Office returns: Up to 59% of firms to increase investment in workplace fit-outs by 2030, says JLL 

The global office spaces market is projected to hit $4.9 trillion by 2032. Shutterstock
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Updated 04 April 2025
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Office returns: Up to 59% of firms to increase investment in workplace fit-outs by 2030, says JLL 

RIYADH: The global office sector is rebounding as companies scale back hybrid employment options, increasing demand for workspaces, a new survey shows.

The study by JLL, featured in the Global Office Fit-Out Costs Guide 2025, reveals that 59 percent of organizations are increasing investments in design and fit-outs. 

The report, which analyzes data from 68 cities across 40 countries, also highlights that office fit-out costs have risen in the past 12 months across all regions surveyed, with varying degrees of increase.

According to JLL, as in previous years, the highest fit-out costs are found in the US, Canada, and the UK, as well as Switzerland, Saudi Arabia, and the UAE.

Singapore and Japan also feature high in the list.

This correlates with the global office spaces market, which was valued at $3.1 trillion in 2022 and is projected to grow to $4.9 trillion by 2032. According to Allied Market Research, this represents a compound annual growth rate of 4.6 percent.

It also aligns with the growth of the office space market fueled by a rise in infrastructure projects for the commercial sector, including the development of new office buildings, business parks, and the renovation of workplaces in urban areas.

In a statement reflecting on the study, JLL’s CEO of Project and Development Services at Work Dynamics Cynthia Kantor said: “Five years following the start of the global pandemic, we continue to see the evolution and growing momentum toward the office sector.”

The JLL analysis further highlighted that multinational corporations must understand regional disparities in office fit-out costs to inform strategic planning.

Regionally, North America commands the highest office fit-out premium, with an average cost of 3,070 per sq. meter, well above the global average of 1,830 per sq. meter.

In Latin America, the average cost is 1,790, while in Europe, the Middle East, and Africa, the average price is 1,970. The Asia Pacific region offers the lowest average fit-out cost at $1,460.

Significant variations in office fit-out costs also exist between major urban areas. US cities lead the top 20 municipalities with the highest office fit-out costs, alongside prominent locations like Vancouver, Tokyo, London, and Dubai.

Fast-growing cities in India, South Africa, Vietnam, and China offer some of the lowest fit-out costs despite the fact they are seeing rapid construction growth and an evolving cost landscape.

Macro-economic impacts

The JLL report further sheds light on how, in the markets evaluated, increases in fit-out costs over the past 12 months were primarily driven by inflation, rising material costs, and currency fluctuations. 

Additionally, 75 percent of the markets saw a rise in raw material prices, while 50 percent experienced labor shortages that contributed to higher construction costs.

“Organizations need to factor in these potential cost factors throughout global construction when developing their fit-out budgets,” the JLL statement said.

It added that builder works or construction account for the largest component of fit-out costs  — 37 percent —  in all regions except Latin America. 

These costs can be most susceptible to raw material prices and supply chain risks. Mechanical and electrical expenses account for the second-largest cost, varying from 20 percent to 45 percent.

Sustainability continues to fuel growing demand

The study by JLL explains that as interest in healthier, energy-efficient workspaces surges and supply struggles to meet demand, the need for sustainable fit-outs is growing.

According to the survey, 60 percent of markets have seen a rise in client inquiries for more sustainable fit-outs over the past year.

This aligns with recent JLL Future of Work research, which revealed that 66.66 percent of organizations worldwide plan to increase their investment in sustainability over the next five years.

“A large part of sustainable fit-out costs are dedicated to mechanical and electrical services, which, across all countries, were found to account for an average of 29 percent of total fit-out expenses, with some regions reporting 40-50 percent of costs,” the JLL report said.

“However, these upfront costs are often where the greatest long-term cost efficiencies can be found, as research has also shown that investing in upgrades to M&E services can save between 10 percent - 40 percent on operational energy costs, depending on the level of investment and upgrade,” it added.

Investing in energy-efficient components during fit-outs and consulting with sustainability experts early in the planning phase can help incorporate sustainability requirements and costs into decision-making, thereby minimizing the risk of late adjustments, the JLL statement justified.

Optimism for offices amid caution over potential challenges

Despite a positive outlook, office fit-out development faces several challenges.

That said, the report underlines a need for global firms to address local and regional issues such as labor shortages, talent acquisition, and material availability, as well as liquidity to ensure project success.

The report also suggests that economic and political uncertainty, particularly trade and tariff implications, continue to create instability.

Consequently, early planning for lease expirations and strategic investment in existing buildings is set to benefit both landlords and occupiers, helping to manage costs and navigate the tighter timeframes caused by hesitancy around investment.

