Home ownership eyed by 77% of Saudi-based expats, reveals survey

According to the report, Riyadh has 131 residential compounds, with 38 categorized as Western and 93 as non-Western. Jeddah, on the other hand, has 98 gated compounds, including 19 Western and 79 non-Western. (Shutterstock)
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Updated 17 March 2024
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Home ownership eyed by 77% of Saudi-based expats, reveals survey

  • Primary motivation for property purchasing in KSA is its perceived status as a good investment

RIYADH: A new premium residency visa has spurred home-ownership demand among Saudi-based expats, with 77 percent now looking to buy a property, a survey has revealed.

Global property consultancy Knight Frank surveyed 241 expatriates in Saudi Arabia, and discovered the primary motivation for real estate purchasing in the Kingdom, especially among millennials, is its perceived status as a good investment.

The desire for a close proximity to work and cultural or religious factors followed closely behind.

The survey findings also indicated a preference among expats for completed apartments over villas, with a potential demand of $863 million from the white-collar workforce for giga-project properties, alongside notable interest in branded residences among higher-income brackets.

The newly introduced premium residency visa linked to property ownership aims to meet some of the demand, however, the survey indicates that only 9 percent of respondents are willing to spend over SR3.5 million ($930,000), while the visa threshold is set at SR4 million.

Challenges arise as most respondents are comfortable allocating up to SR1.5 million for property in Saudi Arabia, with a substantial portion unwilling to exceed SR750,000. 

Additionally, average property prices in Riyadh and Jeddah range between SR800,000 and SR2.7 million, posing further constraints for this group.

Survey findings also underscore a greater propensity for investment among millennials, with 22 percent allocating budgets exceeding SR2.5 million, while female expats show a higher-end budget allocation surpassing SR3.5 million. 

The total combined budget among the 241 surveyed expats amounts to SR318.3 million. 

The urgency of demand according to Knight Frank is not immediate, as survey results revealed that only 26 percent are looking to buy this year while 44 percent are aiming for a purchase within the next year to 24 months.

This cautious approach, as per the firm, could be attributed to the significant rise in house prices over the past three years, with Riyadh experiencing apartment prices at SR5,150 per sq. m. and villa prices at SR4,900 per sq. m.

This surge in demand is driven by the government’s goal of achieving a 70 percent home ownership rate by 2030, supported by mortgage programs. However, according to Knight Frank, the increased demand has also led to affordability challenges, resulting in a 16 percent decline in overall transactional activity last year.

The firm emphasizes the substantial influence of the Kingdom’s Vision 2030 in making Riyadh the top choice for property purchases, particularly among millennials. This is attributed to the city’s appeal as an attractive destination for tourism and entertainment, thanks to the various entertainment seasons and a wide array of cultural, sporting, and arts events created by the authorities.

In the survey, Jeddah emerged as the second most desired city for property purchase, followed by Dammam and Madinah.

The survey revealed a notable shift in expat preferences, with 68 percent expressing a strong inclination towards owning an apartment rather than a villa. This preference is particularly strong among those aged 35-45 and 45-55, the firm added.

Additionally, the choice between apartments and villas seems to vary with income levels. For instance, 92 percent of expats earning more than SR40,000 per month prefer villas, while 60 percent of those earning between SR30,000 and SR40,000 per month lean towards townhouses.

The fact that high earners are prepared to spend more on giga-project homes will be welcome news for developers, but the key will be to offer distinctive community features and amenities that go above and beyond.

Mohamad Itani, Knight Frank partner and head of residential project sales and marketing

The shift from villas to apartments for the majority of respondents is likely influenced by factors such as the higher cost associated with villas, affordability considerations, and possibly differing cultural preferences compared to Saudi nationals, the firm said.

The appeal of apartments is further highlighted by the fact that 53 percent of surveyed expats expressed a preference for owning a two or three bedroom apartment. This inclination is likely due to the smaller family sizes typically found among expats compared to Saudi nationals.

Knight Frank showed that 63 percent of respondents prefer to buy completed properties, while 26 percent are interested in off-plan purchases. This preference may have implications for developers according to the firm as they navigate Saudi Arabia’s 660,000 residential unit pipeline in the next six years.

Expat property buyers are willing to pay an average annual service charge rate of 5.9 percent of the property value.

According to Knight Frank, the rising demand for residential communities is driven by an increasing number of Western expatriates seeking a lifestyle that matches their expectations. 

These gated communities, known for their amenities such as swimming pools, cafes, and fitness centers, offer a high standard of living, the firm noted.

Western compounds are characterized by their larger size, superior services, extensive amenities, and heightened security, typically catering to Western expats. 

