Saudi real estate sector playing key role in GDP growth: Minister

The Saudi property market is projected to reach $101.62 billion by 2029, growing at an annual rate of 8 percent from 2024. Shutterstock
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Updated 31 March 2025
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Saudi real estate sector playing key role in GDP growth: Minister

RIYADH: Saudi Arabia’s expanding real estate sector is contributing directly to the growth of the Kingdom’s gross domestic product, according to the minister of economy and planning.

Faisal Al-Ibrahim told Al-Arabiya Business that the Saudi government has created an enabling environment for the private sector, allowing it to focus on qualitative investment in real estate development.

Those remarks come amid a broader government effort to stabilize the real estate market in Riyadh. Over the weekend, Crown Prince Mohammed bin Salman announced a series of measures aimed at addressing rising land prices and rental costs, including lifting restrictions on land transactions and development in northern Riyadh. 

The initiative, based on studies by the Royal Commission for Riyadh City and the Council of Economic and Development Affairs, seeks to increase housing accessibility, regulate market dynamics, and ensure sustainable growth in the sector.

In his remarks, Al-Ibrahim also highlighted the importance of cost regulation in supporting the private sector, enhancing market competitiveness, and driving sustainable economic growth.

Regarding upcoming policies and regulations, he said: “All legislative measures will be announced in due course, and their impact will be monitored in a structured and institutionalized manner to ensure they achieve the desired objectives.”

According to an analysis by real estate services firm JLL released at the end of March, the Saudi real estate sector is poised for further expansion, driven by Vision 2030’s economic diversification goals.

The firm said that the Kingdom’s non-oil sector is projected to grow by 5.8 percent in 2025, up from 4.5 percent in 2024.

The report highlighted Saudi Arabia’s strong construction activity, with project awards totaling $29.5 billion in 2024. A strong real estate market is critical for the Kingdom’s ambitions to position itself as a global hub for tourism and business. 

The property market is projected to reach $101.62 billion by 2029, growing at an annual rate of 8 percent from 2024.

Despite global economic headwinds, JLL’s country head for Saudi Arabia, Saud Al-Sulaimani, emphasized that Vision 2030’s strategic diversification efforts are attracting both domestic and international capital. 

Key sectors, particularly in Riyadh and Jeddah, are seeing sustained demand, with tourism and infrastructure initiatives further stimulating investment.


Saudi Arabia approves over 1k chemical permits, awards 172 mining licenses 

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Saudi Arabia approves over 1k chemical permits, awards 172 mining licenses 

RIYADH: Saudi Arabia processed more than 1,000 chemical permit requests in November and awarded exploration rights for 172 mining sites in what the government described as its largest licensing round on record. 

The Ministry of Industry and Mineral Resources said it handled 1,095 chemical clearance requests during the month, including 1,041 approvals for non-restricted chemicals and 54 for restricted substances, covering 2,081 product classifications, the Saudi Press Agency reported. 

It forms part of ongoing efforts to accelerate the discovery and development of mineral resources valued at over SR9.4 trillion ($2.51 trillion), aligning with Vision 2030’s objective to position mining as the third pillar of the national industrial sector.   

Ministry spokesperson Jarrah Al-Jarrah explained that the chemical clearance service enables industrial investors to obtain import or export permits for chemicals used in manufacturing through the “Sanaei” digital platform.  

“He clarified that the service aims to ensure that chemical clearances for industrial facilities are granted through streamlined procedures and in a timely manner, thus serving investors and facilitating the entry of their materials through ports of entry,” the SPA report stated. 

Al-Jarrah explained that the service plays a critical role in enhancing industrial output by developing and automating permit procedures for production-related chemicals as part of the ministry’s digital services.  

In a separate development, the ministry announced that 24 domestic and international companies and consortiums won exploration licenses across 172 mining sites in Saudi Arabia, with 76 of those sites awarded through a multi-round public auction.   

These sites span three mineral belts in the Riyadh, Madinah, and Qassim regions, with committed exploration spending exceeding SR671 million during the first two years of project implementation.  

The ministry described this licensing round as the largest mining tender in the Kingdom’s history.   

The competition covered more than 24,000 sq. km across regions known for strategic minerals including gold, copper, silver, zinc, and nickel.   

Additionally, the ministry noted that 26 qualified companies participated through the electronic bidding platform, progressing through a transparent process that began with prequalification and culminated in competitive multi-round auctions.  

The ministry confirmed that these investments aim to develop untapped exploration zones and enhance the utilization of Saudi Arabia’s mineral wealth, strengthening global supply chains.   

It also announced plans to launch further exploration license tenders covering 13,000 sq. km across Madinah, Makkah, Riyadh, Qassim, and Hail, with additional opportunities to be revealed at the 5th Future Minerals Forum in Riyadh from Jan. 13 to 15.  

These efforts, the ministry stated, reflect a broader mining strategy focused on maximizing resource potential, attracting foreign investment, creating employment opportunities, and integrating value chains to establish Saudi Arabia as a global mining hub.