Riyadh, Saudi Arabia's capital, has been ranked among the top 15 fastest-growing cities globally by Savills, a leading real estate advisor. This rapid ascent is driven by the kingdom's Vision 2030 plan, which aims to diversify the economy and reduce dependence on oil. With 67% of its 36 million population under the age of 35, Riyadh boasts a young workforce that bolsters economic potential. Foreign investment in Riyadh surged, with a net inflow exceeding USD 2.5 billion in Q1 2024, and over 180 foreign companies established regional headquarters in the city in 2023. Riyadh's strategic location and focus on economic diversification position it for continued growth and investment opportunities.
The Saudi capital, Riyadh, is experiencing growth, positioning itself as a player in the global economy. A recent report by Savills, a leading global real estate advisor, has ranked Riyadh among the top 15 fastest-growing cities globally.
This rapid rise is largely driven by Saudi Arabia's ambitious Vision 2030 plan, a comprehensive economic and social reform program aiming to diversify the kingdom's economy and reduce its dependence on oil by 2030. Riyadh, as the country's capital, is at the forefront of this transformation.
One key factor propelling Riyadh's growth is its young and energetic population. With 67% under the age of 35, Saudi Arabia boasts a significant workforce of 36 million people. The employment potential and spending power of this young population are expected to be enormous over the next decade. The government is capitalizing on this by investing in infrastructure projects and creating new job opportunities.
Riyadh is attracting significant foreign investment, with a net inflow exceeding USD 2.5 billion (SR9.5 billion) in the first quarter of 2024 alone. The rise in investment in Riyadh is being driven by a combination of factors. Firstly, the availability of 30-year tax breaks for regional headquarters is a significant government incentive that attracts international companies looking to establish their presence in the region. Additionally, the growing and diversified market in Saudi Arabia, which is no longer solely reliant on oil revenue, offers promising prospects for businesses across various sectors. Moreover, Riyadh's strategic location at the heart of the Middle East positions it as a key hub for regional business operations, further enhancing its appeal to investors seeking to tap into the dynamic markets of the region.
Over 180 foreign companies set up their regional headquarters in Riyadh in 2023, exceeding initial targets of 160. This growing confidence from the international business community underscores the city's potential as a major economic force.
With its young population (67% under 35), strategic location, and focus on economic diversification, Riyadh is poised for continued growth. The city is expected to see a 26% population increase, reaching 9.2 million from the current 5.9 million in the next decade. This population growth will create further demand for infrastructure development and improved services. Riyadh's emergence as a global growth hub presents exciting opportunities for businesses and investors alike, with promising prospects in various sectors.
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