����ֱ��

RIYADH: Riyadh’s industrial and logistics sector recorded an annual rental growth of 9.3 percent in the second quarter of 2025, reinforcing the Saudi capital’s role as a regional industrial hub, according to a JLL report.  

The analysis by the real estate advisory firm showed that annual rental growth rates in Riyadh ranged from 4.7 percent to 25 percent across warehouses in all industrial submarkets, reflecting broad-based demand fundamentals as the city benefits from ongoing economic diversification initiatives. 

Strengthening the industrial sector is one of the key pillars of ����ֱ��’s Vision 2030 agenda, with the Kingdom steadily reducing its reliance on crude oil revenues. 

The growth in rental rates across the industrial and logistics segment also underscores the expansion of ����ֱ��’s real estate market, as the Kingdom strengthens its position as a business hub in the region.  

The Kingdom’s Real Estate General Authority forecasts the property market will reach $101.62 billion by 2029, with a compound annual growth rate of 8 percent from 2024. 

Taimur Khan, head of research at JLL Middle East and Africa, said: “The overall healthy rental growth across ����ֱ��’s industrial markets reflects the impact of ongoing industrial development and logistics infrastructure improvements, driven by Vision 2030’s ambitious agenda.”   

He added: “Well-positioned submarkets, located along major transportation corridors, are primed for stronger performance in the months ahead. As industrial occupiers continue to focus on modern facilities and strategic locations, this will further shape the market’s trajectory and drive demand, supporting the Kingdom’s economic transformation goals.”  

Industrial Gate City in Riyadh retained its premium position with rental rates amounting to SR300 ($79.97) per sq. meter per annum, followed closely by Tharawat Logistics at SR285 per sq. meter per annum.  

Taybah emerged as the city’s standout performer with a 25 percent annual rental increase, while Al Fawzan Industrial City recorded a 17.8 percent rise. 

In Jeddah, the industrial markets posted a healthy 4.5 percent rental growth in the second quarter. Jeddah Islamic Port maintained its status as ����ֱ��’s most premium industrial location, commanding SR450 per sq. meter per annum with a 7.1 percent annual increase. 

“Rental levels in this (Jeddah Islamic Port) top-tier location significantly outpaced both Riyadh and Dammam, reinforcing its strategic value for trade-dependent operations. Despite rental increases in the majority of Jeddah’s submarkets, growth rates were more moderate than in the Saudi capital,” JLL said.  

The Dammam Metropolitan Area saw headline rents increase by 10.8 percent in the second quarter, although submarkets experienced a fragmented performance.  

Al Khalidiyah Shamaliyah posted the highest rates at SR235 per sq. meter per annum with 9.3 percent growth. Indus-Comm was an exceptional outlier, delivering the strongest rental growth at 32.4 percent. 

King Abdulaziz Road demonstrated strong momentum with 20 percent annual growth despite offering the most affordable rates at SR180 per sq. meter per annum. 

Al Taawun was the only submarket across all three major cities to record a rental decline, with a 6.3 percent annual drop.

RIYADH: As global business shifts toward emerging markets, the Middle East and North Africa is seeing steady growth in corporate travel, strengthening its position as a rising business travel hub.

The sector is expanding faster than the global average — reaching $18.1 billion in 2024 and projected to grow 6.1 percent year on year in 2025, according to a report by UAE-based travel platform Tumodo. Investors, airlines, and hospitality giants are already taking note of the region’s transformative potential.

MENA’s business travel bookings surged 40 percent in early 2025 compared with late 2024, with April and May marking the busiest months post-Ramadan. 

The broader market is expected to hit $270.8 billion by 2030, fueled by infrastructure development, digital innovation, and deepening economic ties with Europe and Asia.

“The impressive 50 percent year-on-year growth we’ve seen this year signals a shift from recovery to reinvention,” said Stan Klyuy, chief commercial officer of Tumodo, in the report, noting that average airfares are down by 12 percent and hotel bookings up by 2 percent.

Rita Raad, senior principal of strategy and transformation of the public sector at FTI Consulting, explained in an interview with Arab News: “The 40 percent surge in business travel bookings to MENA in the first half of 2025 reflects a powerful mix of regional momentum and shifting global priorities.”

She added: “Much of this growth is driven by the GCC (Gulf Cooperation Council), where the economy is projected to grow 4.2 percent in 2025-26 compared to about 1.5 percent in Europe, fueled by 3.7 percent non-oil sector expansion and diversification efforts.”

Oil and gas, technology, and finance remain the biggest corporate travel drivers, according to Raad, while ����ֱ��’s giga-projects continue to draw waves of consultants, engineers, and operators. 

