KSA records 21% growth in residential real estate transactions in Q2: CBRE

The average apartment prices, on a per square meter basis, across the Kingdom have increased by 6.2 percent in the year to the second quarter of 2022. 
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Updated 25 August 2022
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KSA records 21% growth in residential real estate transactions in Q2: CBRE

RIYADH: Saudi Arabia recorded SR36 billion ($9.58 billion) worth of transactions in the residential real estate sector in the second quarter of 2022, recording a 21.4 percent increase over the same period last year, the latest market report by the global real estate adviser CBRE revealed.

While the volumes of residential transactions fell by 19.9 percent to over 44,000 deals in the second quarter when compared to last year, the Kingdom saw the overall value of translations increase due to a spike in apartment prices.  

The average apartment prices, on a per square meter basis, across the Kingdom have increased by 6.2 percent in the year to the second quarter of 2022. 

 This was led by Saudi city Alkhobar which recorded a growth of 11.3 percent in apartment prices, followed by  Jeddah and Riyadh with a spike of 5 percent and 4.2 percent, respectively, in prices in the second quarter. 

However, aside from Alkhobar, all major cities registered a sharp decline in the annual rate of price growth in the second quarter of 2022, compared to the quarter earlier, revealed CBRE’s Saudi Arabia Real Estate Market Review Q2 2022 report. 

 In line with the national trend, all the major cities saw a fall in the number of residential transactions in the year to the second quarter, with the Kingdom’s capital leading the chart with over a 33 percent fall compared to a year earlier. Jeddah and Dammam followed suit with a drop of 6.2 percent and 3.4 percent respectively.

 While Saudi Arabia’s economy has gone from strength to strength recently, analysts at CBRE said the Kingdom’s real estate market performance remains “fragmented” on a city and asset class level. 

 “Given the scale of the change that the Kingdom is undergoing across all asset classes, this is to be expected,” said Taimur Khan, head of research – MENA at CBRE. 

 However, he said their long-term outlook on Saudi Arabia’s real estate sector remains “optimistic,” despite some of the short-run challenges.

Office sector

The CBRE report said visitation to the workplace in Saudi Arabia remains above its pre-pandemic baseline and now sits 19.3 percent above the baseline. 

But, the capital city Riyadh continues to remain at the center of commercial activities, where demand continues to significantly outstrip supply, it said. 

Riyadh has had limited new supply over the years, resulting in average rental prices and occupancy levels staying on the higher side. According to the CBRE report, Riyadh saw occupancy levels rising over the last quarter by 0.7 percentage points to reach 98.1 percent on average in the second quarter of 2022.

“Constrained supply levels have also continued to support growth in rental rates, where in the year to the second quarter of 2022, average Grade A and Grade B rents increased by 3.9 percent and 4.2 percent respectively,” the CBRE said in the report. 

In Jeddah, with the Grade A segment of the market being landlord-favored, it said average rents have increased by 2.4 percent in the 12 months to June 2022. 

Hospitality sector

Amid a massive push to develop the country's tourism and hospitality sectors, Saudi Arabia saw all the key performance indicators of hotels improving in the second quarter, with the average occupancy rate in the year to date to June 2022 increasing by 19 percentage points. 

This helped hotels improve their average daily rates, which increased by 13.5 percent, resulting in their revenue per available room seeing massive growth of  72.8 percent over the same period last year, according to the CBRE report. 


From barrels to bytes: How AI is powering Saudi Arabia’s industrial transformation

Updated 08 January 2026
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From barrels to bytes: How AI is powering Saudi Arabia’s industrial transformation

  • Inside the Kingdom’s drive to merge energy expertise with digital intelligence

RIYADH: Artificial intelligence is moving beyond concept to become a cornerstone of Saudi Arabia’s energy sector, reshaping how oil, gas, and power systems are managed and optimized.

Industry giants like Saudi Aramco are embedding smart systems into their operations to boost efficiency, reliability, and sustainability—key pillars in the Kingdom’s efforts to modernize its industrial base and diversify its economy.

According to the International Energy Agency, oil and gas companies were among the first to adopt digital technologies. The agency estimates that applying AI to power plant operations and maintenance could save up to $110 billion annually by 2035 through reduced fuel consumption and maintenance costs.

For Saudi Arabia, this technological momentum offers both a blueprint and an opportunity. Under Vision 2030, integrating data and intelligent automation is transforming how energy is explored, refined, and delivered.

