Saudi Arabia's Non-Oil Economy Drives Real Estate Growth
The Kingdom of Saudi Arabia is witnessing significant growth in its non-oil economy, which is driving the real estate market forward. According to CBRE's latest report, the kingdom's non-oil economic activities expanded by 2.9% year-on-year in Q1 2026, contributing to an overall GDP growth rate of 3%. This strong performance is expected to continue, with government capital expenditure supporting large-scale projects across the country.
The real estate sector is benefiting from this sustained investment environment, with multiple giga-projects and infrastructure developments progressing through various stages of execution. Riyadh remains a key focus for investment activity, while other cities such as Makkah, Madinah, the Eastern Province, and Aseer also recorded substantial project awards.
Government-backed entities are playing a crucial role in driving activity, with companies like the National Housing Company (NHC), Diriyah Company, Expo 2030 Riyadh Company, and Rua Al Madinah Holding continuing to support confidence in the kingdom's long-term growth strategy.