“The global office sector faces a complex landscape of challenges and opportunities in 2025,” the Director of Research and Strategy at Work Dynamics Europe, the Middle East, and Africa, Ruth Hynes, said.

“As corporate clients grow and expand their footprints, we anticipate the office construction will remain active even amid market uncertainty, and encourage early, strategic planning to ensure the success of fit-out initiatives,” Hynes added.


Saudi Arabia’s AI imperative: seizing the agentic enterprise to fulfill Vision 2030 goals

Updated 11 January 2026
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Saudi Arabia’s AI imperative: seizing the agentic enterprise to fulfill Vision 2030 goals

  • Workers who use AI daily are 64% more productive and 81% more satisfied with their jobs

RIYADH: As Saudi Arabia advances its ambitious Vision 2030, a transformative shift in the global workplace underscores a critical opportunity for the Kingdom’s organizations.

Slack’s latest Workforce Index survey revealed an unprecedented surge in the adoption and impact of artificial intelligence, presenting a clear pathway for Saudi businesses to lead in the era of digital labor, drive economic diversification, and create high-value roles for the future workforce.
“Saudi Arabia has all the ingredients to lead this shift: a young population, a government willing to modernize at extraordinary speed and industries preparing for global competition,” Mohammad Al-Khotani, the senior vice president and general manager of Salesforce Middle East told Arab News.

From adoption to advantage
The evidence that AI is a decisive competitive advantage is now overwhelming. Slack’s research, which surveyed 5,000 global desk workers, found that daily AI usage has soared by 233 percent in just six months.
Workers who use AI daily are 64 percent more productive and 81 percent more satisfied with their jobs than their non-AI-using colleagues. This trend is even more pronounced in specific markets; in the UK, daily AI users report an 82 percent increase in productivity and a 106 percent boost in job satisfaction.
According to the report, this surge is fundamentally reshaping work. The data confirms that trust grows with use: workers who use AI agents daily are twice as likely to trust them in areas like data protection and accuracy. 
Furthermore, AI is enabling workers to expand their capabilities strategically. Some 96 percent of AI users have leveraged the technology to perform tasks they previously lacked the skills to do.
Workers are now 154 percent more likely to use AI agents to perform tasks better and more creatively, not merely to automate them. The top productivity boosts come from eliminating extensive research, assisting with communication, and overcoming creative blocks.
Given this, Al-Khotani emphasized the macroeconomic imperative for Saudi organizations to lead, not follow. 
“Saudi Arabia is one of the few countries where the public sector has already set a global benchmark for digital service delivery. This creates a macroeconomic condition in which private-sector organizations must now match the pace set by the state,” he said. 
He further noted that “the scale of Saudi Arabia’s transformation, megaprojects, tourism growth, manufacturing build-out and new digital sectors, requires the productivity lift that only digital labor and AI agents can provide. Organizations that adopt early will move faster, earn citizen trust and gain market share.”
This perspective is echoed by Mohamad El-Charif, founder of the Middle East’s first sovereign regulatory compliance platform, Qadi.
“When we talk about digital labor in Saudi Arabia, we have to acknowledge that legal and regulatory AI is not optional. If we wait and come in as fast followers, we’ll end up running our core legal and regulatory workloads elsewhere, governed, and updated elsewhere,” he explained to Arab News. 
He argued that early adoption creates a lasting advantage: “Moving early with governed, sovereign agents, lets Saudi organizations encode their own local laws, internal policies, escalation paths and audit trails into the infrastructure.”
He added: “Under Vision 2030, leading Saudi banks, insurers, telcos, and energy companies are not just serving the domestic market; they’re becoming global players. If they build their regulatory backbone early and on their own terms, they don’t just stay in bounds at home, but they also carry that infrastructure with them as they expand.”

From automation to the agentic enterprise
This ground-level adoption aligns with a strategic corporate pivot identified in the 2025 MuleSoft Connectivity Benchmark Report, produced in collaboration with Deloitte.
The report highlighted that generative AI has reshaped human-AI interaction, and the next frontier is the rise of the “agentic enterprise.” This model involves autonomous AI agents that can operate with unprecedented independence, responding to queries, managing sophisticated tasks, and optimizing workflows without continuous human intervention.
The report found that 93 percent of IT leaders intend to introduce such autonomous agents within two years, with 40 percent having already done so and another 41 percent planning deployment within the next year.
This shift is accelerating rapidly; the average number of AI models in use has already doubled from 2024 projections, and IT leaders predict a further 78 percent increase over the next three years.
Salesforce Middle East’s Al-Khotani elaborated on this strategic potential, stating: “AI agents offer a multiplier effect across sectors that Vision 2030 prioritizes. This same efficiency can shift the economics of different industries.”
He added: “Legacy sectors can automate routine compliance, scheduling, documentation, onboarding and case resolution. Public services can move from reactive to proactive, anticipating citizen needs and completing tasks autonomously.”
Qadi’s El-Charif described this as turning “compliance from a blockage into an API,” accelerating Vision 2030’s ambitions. 
“For a thriving economy, the biggest gift you can give businesses is predictable, low-friction compliance,” he said, adding: “When you encode local laws, regulations and internal policies into agents, those checks move inside the workflow. Approvals can happen in days, not months, without lowering standards.”
However, this potential is gated by integration. Some 95 percent of IT leaders cite integration challenges as the primary hurdle to effective AI implementation. 
Organizations use an average of 897 applications, with 46 percent using over 1,000, yet integration levels have stagnated.

