Knight Frank – Saudi Arabia Commercial Market Review, Summer 2024

The Kingdom of Saudi Arabia saw its non-oil revenue reach 50% of GDP in 2023, resulting in an economic output of US$ 453 billion. The commercial real estate market is thriving across all subsectors, with the office market in Riyadh being a key beneficiary of the increasing demand. Investors are flocking to the Saudi market, with a record number of investment licenses issued in Q4 2023. The hospitality sector is booming, with the Kingdom surpassing its 2030 visitor target ahead of schedule. Saudi Arabia is emerging as the region's main data hub, with significant growth in the data center market. Riyadh, Jeddah, and Dammam are key players in the data center market, hosting the majority of live IT supply. The office market in Riyadh, Jeddah, and Dammam is experiencing rising demand, leading to increased rents and occupancy rates. Overall, the commercial real estate market in Saudi Arabia is poised for further growth and investment.