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Saudi Crown Prince issues directives to curb rising land prices and rents in Riyadh

In response to the rising land prices and rental costs in Riyadh, Crown Prince Mohammed bin Salman on Saturday directed a series of measures aimed at achieving stability in the real estate sector. (SPA)
In response to the rising land prices and rental costs in Riyadh, Crown Prince Mohammed bin Salman on Saturday directed a series of measures aimed at achieving stability in the real estate sector. (SPA)
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Updated 29 March 2025

Saudi Crown Prince issues directives to curb rising land prices and rents in Riyadh

Saudi Crown Prince issues directives to curb rising land prices and rents in Riyadh
  • Decision followed study carried out by Royal Commission for Riyadh City and Council of Economic and Development Affairs

RIYADH: In response to the rising land prices and rental costs in Riyadh, Crown Prince Mohammed bin Salman on Saturday directed a series of measures aimed at achieving stability in the real estate sector, the Saudi Press Agency reported.

The decision followed a study carried out by the Royal Commission for Riyadh City and the Council of Economic and Development Affairs, which assessed the challenges facing the market in the Saudi capital.

A key aspect of the directive will be the lifting of restrictions on land transactions and development in northern Riyadh.

The move will allow for the sale, purchase, division, and subdivision of land in designated areas, as well as the issuance of building permits, SPA reported.

The areas affected include a 17-square-kilometer section north of Riyadh, bordered by King Khalid Road to the west and Prince Saud bin Abdullah bin Jalawi Road to the south, as well as a 16.2-square-kilometer area north of King Salman Road, extending to Abu Bakr Al-Siddiq Road and Al-Qayrawan District.

These additions, combined with previously lifted suspensions covering 48.28 square kilometers, bring the total area now available for development in Riyadh to 81.48 square kilometers.

To increase housing accessibility, the RCRC has been tasked with providing planned and developed residential lands for citizens.

Between 10,000 and 40,000 plots will be made available annually over the next five years, at a capped price of 1,500 riyals per square meter. These plots will be offered to married citizens or individuals over the age of 25, provided they do not own any existing real estate.

Strict regulations will govern the issuance of this land, preventing resale, rental, or mortgage for 10 years, except when used to finance construction. If the land remains undeveloped within this period, ownership will revert to the government, with the buyer reimbursed.

To further stimulate real estate supply, amendments to the white land fees system — a policy designed to encourage the development of vacant land — will be introduced within 60 days.

Additionally, regulatory measures will be implemented within 90 days to ensure a fair balance between landlords and tenants.

Finally, the General Authority for Real Estate and RCRC have been assigned the task of monitoring and controlling property prices in Riyadh.

They will submit periodic reports to assess the effectiveness of these measures and ensure that the real estate market remains stable and accessible.


º£½ÇÖ±²¥ pitches mining opportunities to French firms

º£½ÇÖ±²¥ pitches mining opportunities to French firms
Updated 42 sec ago

º£½ÇÖ±²¥ pitches mining opportunities to French firms

º£½ÇÖ±²¥ pitches mining opportunities to French firms

JEDDAH: French companies were pitched investment opportunites in º£½ÇÖ±²¥â€™s mining sector as the Kingdom prepares to launch a competitive tender on Sept. 28 for 162 new mining exploration sites. 

Some 15 firms took part in a virtual seminar, where they heard about projects located in the Al-Naqrah and Sukhaybarah Al-Safra belts in the Madinah region, according to a press release from the Ministry of Industry and Mineral Resources. 

The plan is part of a broader effort to open more than 50,000 sq. km of mineralized belts to investors by 2025. 

The initiative reflects º£½ÇÖ±²¥â€™s drive to accelerate mineral exploration and attract diverse investment, leveraging the Kingdom’s mineral wealth — estimated at SR9.4 trillion ($2.5 trillion) — to boost non‑oil revenue alongside the oil and petrochemical sectors. It also aligns with Vision 2030 goals to develop the mining sector, maximize economic benefits, and establish mining as a third pillar of industry. 

In the press release, the ministry stated: “The seminar highlighted the advanced infrastructure supporting mining projects, including transportation, communications, and logistics networks. This reduces the timeframe for implementing and operating mining projects and enhances the competitiveness and attractiveness of the mining investment environment in the Kingdom. 

