30 halals and a dividend percentage to the share par value of 3 percent.

GO Telecom ended the session at SR105.00, up 2.49 percent. 

The Saudi Exchange has approved Saudi Azm for Communication and Information Technology Co.’s request to transfer from Nomu — Parallel market to the main market, with a capital of SR30 million and 60 million shares. 

The company’s shares will remain listed on Nomu – Parallel market until the deadline for publishing the transfer document. 

The issuer is required to publish the transfer document within three trading days after the Saudi Exchange announces its approval of the transfer request. The transfer document will be accessible to the public for 10 trading sessions through the websites of the issuer, Tadawul, and the financial adviser.

Tadawul also approved Obeikan Glass Co.’s request to transfer from Nomu — Parallel market to the main market, with a capital of SR320 million and 32 million shares.


Saudi IPO proceeds hit $2.8bn in H1 as flynas leads market activity

Saudi IPO proceeds hit $2.8bn in H1 as flynas leads market activity
Updated 29 June 2025
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Saudi IPO proceeds hit $2.8bn in H1 as flynas leads market activity

Saudi IPO proceeds hit $2.8bn in H1 as flynas leads market activity
  • Leading the activity was the public offering of low-cost carrier flynas, which raised SR4.1 billion
  • Umm Al-Qura for Development and Construction Co. raised $523.1 million

RIYADH: Saudi Arabia’s equity capital market maintained strong momentum in the first half of 2025, with six companies raising a combined $2.8 billion through initial public offerings on the main Tadawul exchange.  

According to an analysis by Forbes Middle East, leading the activity was the public offering of low-cost carrier flynas, which raised SR4.1 billion ($1.1 billion) in what marked one of the region’s largest aviation listings.  

The rise in IPO listings comes amid broader financial reforms in Saudi Arabia, as the Capital Market Authority introduces new frameworks — including regulations for special purpose acquisition companies — aimed at expanding funding avenues and enhancing private-sector participation. 

In its analysis, Forbes stated: “The momentum underscores investors’ growing appetite for sectoral diversification across aviation, healthcare, finance, and industry, while affirming Riyadh’s long-term bet on privatization and public market expansion under Vision 2030.” 

The flynas IPO drew overwhelming demand, with institutional subscriptions oversubscribed nearly 100 times, and the retail tranche covered 349.7 percent. The offering comprised 51.3 million ordinary shares, representing 30 percent of the company’s post-offering capital. 

“In 2024, flynas generated $2 billion (SR7.6 billion) in revenue, marking an 18.8 percent increase from the previous year, while net profit rose 8 percent to $115.6 million (SR433.5 million),” the analysis added. 

A view of the sign showing the logo of Saudi Arabia’s Stock Exchange Market (Tadawul) bourse in the capital Riyadh. File/AFP

As of June 14, the airline was operating 139 routes, connecting over 70 domestic and international destinations across 30 countries, with a weekly schedule exceeding 2,000 flights. 

Diverse listings 

Forbes also highlighted several other notable IPOs that reflect diversification across key sectors. 

Umm Al-Qura for Development and Construction Co. raised $523.1 million by selling 130.7 million shares at $4 each — representing 9.09 percent of its total capital. 

The company leads the Masar destination project, a major development transforming the western gateway of the Holy City, featuring hotels, residential units, retail spaces, and infrastructure. 

Aligned with Saudi Arabia’s drive to boost religious tourism, the IPO proceeds will support ongoing construction, improve transport connectivity, and attract global hospitality brands in line with national tourism goals. 

Among the companies to list this year was Riyadh-headquartered SMC Healthcare, which raised $500 million through its Tadawul debut, reflecting growing investor appetite for healthcare stocks as the Kingdom expands private sector involvement in the industry. The IPO comprised 75 million shares priced at $6.70 each, representing 30 percent of the company’s total share capital. 

Derayah Financial, an asset management and brokerage firm, is another company that secured $399.6 million through its offering. Shares were priced at $8 each and attracted strong interest from both retail and institutional investors, supported by the company’s digital-first model and established brand presence. 

In February, Derayah offered 20 percent of its share capital — 49.9 million shares — through a listing on the Main Market, providing investors access to its expanding digital investment platform. 

The stock was listed in March. By the end of the first quarter, Derayah reported 555,000 client accounts, while assets under management rose 5 percent year-to-date to $4.8 billion. 

This year also saw United Carton Industries Co. raise $160 million by offering 12 million shares at $13.30 each, representing 30 percent of its capital. The company is expanding capacity to meet rising demand for corrugated packaging, a key input in Saudi Arabia’s growing industrial sector. 

Arabian Co. for Agricultural and Industrial Investment, also known as Entaj, raised $120 million through a February IPO. The poultry producer floated 9 million shares, leveraging strong demand amid the Kingdom’s drive to enhance local food security. Entaj nearly doubled its daily processing capacity to 600,000 birds by the end of 2024. 

Regional dominance 

The rise in listings reinforces Tadawul’s position as the Arab world’s most valuable stock exchange. According to the Arab Federation of Capital Markets, the Saudi exchange accounted for 62 percent of total market capitalization across regional bourses in 2024, far ahead of the Abu Dhabi Securities Exchange, which held 18.6 percent. 

Tadawul's benchmark TASI index ended December 2024 at 12,037 points, up 3.39 percent month-on-month. Average daily trading value reached SR5.2 billion, while total monthly trading volume stood at SR119.6 billion, according to the Arab Monetary Fund. 