In contrast, non-Western compounds are smaller, with fewer facilities, and primarily occupied by Arab and Asian expats. 

In Knight Frank’s survey of expats, a notable appeal was found for residential compounds, with 75 percent expressing interest, a figure that rises to 77 percent among millennials.

This interest, as per the firm, correlates closely with income, with the percentage climbing to 94 percent among those earning over SR40,000 monthly. Among expats under 35, this percentage rises further to 85 percent, with females showing particularly heightened interest compared to males.

According to the report, Riyadh has 131 residential compounds, with 38 categorized as Western and 93 as non-Western. Jeddah, on the other hand, has 98 gated compounds, including 19 Western and 79 non-Western.

The top three sought-after features in a residential community include onsite essentials such as supermarkets and clinics, management services including maintenance and security, and transportation facilities like bike storage and parking.

According to Knight Frank, NEOM emerged as the most sought-after giga-project among expats. However, discrepancies between their budgets and the project’s expected prices posed a limitation. Nonetheless, a considerable proportion of respondents, particularly millennials, expressed willingness to reconsider their budget to afford a residence in NEOM.

Mohamad Itani, Knight Frank partner and head of residential project sales and marketing, said: “High earning expats are eager to own property in the Kingdom’s giga-projects and the fact that high earners are prepared to spend more on giga-project homes will be welcome news for developers, but the key will be to offer distinctive community features and amenities that go above and beyond.”

The average budget for giga-projects among expats stands at SR2.7 million, surpassing the SR1.7 million average elsewhere in the Kingdom. This translates to a total spending power of approximately $152 million among Saudi surveyed expats. When projected to the Kingdom’s 1.2 million white-collar workforce, the potential dry powder capital is estimated to be $863 million.

The top pull factors for owning a home in any of the giga-projects, as indicated by respondents, were parks and green spaces and family entertainment. Following closely were investing in Saudi Arabia’s future Vision 2030, world-class entertainment and theme parks, and climate. These factors outline the key considerations expats have regarding giga-project homeownership.

However, expats emphasized that local bank financing options would significantly influence their decision, especially given the discrepancy revealed between expats’ budgets and the current market pricing for branded residences, which surpasses what they can afford.

According to Knight Frank, the rising popularity of branded residences in Saudi Arabia presents a lucrative opportunity for developers, considering the strong demand from both global high net worth individuals and expats.

With 55 percent of expats willing to spend up to SR1.5 million, there is potential for developers to introduce branded products into their residential portfolios.

Offering timeshare options and collaborating with local banks to provide mortgages could further stimulate demand, the firm concluded.


Pakistan to unveil Economic Survey 2024-25 on Monday

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Pakistan to unveil Economic Survey 2024-25 on Monday

  • The survey will include details about performance and trends of various sectors in outgoing fiscal year
  • The survey will be followed by federal budget, which is expected to lay out targets for macroeconomic stability

ISLAMABAD: Pakistan will unveil its Economic Survey 2024-25 tomorrow, Monday, and detail major socio-economic achievements of the outgoing fiscal year, Pakistani state media reported.

The survey will include details about performance and economic trends of various sectors, including agriculture, industry, services, energy, information technology and telecommunications, capital markets, health, education and transport.

Annual trends of major economic indicators regarding inflation, trade and payments, public debt, population, employment, climate change, and social protection will also be part of the survey.

“Finance Minister Muhammad Aurangzeb will release the Economic Survey-2024-25 at a ceremony to be held in Islamabad,” the Radio Pakistan broadcaster reported.

The survey will be followed by the presentation of the national budget. The earlier dates for the announcement of Economic Survey 2024-25 and federal Budget 2025-26 were June 1 and June 2, respectively, but the government extended the dates to June 6 and June 7.

Pakistan is currently bolstered by a $7 billion International Monetary Fund (IMF) program and is navigating a long path to economic recovery. The country’s annual inflation rate rose to 3.5 percent in May, though its macroeconomic outlook has improved in recent months, supported by a stronger current account balance and increased remittances.

The Pakistani government says it remains committed to maintaining macroeconomic stability, accelerating structural reforms, and ensuring that economic growth translates into real and inclusive progress for all citizens.

Earlier this month, Planning Minister Ahsan Iqbal announced the government has allocated Rs1 trillion ($3.5 billion) for development projects in the upcoming budget for fiscal year 2025-26.