The seminar also served as preparation for the Saudi-French Mining Day on Oct. 8 in Riyadh, organized in partnership with the French Embassy, as the Kingdom seeks to establish mining as a third industrial pillar under Vision 2030. 

It will underscore both nations’ commitment to advancing collaboration in critical minerals, technology transfer, and sustainable mining practices. 

The meeting follows Minister of Industry and Mineral Resources Bandar Alkhorayef’s visit to France in early May, where he held discussions with senior officials from several French companies, including the CEO of Orano Mining. 

The Paris visit focused on securing a stable supply of critical minerals, such as lithium and cobalt, essential to º£½ÇÖ±²¥â€™s green energy initiatives and the growing electric vehicle sector. 

Alkhorayef also met with France’s Interministerial Delegate for Strategic Minerals and Metals Supplies, Benjamin Gallezot, to explore ways to strengthen global supply chain resilience and promote sustainability in the mining sector. 


Saudi banks driving GCC surge in US dollar debt issuance to fuel Vision 2030 growth: Fitch

Saudi banks driving GCC surge in US dollar debt issuance to fuel Vision 2030 growth: Fitch
Updated 25 September 2025

Saudi banks driving GCC surge in US dollar debt issuance to fuel Vision 2030 growth: Fitch

Saudi banks driving GCC surge in US dollar debt issuance to fuel Vision 2030 growth: Fitch

RIYADH: º£½ÇÖ±²¥â€™s banking sector is leading a shift in Gulf financing, driving a surge in US dollar-denominated subordinated debt to fund rapid credit growth and ambitious national projects, a new analysis showed. 

Fitch Ratings said Saudi banks are at the forefront of this regional trend, which is expected to continue into 2026 amid rising capital needs and tighter regulatory requirements. 

As the Saudi government pushes ahead with multi-trillion-dollar Vision 2030 initiatives, banks are turning to global US dollar markets to raise crucial capital, boosting issuance of complex, high-yield subordinated bonds. 

So far in 2025, Gulf Cooperation Council banks have issued over $55 billion in US dollar debt, already surpassing 2024’s total of $36 billion. “Over half ($29.3 billion) is from Saudi banks, including $11.7 billion in additional Tier 1 (AT1) and Tier 2 capital,†the agency said. 

Subordinated debt now accounts for over 70 percent of Saudi banks’ dollar issuance, up from about 50 percent in 2024, reflecting a move toward riskier instruments that strengthen banks’ capital bases. 

Fitch cited several drivers behind the surge. Saudi banks are experiencing the strongest credit growth in the GCC, projected at 12 percent in 2025. This lending boom, which finances large-scale Vision 2030 projects, is outpacing deposit growth and gradually eroding capital buffers. 

“Strong financing growth is outpacing deposit growth and has eroded capital buffers in recent years. The sector common equity Tier 1 (CET1) ratio decreased by 213bp over 2020-2024,†the report noted. 

Upcoming regulatory changes — including a 1 percent countercyclical buffer from May 2026 and tighter interest-rate risk rules — are expected to add further pressure on capital ratios.

Additionally, financing major Vision 2030 projects carries higher risk weightings under Basel III rules, further straining core capital. 

While AT1 instruments continue to dominate non-core capital markets, Saudi banks are also diversifying. They have issued nearly $6 billion in Tier 2 debt in 2025, helping balance their capital structure and attract a broader base of international investors. 

Fitch expects issuance momentum to continue into 2026, supported by over $10 billion of maturing debt that needs refinancing, ongoing financing demand, and anticipated lower interest rates.

About $1.8 billion of AT1 instruments reaching their first call date next year are also expected to be redeemed under favorable market conditions. 

Fitch Ratings had predicted that GCC banks are set to exceed $60 billion of US dollar debt issuance in 2025, and $40 billion excluding certificates of deposit, surpassing the record levels of 2024. 

In a report released earlier this month, the agency said the surge is driven by heightened maturities, strong credit growth and favorable financing conditions. 


