Saudi Arabia Freezes Rents in Riyadh for the Next 5 Years

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LATEST NEWS

In Today’s Edition:

• Saudi Arabia Freezes Rents in Riyadh for the Next 5 Years

• Saudi Stocks Surge to 5-Year High on Reports of Foreign Ownership Rule Changes

• Saudi Arabia to Build Qiddiya High Speed Rail Linking Riyadh’s Key Hubs in 30 Minutes

• Riyadh and Jeddah Are Set to Add 2,380 New Hotel Rooms by Late 2025

• Today’s Newsletter’s Sponsor

REAL ESTATE

✨Saudi Arabia Freezes Rents in Riyadh for the Next 5 Years

Saudi Arabia, acting on directives from Crown Prince Mohammed bin Salman, has enacted a royal decree freezing all rent increases for residential and commercial properties in Riyadh for a period of five years to curb rapidly soaring rental prices in the capital.

Key Takeaways:

• Effective September 25, 2025, landlords in Riyadh are prohibited from raising the total rent value on both existing and new residential and commercial leases for five years.

• All rental contracts are mandated to be registered on the government's official digital platform, Ejar, to ensure transparency and accountability in the landlord-tenant relationship.

• To incentivize compliance, informants who report violations may receive up to 20% of the collected fine.

The five-year rent freeze in Riyadh is a landmark housing reform designed to stabilize the capital's rental market, which has been under pressure from rapid development and population growth. Read more

INVESTMENT

✨Saudi Stocks Surge to 5-Year High on Reports of Foreign Ownership Rule Changes

Saudi Arabia's stock market, the Tadawul, experienced a major surge, hitting a five-year high based on reports that the Kingdom plans to remove the current 49% cap on foreign ownership of its publicly listed companies.

Key Takeaways:

• The Tadawul All Share Index (TASI) jumped by over 5% in a single day, recording its biggest gain in five years.

• Trading volume reached approximately $3.86 billion, nearly a 200% increase on the 90-day average.

• The primary catalyst is the anticipated removal of the 49% maximum cap on shares foreign investors can own in Saudi listed firms.

The substantial surge in the Saudi stock market is directly linked to the reported plan to lift foreign ownership restrictions on listed companies, a move expected to be implemented before the end of 2025. Read more

TRAVEL

✨Saudi Arabia to Build Qiddiya High Speed Rail Linking Riyadh’s Key Hubs in 30 Minutes

Saudi Arabia has initiated the Qiddiya High Speed Rail project, a crucial infrastructure development designed to connect major hubs in Riyadh—specifically the King Salman International Airport, KAFD, and Qiddiya City—in under 30 minutes.

Key Takeaways:

• The high-speed rail will link King Salman International Airport (KSIA), the King Abdullah Financial District (KAFD), and Qiddiya City.

• The rail line is engineered to transport passengers between these key destinations in less than 30 minutes, with trains capable of reaching speeds of up to 250 km/h.

• The new high-speed rail is planned to seamlessly integrate with Riyadh's existing public transport network, enhancing overall urban mobility.

The Qiddiya High Speed Rail is a transformative infrastructure project set to revolutionize urban transport in Riyadh by providing ultra-fast connectivity between the city's key economic and entertainment centers. Read more

HOSPITALITY

✨Riyadh and Jeddah Are Set to Add 2,380 New Hotel Rooms by Late 2025

The hospitality sectors in Riyadh and Jeddah are set for rapid expansion, collectively scheduled to add 2,380 new hotel rooms by late 2025, driven by strong demand and the ambitious goals of Saudi Vision 2030.

Key Takeaways:

• The cities are adding a substantial number of rooms, with Riyadh already having added 690 new rooms in the first half of the year, bringing its total to approximately 49,100 keys.

• The holy cities of Makkah and Madinah are also experiencing a major supply push, expected to add a combined 6,300 new keys in the latter half of the year.

• The growth is fueled by government initiatives under Saudi Vision 2030 to diversify the economy, increase the contribution of tourism to the national GDP, and attract 150 million annual visitors by 2030.

The substantial addition of 2,380 hotel rooms in Riyadh and Jeddah by late 2025 underscores the Kingdom's commitment to developing its tourism infrastructure. Read more

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