The landscape of Saudi Arabia continues to evolve with significant developments this week, spotlighting a rent freeze, a surge in property sales, evolving foreign ownership regulations, and an acceleration in startup growth. These key stories underscore the Kingdom’s dynamic economic and business environment, as investments and innovative projects gain momentum. Saudi rent freeze policies, along with impressive figures in Riyadh’s real estate market and transformations in the tourism sector, offer insight into how the region is adapting to new economic ambitions.
Riyadh’s Grade A offices near full occupancy, residential deals soar, and hospitality sees a 48 percent surge in international visitors to Saudi Arabia.
Saudi Arabia Freezes Rent Increases in Riyadh for Five Years
The Saudi government has announced a five-year freeze on rent increases for both residential and commercial properties in Riyadh. This royal decree came into effect on September 25, 2025, as part of broader efforts to mitigate rising living costs in the capital.
Directed by Crown Prince and Prime Minister Mohammed bin Salman, the Council of Ministers has approved these measures, which will apply to all existing and future rental agreements. The Real Estate General Authority has been empowered to extend these measures to other regions with the necessary approvals.
Riyadh Property Sales Surge 63% to $17.5bn
The first half of 2025 saw Riyadh’s residential property sales skyrocket by 63 percent year-on-year, reaching an impressive SR65.7 billion (approximately $17.5 billion), according to research from Cavendish Maxwell.
During this period, the city recorded 35,600 property transactions, a substantial 10 percent increase from the same timeframe last year. Meanwhile, Jeddah’s residential market also demonstrated marked growth, with property sales reaching SR18.3 billion (about $4.9 billion), a 34 percent increase over the previous year.
Markets soar as reports suggest foreign ownership caps could be lifted.
Potential Changes in Foreign Ownership Rules Spark Market Excitement
Saudi Arabia is considering substantial changes to its regulations on foreign ownership, potentially removing limits on stakes in publicly listed companies. Following a Bloomberg report, the Tadawul All-Share Index experienced a remarkable uptick, soaring over 5 percent—its highest increase in five years—as investors responded with enthusiasm.
This proposed removal of restrictions, which currently allows foreign entities to own no more than 49 percent of any listed company, is indicative of the Kingdom’s desire to attract more foreign investments. If finalized, these reforms promise to reshape the market landscape significantly.
Magna in Saudi Arabia’s NEOM will span 120km along the Gulf of Aqaba.
Tourism Expansion: NEOM’s Magna Project Redefines Luxury
Saudi Arabia’s tourism sector is witnessing a remarkable transformation fueled by ambitious megaprojects and strategic events. NEOM is set to unveil the Magna project, a spectacular 120 km-long development along the Gulf of Aqaba focusing on luxury and sustainability.
The project will feature 12 futuristic resorts, melding state-of-the-art design with an eco-conscious approach to tourism. Expected to redefine the leisure and luxury travel landscape, Magna is poised to attract both visitors and investors to Saudi Arabia.
Saudi Arabia’s Airports Continues to Excel in Global Rankings
In its recent monthly performance report, the General Authority of Civil Aviation (GACA) revealed that Riyadh’s King Khalid International Airport led in operational compliance among international airports with more than 15 million passengers.
With an impressive compliance rate of 82 percent, the airport topped the list, followed closely by King Abdulaziz International Airport in Jeddah, which scored 73 percent. These rankings emphasize a commitment to enhancing service quality within the Kingdom’s aviation sector.
Saudi Arabia to build Qiddiya high-speed rail connecting Riyadh airport and Qiddiya City.
Development of Qiddiya High-Speed Rail Project
The Kingdom is set to establish a high-speed rail line linking key areas including Riyadh airport, the King Abdullah Financial District, and Qiddiya City. This initiative demonstrates Saudi Arabia’s commitment to enhancing transportation infrastructure as part of its Vision 2030 goals.
Registration for partners and investors is now open, as the Royal Commission for Riyadh City works alongside various stakeholders to execute this public-private partnership (PPP) venture. This high-speed rail aims to link major urban centers within a remarkably short travel time.
Startup Innovations: Saudi Arabia’s SME Sector Expands
In Q2 2025, Saudi Arabia witnessed the establishment of over 80,000 new small and medium-sized enterprises (SMEs), bringing the total to 1.7 million active commercial records in the Kingdom. This emerging trend highlights the vibrant entrepreneurial spirit among both youth and women, with 38 percent and 47 percent of SME ownership respectively.
Important VAT Compliance Notice for Businesses
The Zakat, Tax and Customs Authority (ZATCA) is urging VAT-registered businesses with annual supplies exceeding SR40 million (around $10.7 million) to ensure their August tax returns are filed by September 30. Companies are encouraged to submit their filings promptly to avoid facing penalties that may range from 5 percent to 25 percent of the VAT owed.
Roshn Saudi League Lands Major Global Broadcast Deals
The Roshn Saudi League (RSL) has secured pivotal media agreements with leading global broadcasters, extending its reach to over 180 territories for the upcoming 2025-26 season. These strategic partnerships, which include ESPN, Fox Sports, DAZN, and YouTube, signify a growing international interest in the Saudi Pro League.
This expansion enhances the visibility of matches worldwide, confirming the league’s ambition to establish itself as one of the foremost football competitions in the world.
FII9 Conference to Gather Global Leaders in Riyadh
The upcoming Future Investment Initiative (FII) conference, known as FII9, will take place from October 27-30, 2025, at the King Abdulaziz International Conference Centre in Riyadh. The event promises to attract 15 world leaders, over 600 speakers, and top CEOs, focusing on critical issues including innovation and investment strategies.
Themed “The Key to Prosperity: Unlocking New Frontiers of Growth,” FII9 aims to promote discourse on emerging global challenges and opportunities, reaffirming its significance as an influential platform for investment and ideas.