Kuwait’s economy set to grow 2.6% in 2025: IMF

Kuwait’s economy set to grow 2.6% in 2025: IMF
Updated 25 September 2025

Kuwait’s economy set to grow 2.6% in 2025: IMF

Kuwait’s economy set to grow 2.6% in 2025: IMF

RIYADH: Kuwait’s economy is on a steady recovery in 2025, driven by rising oil output and resilient non-oil growth after contracting 2.6 percent last year, the International Monetary Fund has said. 

Following its staff visit to the country, the IMF said higher oil production, after the recent unwinding of OPEC+ cuts, is expected to lift the oil sector by 2.4 percent, while non-oil growth is projected at 2.7 percent.

The forecast aligns closely with the World Bank’s April projection of 2.2 percent growth this year, with expansion accelerating to 2.7 percent in 2026 and 2027. 

IMF Mission Chief for Kuwait Francisco Parodi said: “The economy is recovering amid higher oil production and robust non-oil growth. An incipient recovery is underway, with real GDP expanding by 1 percent in the first quarter of 2025.†

He added: “For 2025, real GDP is projected to expand by 2.6 percent.†

In July, the National Bank of Kuwait reported that the economy returned to positive territory in the first quarter of 2025, recording a 1 percent year-on-year increase, following seven consecutive quarters of contraction. 

The bank noted that the non-oil economy continued to expand, supported by momentum in manufacturing, real estate, and transportation, while the impact of previous oil production cuts has begun to fade. 

Kuwait also increased its oil production in April by 135,000 barrels per day, which is expected to bolster overall economic activity. 

The IMF report added that inflation continues to moderate, though lower oil prices are weighing on fiscal and external balances. Headline consumer price index inflation is projected to ease to 2.2 percent in 2025, down from 2.9 percent in 2024. 

“The fiscal deficit of the budgetary central government is projected to rise to 7.8 percent of GDP in FY2025/26, up from 2.2 percent of GDP in FY2024/25, primarily reflecting lower oil revenue,†said Parodi. 

He added: “In parallel, the current account surplus is projected to moderate to 26.5 percent of GDP in 2025, down from 29.1 percent of GDP in 2024, mainly due to lower oil exports.†

Affirming the growth of the non-oil sector, the report noted that credit to the non-financial private sector is projected to rise to 6.1 percent in 2025, up from 5.2 percent in 2024. 

The IMF also said that Kuwaiti banks have maintained strong capital and liquidity buffers, while non-performing loans remain low. 

“The risks to the economic outlook are broadly balanced. The economy is heavily exposed in the short run to upside and downside risks from shifts in oil prices and OPEC+ production quotas, which could arise from fluctuations in global growth, geopolitical tensions or non-OPEC+ supply,†said Parodi. 

He also lauded recent government initiatives, including the Public Debt Law enacted in March, which could further support the country’s economic recovery. 

The law, approved by Kuwait’s Ministry of Finance, aims to address fiscal pressures and finance infrastructure projects, marking the country’s return to international debt markets after an eight-year hiatus. 

At the time, the ministry said the law allows the government to issue up to 30 billion Kuwaiti dinars ($98 billion) in debt instruments, in either local or major foreign currencies, with maturities of up to 50 years. 

“A new Public Debt Law was enacted in March 2025, enabling the government to issue debt for the first time in almost a decade. Accelerating reform implementation is needed to promote economic diversification, enhance competitiveness, and boost non-oil growth,†said Parodi.


Saudi POS transactions hit $3.3bn on surge in home supplies spending  

Saudi POS transactions hit $3.3bn on surge in home supplies spending  
Updated 25 September 2025

Saudi POS transactions hit $3.3bn on surge in home supplies spending  

Saudi POS transactions hit $3.3bn on surge in home supplies spending  

RIYADH: Spending on furniture and home supplies in º£½ÇÖ±²¥ saw a 22.5 percent surge during the week ending Sept. 20, keeping total point-of-sale transactions above the $3 billion mark. 

Transactions in the category reached SR609.46 million ($162 million), helping overall POS payments hit SR12.40 billion despite a 5.4 percent weekly decline, the Saudi Central Bank, also known as SAMA, said in its latest bulletin. 

The surge reflects rising demand in the housing market, which saw nearly 93,700 deals in the first half of 2025 â€” a 7 percent increase from a year earlier, according to Knight Frank.