Opportunity for the Kingdom
For Saudi organizations, moving early to adopt and integrate AI is no longer optional, but a strategic necessity to lead in digital labor and deliver on Vision 2030’s goals of a vibrant society, a thriving economy, and an ambitious nation.
First, deploying AI in ways that deliver positive outcomes for both business and employees is key. The Slack Index showed that AI enhances human connection, not replaces it.
Daily AI users are 246 percent more likely to feel more connected to colleagues and report a 62 percent higher sense of belonging. This counters fears of displacement, showing AI can augment teamwork and culture.
Al-Khotani stressed the principles for positive deployment, noting: “AI must be introduced as augmentation, not substitution. When people understand that agents are handling low-value tasks, while humans focus on creativity, judgment and customer relationships, acceptance is extremely high.” 
He added that Salesforce data shows 84 percent of AI users say the technology makes them enjoy their job more, largely because it reduces repetitive work.
El-Charif advocated for a practical Outcome-Workflow-Governance framework to achieve this symbiosis, saying: “We design agents to take over that ‘read, retrieve, reconcile’ loop. 
“This doesn’t replace humans, but it elevates them out of the infrastructural gridlock.” 
He added: “That, for me, brings a real opportunity of using agentic AI to remove the glue work that exhausts people, and free up talent to focus on strategy, relationships and judgment, which is exactly what Vision 2030 is asking our institutions to excel at.”
Agentic AI can directly accelerate Vision 2030 ambitions. As noted by Goldman Sachs Research, generative AI can streamline business workflows, automate routine tasks and give rise to a new generation of business applications.
For Saudi Arabia, this means modernizing legacy sectors, improving efficiency in health care and financial services, and supercharging nascent industries. 
The MuleSoft report confirmed that APIs and API-related implementations now account for 40 percent of company revenue on average, up from 25 percent in 2018, demonstrating the tangible economic value of a connected, AI-ready infrastructure.
El-Charif also highlighted the societal dimension, stating: “For a vibrant society, this technology drives transparency and trust. When rules are encoded into agents, their application becomes consistent and audit-ready. This builds confidence in the market and investors know that compliance isn’t subjective, but structural.”
Finally, this transition will create high-value roles for humans. The integration challenge itself is a source of future jobs. The MuleSoft report found that developers spend an estimated 39 percent of their time building custom integrations, and IT staffing budgets are expected to rise by 61.5 percent year-over-year to meet AI demand.
Al-Khotani foresees specific new roles emerging from the AI integration challenge, saying: “Salesforce’s research shows that organizations adopting AI expect their data and integration teams to grow nearly 50 percent over the next three years.” 
He went on explaining that this opens pathways for new roles such as AI integration architects, agent workflow designers, and responsible AI officers and digital trust specialists.
El-Charif identified the emergence of roles such as “Legal Engineer,” — someone who understands both the regulation and how to encode it into logic.
Furthermore, as AI handles routine tasks, workers are freed for more strategic, creative, and innovative work, precisely the skills needed for a knowledge-based economy. 
Al-Khotani envisioned this shift elevating Saudi Arabia’s broader economic structure: “As agents take on routine and administrative tasks, Saudi Arabia’s workforce will shift toward higher-value roles that emphasize creativity, human judgment, and strategic decision-making.”
He added that this shift increases productivity per capita, a core Vision 2030 outcome, because the workforce is no longer limited by the volume of manual work it can process. “The macroeconomic structure becomes more innovation-driven and less labor-intensive.”
Global AI adoption is accelerating, worker productivity and satisfaction are skyrocketing with its use, and the next wave of enterprise value lies in agentic AI.
For Saudi Arabia, the mandate is to build the robust, integrated digital foundations today that will allow its organizations and workforce to not just participate in this future, but to lead it, turning the promise of Vision 2030 into an intelligent, automated, and human-centric reality. 
As Al-Khotani concluded: “The future economy will not reward automation alone, it will reward nations that use AI to elevate human potential. Saudi Arabia is positioned to be one of them.”