Saudi ports post 13% rise in container volume in May: Mawani 

Updated 08 June 2025
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Saudi ports post 13% rise in container volume in May: Mawani 

  • Imported containers rose 15.84% from a year earlier to 292,223 TEUs
  • Exported volumes increased 9.38% to 279,318 TEUs

RIYADH: Saudi Arabia’s seaports handled 720,684 twenty-foot equivalent units in May, a 13 percent year-on-year jump, driven by growth in imports, exports, and transshipment activity, official figures showed. 

According to data from the Saudi Ports Authority, also known as Mawani, imported containers rose 15.84 percent from a year earlier to 292,223 TEUs, while exported volumes increased 9.38 percent to 279,318 TEUs.

Transport, or transshipment, containers also climbed 12.89 percent to 149,143 TEUs, reflecting the Kingdom’s growing role as a regional trade hub. 

The uptick in activity highlights the ongoing expansion of port infrastructure and logistics services across the country. It also supports the goals of Saudi Arabia’s National Transport and Logistics Strategy, which seeks to position the Kingdom as a global logistics center under Vision 2030. 

In a release, Mawani stated: “The total tonnage handled — general cargo, solid bulk cargo, and liquid bulk cargo — increased by 1.40 percent to reach 21,337,699 tonnes compared to 21,042,684 tonnes during the same period last year.”  

The uptick in activity highlights the ongoing expansion of port infrastructure and logistics services across the Kingdom. Shutterstock

It added: “The total general cargo amounted to 935,932 tonnes, solid bulk cargo 5,059,899 tonnes, and liquid bulk cargo 15,341,868 tonnes.”   

The ports received 1.63 million heads of livestock, up 61.22 percent compared to 1.01 million during the same period last year. 

Maritime traffic also picked up, with vessel calls rising 9.39 percent to 1,083 ships, while the number of passengers grew 68.15 percent to reach 95,231. The number of vehicles handled increased by 13.09 percent year on year to 84,352 units. 

The positive momentum follows a strong performance in April, when Saudi ports handled 625,430 standard containers, up 13.4 percent from a year earlier. 

In 2024, Mawani announced several major initiatives, including agreements and groundbreaking projects to establish eight new logistics parks and hubs at Jeddah Islamic Port and King Abdulaziz Port in Dammam, with a combined private sector investment of approximately SR2.9 billion ($773 million). 

These efforts are part of a broader strategy to enhance the competitiveness of Saudi ports and reinforce the Kingdom’s position as a global trade and logistics hub. 

The initiatives form part of a larger SR10 billion investment plan to develop 18 logistics parks across Saudi terminals, all overseen by Mawani. 


Next-Gen HNWI prefer Middle East as favorite investment destination: Capgemini 

Updated 08 June 2025
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Next-Gen HNWI prefer Middle East as favorite investment destination: Capgemini 

  • Saudi Arabia in particular is aggressively courting international investors and ultra-wealthy individuals, report says
  • Global HNWI population increased by 2.6% year on year in 2024

RIYADH: Next-generation high-net-worth individuals consider the Middle East as their preferred investment destination, thanks to geopolitical security and economic stability, according to an analysis. 

In its latest report, consulting firm Capgemini revealed that Saudi Arabia in particular is aggressively courting international investors and ultra-wealthy individuals, thanks to the Vision 2030 economic diversification program. 

The findings by the Paris-based company align with the views shared by Henley & Partners in April, which said that Riyadh and Jeddah are among the fastest-growing cities in the world for millionaires. 

According to Henley & Partners, more than 20,000 people with liquid investable wealth of $1 million or more are now based in the Saudi capital, while Jeddah is home to 10,400 millionaires. 

Riyadh and Jeddah are among the fastest-growing cities in the world for millionaires. Shutterstock

According to Capgemini, the UAE is also capitalizing on this trend and is attracting international HNWI investors. 

“Investors are targeting high-growth emerging economies for specific thematic investment options, tax regulation, economic and political stability, better wealth management services, and enhanced market connectivity. As a result of this search for geopolitical security and economic diversification, Asia and the Middle East have become appealing destinations,” said the report.

It added: “Singapore, Hong Kong, the UAE, and recently Saudi Arabia have established themselves as prime alternatives, utilizing advantageous tax policies, strong financial ecosystems, and political stability to draw global wealth.” 

The analysis added that enhanced market connectivity and improved wealth management options are among the other crucial factors that make the Middle East a desirable investment destination among next-gen HNWIs. 

Saudi focus

The report said the Kingdom “has introduced new residency programs aimed at HNWIs, positioning itself as a regional wealth hub.” 

It added: “As global wealth patterns shift, Saudi Arabia is actively enhancing its legal and financial frameworks to compete with traditional wealth hubs.” 