The broader real estate sector also maintained steady growth in the second quarter, with residential property prices edging up 0.4 percent, data from the General Authority for Statistics showed. 

SAMA’s weekly bulletin showed spending on electronics and electrical devices came second overall, rising 6.8 percent to SR201.34 million. Jewelry sales climbed 10.8 percent to SR352.10 million, though the number of transactions dropped 3.5 percent to 271,000. 

The fourth positive change was seen in expenditure on construction materials. The category saw a 4.3 percent increase in spending to SR410.41 million, although this was alongsude a 5.5 percent decrease in terms of volume to 2.12 million. 

The education sector saw the largest decrease, dropping by 39.5 percent to SR172.63 million. Laundry services followed, dropping by 12.1 percent to SR43.49 million. 

In third place, the subcategory of books and stationery saw a 10.7 percent decrease to reach SR122.38million. 

Food and beverages — the sector with the biggest share of total POS value — recorded a 7.9 percent decrease to SR1.81 billion, while the restaurants and cafes sector saw a 7.8 percent decrease, totaling SR1.44 billion and claiming the second-biggest share of this week’s POS. 

Spending in gas stations claimed the third biggest share at SR955.70 million despite a 6.6 percent decline in transaction numbers. 

The top three categories accounted for approximately 33.98 percent of the week’s total POS payments, amounting to SR4.21 billion. 

Transportation and health saw a 3.6 percent and a 5.3 percent drop in expenses to SR931.91 million and SR829.53 million, respectively. A small decrease was seen in spending on public utilities and services at 1.3 percent to SR47.66 million. 

Geographically, Riyadh dominated POS transactions, with expenses in the capital reaching SR4.49 billion, a 3.5 percent decrease from the previous week.  

Jeddah followed closely despite a 4.3 percent dip to SR1.77 billion, while Dammam ranked third, down 4.2 percent to SR635.82 million. 


º£½ÇÖ±²¥â€™s non-oil exports rise 30.4% to $9bn: GASTAT

º£½ÇÖ±²¥â€™s non-oil exports rise 30.4% to $9bn: GASTAT
Updated 25 September 2025

º£½ÇÖ±²¥â€™s non-oil exports rise 30.4% to $9bn: GASTAT

º£½ÇÖ±²¥â€™s non-oil exports rise 30.4% to $9bn: GASTAT

RIYADH: º£½ÇÖ±²¥â€™s non-oil exports, including re-exports, reached SR33.71 billion ($8.99 billion) in July, marking a 30.4 percent increase compared to the same month last year, official data showed. 

According to preliminary figures released by the General Authority for Statistics, the UAE was the top destination for Saudi non-oil products, with shipments totaling SR10 billion. 

India ranked second, receiving goods worth SR3.48 billion, followed by China at SR1.99 billion, Turkiye at SR1.95 billion, the UK at SR1.25 billion, and Egypt at SR992.4 million. 

The robust growth highlights progress under º£½ÇÖ±²¥â€™s Vision 2030 program, which seeks to diversify the economy and reduce reliance on oil revenues. 

“Non-oil exports, including re-exports, recorded an increase of 30.4 percent compared to July 2024, while national non-oil exports, excluding re-exports, grew by 0.6 percent. Moreover, the value of re-exported goods increased by 111.3 percent during the same period,†said GASTAT. 

Other key destinations in July included Belgium at SR929.1 million, Qatar at SR778.6 million, and Switzerland at SR776.1 million. Exports to Kuwait stood at SR711.6 million, while Jordan and Bahrain received SR678.2 million and SR656 million, respectively. 

Machinery, electrical equipment, and parts led the export basket, accounting for 29.7 percent of non-oil shipments and registering a sharp 191.1 percent year-on-year increase.

Chemical products followed with a 19.6 percent share, edging up 0.9 percent from July 2024. 

In May, GASTAT noted that º£½ÇÖ±²¥â€™s gross domestic product grew 2.7 percent year on year in the first quarter, driven by robust non-oil activity. 

Economy and Planning Minister Faisal Al-Ibrahim, who also chairs GASTAT’s board, said non-oil activities contributed 53.2 percent to GDP — a 5.7 percent rise over previous estimates. 

He added that the Kingdom’s economic outlook remains strong, supported by structural reforms and large-scale state-led projects. 

