S&P upgraded Saudi Arabia’s sovereign credit rating to A+ from A, citing governance improvements, Vision 2030-driven non-oil sector growth among key drivers, and the importance of calibrated fiscal expansion. This suggests that non-oil activities will remain the primary driver of growth this year, supported by government investment and private sector expansion.

Saudi Arabia’s robust non-oil sector growth

Saudi Arabia’s non-oil sector has shown strong performance, with 2024 non-oil economic activity projected to be 17% higher than in 2019. Non-oil economic output (including government activities) in 2023 accounted for 63% of the Kingdom’s gross domestic output. Since 2000, the economy has diversified hugely. While the annual production of oil in 2023 was 20% greater than in the year 2000, non-oil output has increased by 220%, on year 2000 output. According to IMF forecasts,this trend is set to be maintained for the rest of the decade.  

The National Investment Strategy projects FDI in flows to reach SAR 388 billion by 2030, reflecting a 22% compound annual growth rate (CAGR) of SAR 95.9 billion from the 2023 figure.Favourable regulatory reforms aimed at attracting global investors are expected to drive demand across the residential, retail, commercial, and hospitality sectors.

Source : https://www.deloitte.com/middle-east/en/Industries/real-estate/perspectives/ksa-real-estate-predictions-2025.html

Transaction volume and value across Riyadh, Jeddah and DMA increased by approximately 50% between 2023 and 2024. Review of 2024 performance Residential supply in the key markets of Riyadh, Jeddah and the Dammam Metropolitan Area (DMA) continued to increase in 2024, This reflects the increasing market maturity and the planned phasing approach adopted by developers. The total number of residential transactions across Riyadh, Jeddahand DMA reached 102,522 in 2024, with a total value of SAR 118 billion (USD 32 billion). This represents an increase of approximately 50% compared to 2023.

Riyadh’s emergence as the new economic power house

Riyadh’s emergence as the new economic power house in the Kingdom of Saudi Arabia has underpinned a job creation surge, with almost half of all new jobs created in the last 5 years being in the Saudi capital. The rising demand for housing in the capital has sustained growth. In home values, with apartment prices climbing 10.6% during 2024, while villa prices grew by 6.3% over the same period Riyadh, Kingdom of Saudi Arabia.

The report highlights the impact of the positive economic conditions in the Kingdom so far on the performance of the real estate market, as the gross domestic product (GDP) reached SAR 10.1trillion (USD 2.6 trillion) in 2023 and is anticipated to grow to SAR11.6 trillion (USD 3 trillion) by 2030. This is based on a projected annual growth rate of 1.6%, as per data sourced from Oxford Economics. 

Based on transaction data from the Ministry of Justice, sales prices and rents have shown growth across Riyadh. Sales rates in 12% for villas, while apartments in Jeddah and DMA experienced growth of approximately 1% over the past 12 months. In Riyadh, approximately 69% of apartments sold in the last 12 months were priced between SAR 250,000 and SAR 1 million,primarily targeting the low to mid-income segments. Transaction volume in the south of Riyadh has grown due to the availability of stock, while the total transaction value remains highest in the north of Riyadh, reflecting sustained high demand in that area.

Meer Group’s Strategic Entry into Saudi Arabia’s Real Estate Growth Corridors

Meer Group is advancing a SAR 1 Billion villa development initiative across Riyadh, Jeddah, and Dammam—three cities positioned at the core of Saudi Arabia’s urban expansion under Vision 2030.

We are now extending exclusive partnership opportunities to institutional and HNI investors looking to codevelop premium residential assets in high-demand zones. With clear exit strategies, structured returns, and government-aligned urban plans, this is more than just investment—it's access to scale, security, and long-term growth. Meer Group isinitiating a landmark residential development valued at SAR 1 Billion,comprising over 1,000 premium villasacross phased rollouts in Riyadh, Jeddah, and Dammam. These cities represent the epicenters of Saudi Arabia’s economic diversification and population growth under Vision 2030. We are now inviting select HNI and institutional investors to participate as strategic partners in this multi-phase venture. Structured returns, phased liquidity, and integration with approved masterplans make this a high-confidence investment pathway.