At the heart of Saudi Aramco’s operations is a digital transformation strategy centered on artificial intelligence, big data, and the industrial Internet of Things. These technologies are applied at every stage of production—from mapping reservoirs and optimizing drilling to improving efficiency and safety.

AI also underpins Aramco’s Digital Transformation Program, which develops in-house smart tools and data-driven platforms designed to cut emissions, reduce costs, and enhance performance while ensuring a reliable energy supply.

A prime example is the Upstream Innovation Center, where engineers have implemented AI solutions that reduce fuel gas use in boilers, improve efficiency, and detect potential leaks through fiber-optic monitoring. At the Khurais oil field, more than 40,000 sensors monitor approximately 500 wells via an Advanced Process Control system—the first of its kind for a conventional oil field at Aramco. Digitization at Khurais has increased production by around 15 percent, doubled troubleshooting speed, and lowered both costs and environmental impact.

These advances illustrate how Aramco’s network is evolving into a connected, adaptive model, blending traditional engineering expertise with digital intelligence.

DID YOU KNOW?

• AI could save up to $110 billion a year in global power plant fuel and maintenance costs by 2035.

• Advanced Process Control enables real-time monitoring of hundreds of oil wells in the Kingdom.

• AI-powered simulations now replace weeks of manual analysis, enabling faster operational decisions.

As Saudi Arabia develops an AI-driven energy economy, the King Abdullah University of Science and Technology is bridging the gap between digital innovation and industrial application. 

Bernard Ghanem, chair of the Center of Excellence for Generative AI, said the university is working with Saudi Aramco to develop AI systems that predict the chemical properties of materials and accelerate research into direct air capture technologies for carbon dioxide removal.

He told Arab News that KAUST is partnering with SABIC and ACWA Power to apply AI in process optimization and materials discovery, turning lab-scale research into practical solutions for the energy sector.

Ghanem said KAUST’s generative AI materials program combines a robotic chemistry lab with its AI Chemist foundation model, a system that accelerates the development of catalysts, battery materials, and membranes for clean energy applications.

“This is our lab of the future, automating experimentation and speeding up energy innovation,” he said.

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Mani Sarathy, professor of chemical engineering at KAUST, noted that AI-based reinforcement learning tools are already improving efficiency in hydrocarbon refineries by enhancing simulations and shortening analysis cycles.

“AI is helping energy companies run complex simulations that once took weeks, enabling faster and more precise operational decisions,” he told Arab News.

Sarathy added that the next phase will combine automation with expert oversight. Hybrid human-AI control systems, he explained, are likely to become standard in critical operations, balancing digital autonomy with safety and reliability as Saudi industries expand AI deployment.

These efforts highlight KAUST’s growing role in transforming AI from an academic discipline into a driver of industrial innovation in Saudi Arabia’s energy sector under Vision 2030.

Meanwhile, Skeleton Technologies is bringing AI-driven energy storage solutions to Saudi partners, solutions that are already reshaping industrial systems across Europe and beyond. In Europe, the company combines artificial intelligence and advanced materials to reduce energy use and improve efficiency in data centers, electricity grids, and defense systems.

“Our solutions allow AI infrastructure to consume less electricity and reduce grid connection needs, making AI operations more energy efficient,” Arnaud Castaignet, vice president of government affairs and strategic partnerships at Skeleton, told Arab News.

Inside its factories, Skeleton uses AI-driven digital twin models, created with Siemens Digital Industries, to simulate production, optimize operations, and enable predictive maintenance, Castaignet said. At the core of its technology is curved graphene, a proprietary carbon material that gives Skeleton’s supercapacitors exceptional conductivity.

“It allows our supercapacitors to charge and discharge within microseconds, around 12 microseconds, something batteries cannot do,” Castaignet said.

The company’s flagship Graphene GPU system, built on these supercapacitors, cuts energy use in AI data centers by up to 40 percent and reduces grid requirements by 45 percent while boosting computing performance. The devices are free of lithium, nickel, and cobalt, relying instead on graphene derived from silicon carbide—essentially sand—processed entirely in Germany.

“To build sustainable AI infrastructure, you need energy-saving hardware as well as renewable power,” Castaignet added. “Our Graphene GPU shows both can work together.”

As Saudi Arabia continues linking engineering expertise with digital intelligence, its industrial progress is measured not only in barrels of oil but also in bytes, data, and the smart systems shaping its energy future.