Further reflecting this momentum, S&P Global reported that º£½ÇÖ±²¥â€™s Purchasing Managers’ Index rose to 56.4 in August from 56.3 in July, staying well above the 50-mark that separates growth from contraction. The Kingdom outpaced regional peers, with the UAE and Kuwait posting PMIs of 53.3 and 53, respectively. 
 
Export gateways 

According to GASTAT, ports played a key role in the July surge.

Jeddah Islamic Sea Port handled the largest volume of non-oil exports at SR3.63 billion, followed by King Fahad Industrial Sea Port at SR3.37 billion and King Abdulaziz Sea Port in Dammam at SR2.44 billion.

Jubail and Ras Al Khair sea ports processed SR2.10 billion and SR1.97 billion, respectively. 

On land, Al-Batha Port processed SR2.18 billion in non-oil exports, while Al-Hadithah and Al-Wadiah ports recorded SR915.4 million and SR553.8 million, respectively. 

Among airports, King Abdulaziz International Airport processed non-oil outbound goods valued at SR6.63 billion, followed by King Khalid International Airport at SR4.78 billion, and King Fahad International Airport at SR404.4 million. 

Overall merchandise exports 

º£½ÇÖ±²¥â€™s overall merchandise exports stood at SR102.38 billion in July, representing a rise of 7.8 percent compared to the same month in 2024. 

Oil exports decreased by 0.7 percent year on year in July. “Consequently, the percentage of oil exports out of total exports decreased from 72.8 percent in July 2024 to 67.1 percent in July 2025,†said the report. 

Asia remained the largest market for Saudi exports in July, accounting for SR72.44 billion. 

Europe followed at SR16.54 billion, with Africa and the Americas receiving Saudi exports valued at SR7.50 billion and SR5.72 billion, respectively. 

China was the top destination for º£½ÇÖ±²¥â€™s merchandise exports in July, as the Asian nation received shipments valued at SR14.33 billion. 

The UAE received goods worth SR10.85 billion, followed by India at SR9.66 billion, South Korea at SR8.72 billion and Japan at SR7.14 billion. 

In July, exports to the US stood at SR4.22 billion, while Egypt and Malta received inbound shipments valued at SR3.68 billion and SR3.43 billion, respectively. 

Imports in July 

º£½ÇÖ±²¥â€™s imports decreased by 2.5 percent year on year in July to reach SR75.52 billion, while the merchandise trade balance surplus rose by 53.4 percent over the same period. 

Machinery, mechanical and electrical equipment led imports, totaling SR22.59 billion in July, followed by transport parts at SR9.97 billion and base metals at SR7.11 billion. 

In July, the Kingdom imported chemical products valued at SR6.91 billion, while mineral goods accounted for SR4.04 billion. 

By region, Asia remained the Kingdom’s largest trade partner, contributing SR41.96 billion in imports. 

Imports from Europe and the Americas amounted to SR20.24 billion and SR9.13 billion, respectively. Africa supplied SR3.52 billion worth of goods, while imports from Oceania totaled SR648.5 million. 

China led all countries as the top source of imports, with SR19.47 billion worth of inbound shipments in July, followed by the US at SR6.04 billion, and the UAE at SR4.82 billion. 

In July, º£½ÇÖ±²¥ received goods worth SR3.39 billion from Germany, while imports from India stood at SR3.37 billion. 

Sea routes were the dominant entry channel for imports, accounting for SR42.87 billion, while air and land routes handled inbound goods worth SR24.13 billion, and SR8.52 billion, respectively. 

King Abdulaziz Sea Port in Dammam was the leading sea entry point with SR19.67 billion in imports. 

Jeddah Islamic Sea Port handled inbound shipments valued at SR15.75 billion, followed by Ras Tanura Sea Port at SR1.50 billion and King Abdullah Sea Port at SR934.8 million. 

Among land entry points, Al-Batha Port processed SR3.59 billion worth of goods, while Riyadh Dry Port and King Fahad Bridge processed SR2.26 billion and SR800.1 million, respectively. 

By air, King Khalid International Airport received SR10.86 billion in imports in July. 

King Abdulaziz International Airport and King Fahad International Airport handled SR8.44 billion and SR4.31 billion, respectively.