HNWIs from nine Muslim-majority countries are preparing to commit $2 billion toward property purchases in Makkah and Madinah. Shutterstock

In 2019, Saudi Arabia introduced the premium residency visa option, which allows eligible foreigners to reside in the Kingdom and enjoy benefits such as exemption from expat and dependents’ fees, visa-free international travel, and the right to own real estate and operate a business without requiring a sponsor. 

In January 2024, the Kingdom added five new products to its premium residency program. Under the new addition, the most notable one was the ability to own residential real estate assets worth a minimum of SR4 million ($1.07 million) within the Kingdom.

The rise in the number of HNWIs in Saudi Arabia coincides with the extensive Vision 2030 economic reform program launched in 2016. 

Efforts to diversify the Kingdom’s economy have also included a push to attract international companies to establish their regional headquarters in Riyadh, and as of March, over 600 global firms have opened their regional base in Saudi Arabia. 

Affirming the growth of Saudi Arabia, Knight Frank, in April, said that HNWIs from nine Muslim-majority countries are preparing to commit $2 billion toward property purchases in Makkah and Madinah. 

The trend comes as Saudi Arabia overhauls its property sector to position itself as a global tourism and business hub by the end of this decade. 

Capgemini said the UAE is also capitalizing on this trend and is attracting international HNWI investors. Shutterstock

Growth of Middle East region

The report also said the Middle East and Africa registered modest growth in HNWI wealth in 2024, gaining 0.9 percent and 4.7 percent, respectively, compared to the previous year. 

In 2024, the HNWI population in the Middle East witnessed a decline of 2.1 percent, while it grew by 3.4 percent in Africa. 

“In the Middle East, OPEC’s extension of oil production cuts and comparatively low oil prices, well below their peak in 2022, contributed to weak growth,” said Capgemini. 

Global outlook

According to the report, the global HNWI population increased by 2.6 percent year on year in 2024. 

Capgemini said the increase was driven by the growth in the population of ultra-HNWIs — those who hold at least $30 million in assets — which grew by 6.2 percent, as strong stock markets and artificial intelligence optimism boosted portfolio returns.

North America saw the biggest gains, with the HNWI population rising by 7.3 percent. 

Report said Asia and the Middle East have become appealing destinations. File/Reuters

Europe’s HNWI population declined 2.1 percent due to economic stagnation in major countries like the UK and France, while Latin America also witnessed a drop of 8.5 percent, due to currency depreciation and fiscal instability. 

Asia-Pacific’s HNWI population increased 2.7 percent year on year in 2024. 

Within the largest individual markets, the US topped the list, adding 562,000 millionaires as the country’s HNWI population grew by 7.6 percent to 7.9 million.

India and Japan were standouts in the Asia-Pacific region, with both countries registering 5.6 percent growth, adding 20,000 and 210,000 millionaires, respectively, last year. 

The HNWI population in China declined by 1 percent.


Muscat Stock Exchange cap tops $72.8bn after index climbs for 5th week

Updated 08 June 2025
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Muscat Stock Exchange cap tops $72.8bn after index climbs for 5th week

  • Benchmark MSX index rose 17 points to close at 4,578, reflecting improved investor sentiment
  • Trading volume on the Muscat bourse rose to 11 million rials per day, up from 10 million the previous week

RIYADH: The Muscat Stock Exchange extended its rally for a fifth consecutive week, with market capitalization rising to 28 billion Omani rials ($72.8 billion) in the week ending June 7. 

Driven by gains in key services and industrial stocks, the benchmark MSX index rose 17 points to close at 4,578, reflecting improved investor sentiment and increased activity across sectors, the Oman News Agency reported. The bourse recorded a weekly market capitalization gain of 79.3 million rials.

This comes as markets across the Middle East and North Africa rallied in early 2025, with the Arab Monetary Fund’s May report showing its Composite Index rising 4.37 percent year on year, supported by reforms to boost liquidity and attract foreign investment. 

“Last week witnessed a good performance for the stock market, with 34 securities rising, 30 declining, and 17 remaining stable,” the Oman News Agency report stated. 

The bourse recorded a weekly market capitalization gain of 79.3 million rials. Oman News Agency

It added: “Muscat Gases recorded the highest increase, rising 18 percent to close at 118 baisas. Galfar Engineering and Contracting rose to 72 baisas, up 9 percent. National Gas recorded an 8.8 percent increase to close at 86 baisas.” 

National Gas Co. Oman announced it has acquired an 80 percent stake in Samharam Gas Co., which operates in the bottling and distribution of liquefied petroleum gas in Dhofar Governorate. The acquisition is expected to strengthen its presence in Oman’s LPG market and boost group-level revenues and net profits. 

