Recent Developments in Saudi Arabia: A Week of Growth and Innovation

Saudi Arabia has been making headlines recently with significant developments across various sectors, from real estate to tourism and sports. Here’s a closer look at some of the most noteworthy stories from the Kingdom this week.

Rent Freeze in Riyadh: A Five-Year Initiative

In a move aimed at stabilizing the housing market, Saudi Arabia has enacted a five-year freeze on rent increases for both residential and commercial properties in Riyadh. This royal decree, effective from September 25, 2025, was approved by the Council of Ministers following directives from Crown Prince Mohammed bin Salman. The regulations prohibit any rental value increases within the urban boundaries of Riyadh, impacting both existing and new contracts. The Real Estate General Authority has the authority to extend these measures to other cities, pending approval from the Council of Economic and Development Affairs.

Surge in Property Sales: Riyadh and Jeddah Lead the Way

The real estate market in Riyadh has experienced a remarkable surge, with residential property sales increasing by 63% year-on-year, reaching approximately SR65.7 billion ($17.5 billion) in the first half of 2025. This growth is reflected in the 35,600 transactions recorded, marking a 10% increase compared to the same period last year. Similarly, Jeddah has seen a 34% rise in sales values, totaling SR18.3 billion ($4.9 billion) with a 25% increase in transaction volumes.

Stock Market Boom: Tadawul Hits Five-Year High

In a significant development for investors, Saudi Arabia’s stock market, the Tadawul, has witnessed its largest surge in five years, with the All-Share Index climbing over 5%. This increase follows reports that the Kingdom is considering lifting foreign ownership limits on listed companies, potentially allowing foreign investors to hold majority stakes. The market reacted positively, with trading volumes reaching nearly $3.86 billion, a dramatic rise compared to the 90-day average.

NEOM’s Magna: A New Era for Tourism

Saudi Arabia’s tourism sector is undergoing a transformation, particularly with the introduction of NEOM’s Magna project. This ambitious 120-kilometer development along the Gulf of Aqaba will feature 12 luxury resorts and a focus on sustainable tourism. The project aims to blend cutting-edge technology with natural landscapes, offering unique accommodations such as mountain hotels and eco-resorts. This initiative is part of a broader strategy to attract global visitors and investors to the Kingdom.

Airport Rankings: Riyadh Takes the Lead

The General Authority of Civil Aviation (GACA) has released its monthly performance report, highlighting the rankings of Saudi Arabia’s airports. King Khalid International Airport in Riyadh topped the list for international airports handling over 15 million passengers annually, achieving a compliance rate of 82%. This ranking underscores the Kingdom’s commitment to enhancing service quality and passenger experience across its aviation sector.

High-Speed Rail Project: Connecting Key Hubs

Saudi Arabia is set to enhance its transportation infrastructure with the development of a high-speed rail line linking King Salman International Airport, the King Abdullah Financial District (KAFD), and Qiddiya City. This project, which is currently in the Expression of Interest stage, aims to connect these key locations within 30 minutes, significantly improving accessibility and travel efficiency in the region.

Startups and SMEs: A Flourishing Ecosystem

The entrepreneurial landscape in Saudi Arabia is thriving, with over 80,000 new small and medium enterprises (SMEs) registered in the second quarter of 2025. This brings the total number of active SME records in the Kingdom to approximately 1.7 million. Notably, e-commerce has seen substantial growth, with youth and women playing pivotal roles in this entrepreneurial surge.

VAT Compliance: A Call to Action for Businesses

In a recent announcement, the Zakat, Tax and Customs Authority (ZATCA) urged VAT-registered businesses with annual supplies exceeding SR40 million ($10.7 million) to submit their tax returns by September 30. The authority emphasized the importance of timely filing to avoid penalties, which can range from 5% to 25% of the VAT due.

Roshn Saudi League: Expanding Global Reach

The Roshn Saudi League has secured landmark media agreements to broadcast matches in over 180 territories for the 2025-26 season. This includes partnerships with major broadcasters like ESPN and DAZN, reflecting the growing international interest in Saudi football and enhancing the league’s visibility on a global scale.

Future Investment Initiative (FII9): A Gathering of Global Leaders

Scheduled for October 27-30, 2025, the Future Investment Initiative (FII9) in Riyadh will bring together over 15 world leaders and more than 600 speakers to discuss pressing global issues. Under the theme “The Key to Prosperity: Unlocking New Frontiers of Growth,” the conference aims to address the complexities of innovation, connectivity, and economic development.

These developments illustrate Saudi Arabia’s dynamic growth across various sectors, positioning the Kingdom as a key player on the global stage.