Analysts expect IPO momentum to continue in the second half of 2025, especially in energy-adjacent sectors, fintech, and transportation, as the Capital Market Authority accelerates approvals and Vision 2030-linked corporates seek broader capital access. 

The Saudi stock market was among the region’s top performers in December, buoyed by improved liquidity and investor confidence. TASI closed the month at 12,037 points, with daily trading values averaging SR5.2 billion and total trading reaching SR119.6 billion, the Arab Monetary Fund reported.


Aramco cuts July propane, butane prices amid market shifts

Aramco cuts July propane, butane prices amid market shifts
Updated 29 June 2025
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Aramco cuts July propane, butane prices amid market shifts

Aramco cuts July propane, butane prices amid market shifts
  • Oil giant set propane at $575 per tonne and butane at $545 per tonne

RIYADH: Saudi Aramco has lowered its official selling prices for propane and butane for July 2025, reflecting changing global market dynamics.

In a statement released on Sunday, the oil giant set propane at $575 per tonne and butane at $545 per tonne—both down $25 from the previous month. The adjustment continues a downward trend driven by evolving supply-demand conditions.

Propane and butane, classified as liquefied petroleum gases, are essential fuels for heating, transport, and petrochemical production. Aramco’s monthly pricing serves as a key benchmark for LPG shipments from the Middle East to the Asia Pacific.

The global LPG market is undergoing a reshuffle as China shifts away from US imports due to steep tariffs, increasingly turning to Middle Eastern suppliers. In turn, American cargoes are being rerouted to Europe and other parts of Asia.

This realignment is putting pressure on global LPG prices and weakening demand for US shale byproducts, impacting both American shale producers and Chinese petrochemical firms. Meanwhile, the trend is spurring greater interest in alternative feedstocks like naphtha.

Middle Eastern exporters are benefiting from the shift, stepping in to fill the gap left by falling US exports to China. Buyers in Asia, including Japan and India, are also taking advantage of the softer prices to strike more favorable supply deals.


Egypt to offer Hurghada airport to private sector by end of 2025

Egypt to offer Hurghada airport to private sector by end of 2025
Updated 29 June 2025
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Egypt to offer Hurghada airport to private sector by end of 2025

Egypt to offer Hurghada airport to private sector by end of 2025
  • President El-Sisi issued directives to proceed with developing Egyptian airports through international partnerships
  • Plan supports Egypt Vision 2030

RIYADH: Egypt plans to offer Hurghada International Airport to the private sector by the end of 2025 as part of a broader strategy to modernize its aviation sector and attract foreign investment, President Abdel Fattah El-Sisi said.  

The announcement came during a meeting in Al-Alamein City with Minister of Civil Aviation Sameh El-Hefny and EgyptAir In-Flight Services Chairperson Soheir Abdullah, where El-Sisi reviewed the national roadmap for enhancing civil aviation infrastructure and operations. 

The move forms part of a national strategy designed in partnership with the International Finance Corp., which is advising on a new public-private participation model for the country’s airports. The framework is expected to be finalized by summer 2025 and will target 11 major airports while maintaining public ownership. 

In an official post, Ambassador Mohamed El-Shenawy, spokesman for the presidency, said the meeting reviewed the comprehensive strategic vision for the advancement of the entire civil aviation sector, including air navigation, aircraft fleet development, airport upgrades, and enhancement of human resource capabilities. 

“These efforts are part of the state’s broader plan to improve the efficiency of the aviation sector, increase its capacity, and enhance the quality of services provided to travelers, in support of the national goal to raise the number of tourists to 30 million,” the post added. 

Egyptian President Abdel Fattah El-Sisi meets with Minister of Civil Aviation Sameh El-Hefny and EgyptAir In-Flight Services Chairperson Soheir Abdullah. Facebook/Spokesman for the Egyptian Presidency

El-Sisi issued directives to proceed with developing Egyptian airports through international partnerships centered on efficiency and sustainability, while ensuring an attractive investment environment that guarantees economic feasibility and long-term growth. 

The plan supports Egypt Vision 2030, the country’s national development blueprint, which includes transforming airports into regional aviation hubs equipped with the latest global systems.  

El-Sisi also reviewed the “New Republic Air Gateway” project at Terminal 4 of Cairo International Airport. Once completed, the new terminal will increase the airport’s capacity by at least 30 million passengers, pushing total throughput beyond 60 million annually.

The project is designed in line with international standards for safety, security, and environmental sustainability. 

The meeting also touched on Egypt’s achievements in air navigation, especially during recent regional airspace closures that increased daily traffic to over 1,600 flights. 

According to the presidential spokesman, organizations including Eurocontrol, the International Civil Aviation Organization, and the International Air Transport Association praised Egypt’s air traffic controllers for maintaining operational stability and service continuity. 

Additionally, the meeting highlighted EgyptAir’s recent successes. The national carrier was named “Best Airline Staff in Africa” for 2025 by Skytrax at the Paris Air Show. 

Other accolades included Best Economy Class Meals, Most Improved Airline in Africa for a second consecutive year, and Best Cabin Crew in Africa. 

The airline advanced 20 positions in the global ranking to 68th place out of more than 325 carriers. 

The minister said EgyptAir plans to expand its fleet to 97 aircraft by 2028-29. Efforts are also underway to upgrade in-flight services, infrastructure, and ground operations, as well as enhance lounge amenities and punctuality. 

These initiatives are aimed at strengthening the airline’s global competitiveness and overall passenger experience.