Trading volume on the Muscat bourse rose to 11 million rials per day, up from 10 million the previous week, while average daily transactions climbed to 2,149 from 1,787. The trading week was shortened to four days due to the Eid Al-Adha holiday, with the exchange set to resume operations on June 10. 

The services sector led gains, with its index rising five points on the back of strong performances from Ooredoo, Omantel, and OQ Gas Networks. In contrast, the industrial index fell 17 points, the financial index dropped 10 points, and the Shariah index edged lower by less than one point. 

National Gas Co. Oman announced it has acquired an 80 percent stake in Samharam Gas Co. File/National Gas Co. Oman

Last week, investors concentrated on OQ Base Industries shares, which traded 10.584 million rials — 24 percent of the total 44 million rials traded. The stock saw 1,678 transactions and closed at 122 baisas, up 4 baisas. 

Bank Muscat’s shares recorded 5.48 million rials in trades, accounting for 12.4 percent of the total trading value. OQ Gas Networks ranked third, with trades worth approximately 5.1 million rials. 

Sohar International Bank was fourth, with trading valued at 5.03 million rials. OQ Exploration and Production came fifth, with trades totaling 4.30 million rials, representing 9.7 percent of the total trading value. 


GCC exceeds global average in 2024 Carbon Circular Economy Index 

Updated 08 June 2025
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GCC exceeds global average in 2024 Carbon Circular Economy Index 

  • Region’s performance highlights its growing commitment to sustainable energy and carbon reduction strategies
  • Expansion reflects increased investments in solar, wind, and other clean energy projects

RIYADH: Gulf Cooperation Council countries have outperformed the global average in the 2024 Carbon Circular Economy Index, scoring 41.5 points, latest data showed.

Released by the Gulf Statistical Center, the index serves as an assessment tool to evaluate the progress of 125 nations toward achieving net-zero emissions through a balanced approach that incorporates mitigation technologies and enabling tools. 

It also measures their transition to a carbon-neutral future based on circular economy principles, the Oman News Agency reported. 

The GCC’s performance highlights its growing commitment to sustainable energy and carbon reduction strategies. 

Its push toward a circular carbon economy aligns with broader economic diversification goals, as the region seeks to reduce its reliance on hydrocarbons while tackling environmental challenges. 

Released by the Gulf Statistical Center, the index serves as an assessment tool to evaluate the progress of 125 nations toward achieving net-zero emissions. Oman News Agency

“The contribution of the design capacity of renewable energy plants in the GCC countries to the total design capacity of renewable energy plants worldwide also increased, reaching 0.43 percent in 2024, compared to 0.03 percent in 2015,” the ONA report stated. 

This expansion reflects increased investments in solar, wind, and other clean energy projects across the region. 

With some member states ranking among the world’s highest per capita emitters, the shift to sustainable practices — such as waste recycling, renewable energy development, and carbon capture — aims to balance continued energy leadership with climate commitments. 

According to the Jeddah-based Gulf Research Center, rapid urbanization and resource-intensive consumption patterns have further driven the need for circular solutions, particularly in water and waste management, as the GCC works to mitigate its ecological footprint while fostering green investment and job creation. 

Currently, the GCC operates three commercial carbon capture and storage facilities, with a combined capacity of 3.8 million tonnes of CO2 per year. These facilities play a crucial role in reducing industrial emissions, the ONA report noted. 

Looking ahead, the region is projected to capture and store up to 65 million tonnes of CO2 annually by 2035. CCS technology is a key component of the GCC’s strategy to limit global temperature rise to 2 degrees Celsius and achieve carbon neutrality by 2050. 

GCC’s leadership 

During its G20 presidency in 2020, Saudi Arabia introduced the Circular Carbon Economy Framework, which was endorsed by G20 leaders as a sustainable and cost-effective approach to tackling climate change while ensuring energy security. 

Building on this momentum, the Kingdom launched its CCE National Program in 2021, focusing on emissions reduction through four key strategies: reduce, reuse, recycle, and remove. 

Saudi Arabia has since implemented over 30 CCE initiatives across its energy sector, aligning with Crown Prince Mohammed bin Salman’s 2021 pledge to achieve net-zero emissions by 2060. 

The UAE has also emerged as a regional leader in circular economy policy. Its Circular Economy Agenda 2031 serves as a national blueprint, outlining 22 policies across four key sectors — manufacturing, food, infrastructure, and transportation — to drive advanced recycling, economic growth, job creation, and resource efficiency. 

As host of COP28, the UAE reaffirmed its global sustainability commitment, leveraging its strengths in green finance, clean energy, and climate innovation.