Hassan Malik, tourism and sport consulting leader and partner at Deloitte Middle East, told Arab News that the region is indeed “witnessing a remarkable rebound and reinvention in corporate travel.”

A key catalyst of business travel growth, according to Malik, is “the influx of mega-projects and infrastructure in ����ֱ��, like Qiddiya, Neom, and the Red Sea project, drawing global business and investment interest.”

Meshal Al-Faras, head of Middle East, Africa and Central Asia at Janus Henderson, told Arab News: “We are seeing a sustained shift in how international companies and investors view this region, and ����ֱ�� is a clear driver of that momentum.”

He added: “The objectives of Vision 2030 are being implemented at scale across infrastructure, logistics, finance and tourism. That level of clarity and execution attracts interest from global organizations that want to grow in a stable and high-potential market.”

Travel trends 

According to Tumodo’s report, ����ֱ�� led as the top destination for users of the platform, accounting for 20 percent of all travel, followed by the UK at 15 percent, and France and India each at 10 percent.

Regional airlines Emirates, Turkish Airlines, and Qatar Airways dominated preferences, while India emerged as the most affordable route and the UK as the premium choice. 

Regarding the trend for bleisure — trips that blend business with leisure — Raad noted: “The concept of bleisure continues to shape corporate mobility in MENA, with 25 percent of business travelers now extending their stays for leisure, especially among younger generations prioritizing work-life balance.”

She mentioned that airlines such as Qatar Airways, Etihad, Emirates, and Saudia were responding by enhancing their in-flight and ground services to cater to bleisure travelers. 

These upgrades included features such as fully lie-flat seats, priority lounge access, and flexible entertainment and dining options, enabling passengers to work comfortably and relax during flights and transit.

Malik said that bleisure has now become mainstream, with many travelers extending work trips for personal time or combining them with relaxation. He noted that business travelers are increasingly staying longer to explore local destinations.

“Airlines are responding by introducing premium economy offerings, enhanced Wi-Fi, and flexible stopover packages, and Emirates and Etihad also now routinely promote wellness and sightseeing add-ons,” added Malik. 

Al-Faras commented that the idea of business travel being limited to boardrooms no longer reflects how people operate, adding that executives want both flexibility and quality when they travel.

He added: “In ����ֱ�� and across the GCC, we are seeing that expectation being met with strong investment in premium hospitality, high service standards, and facilities that allow people to work and relax in the same setting.”

Sustainability and tech

On sustainability efforts, Raad explained that MENA’s business travel sector is increasingly balancing growth with sustainability by embedding CO2 tracking and AI-driven cost optimization into corporate travel operations.

“Platforms like Tumodo now let companies forecast spending, measure emissions, and enforce eco-friendly routing — optimizing for shorter flights, sustainable hotels, and consolidated itineraries — and delivering emissions reductions of up to 20 percent,” she added.

Malik added that sustainability is becoming central to corporate travel strategy in MENA, noting that national targets in the UAE, ����ֱ��, and Qatar all aim for net-zero emissions in the coming decades through Vision 2030 and national energy strategies. He emphasized that “sustainability is increasingly core to corporate travel strategy in MENA.”

Malik noted that businesses are aligning procurement, travel, and logistics with green standards, prioritizing local suppliers and offset schemes via platforms like MENA’s Global Carbon Council, the region’s first voluntary carbon offsetting program.

Investor takeaways 

Looking at investment opportunities, Al-Faras stated: “I believe the $270 billion projection is realistic as this growth is supported by what we are seeing across the GCC.”

He added that there is strong demand for physical infrastructure — ranging from airports and rail to hotels and event spaces — as well as for digital platforms that support business travel and mobility. Al-Faras noted that ����ֱ�� has developed a pipeline of projects in these areas and has shown “a clear willingness to partner with private capital.”

Raad cautioned that investors needed to carefully assess risks, as the massive scale of ongoing mega-developments could disrupt market balance if demand growth slowed. 

She also highlighted potential regulatory shifts in visas, ownership, and taxation that might impact investment returns, along with increasing environmental, social, and governance pressures. 

Companies are increasingly demanding low-carbon travel, which would require the timely adoption of Sustainable Aviation Fuel and green-certified infrastructure.

Malik concluded: “Risks are very real, too. The biggest challenge will be timing and coordination. If infrastructure growth — number of flights, hotel rooms, venue capacity — doesn’t align across the board, there’s a risk of overcapacity in one area and bottlenecks in another.”

He added: “Regulatory complexity across countries and cities may slow seamless integration. Delivering not just on time, but to international quality standards, will be crucial to sustaining momentum.” 

As MENA’s business travel sector surges, the region’s blend of innovation, sustainability, and economic diversification cements its status as a global leader — with no signs of slowing down.