Riyadh – When stars align with the Growth, Stability & Potential

Riyadh, the capital of Saudi Arabia, is at the forefront of a transformative economic revolution under the Vision 2030 initiative. This ambitious plan aims to diversify the economy, attract investments, and create a business-friendly environment, making Riyadh a premier destination for real estate investment and economic growth.

I – Economic Growth and Stability

GDP Growth

Saudi Arabia’s GDP experienced a remarkable surge of 8.7% in 2022, the fastest growth rate in over a decade. This growth is driven by high oil prices, increased non-oil sector activity, and significant government investments. Saudi Arabia is diversifying its economy beyond oil, investing in sectors such as technology, entertainment, tourism, and renewable energy, creating a wide array of opportunities for investors .

Economic Stability

As the largest economy in the Arab world, Saudi Arabia benefits from substantial financial reserves and a stable currency. This environment provides a secure platform for investors looking to capitalize on emerging opportunities.

High Quality of Life

Riyadh is working towards improving the quality of life for its residents through initiatives aimed at enhancing healthcare, education, and recreational facilities.

            GDP Growth of Saudi Arabia (2015-2023)

II- Economic Transformation and Business-Friendly Reforms

Vision 2030

Vision 2030 is the driving force behind Saudi Arabia’s unprecedented growth and diversification. The initiative aims to reduce oil dependency and expand into new sectors, creating a fertile environment for investments.

Business-Friendly Environment

Recent reforms allow 100% foreign ownership in various sectors, enhancing Riyadh’s appeal to international investors.

  Business Friendly Reforms in Saudi Arabia

III- A Cultural Hub

Rich Heritage

Saudi Arabia is home to 10,000 historic sites and over 100 cultural sites, including 5 UNESCO World Heritage Sites. The Kingdom attracts millions of visitors with seasonal entertainment events that draw more than 7 million tourists, supporting the goal of welcoming over 94 million tourists annually.

As a host for the 2034 World Cup and Expo 2030, Saudi Arabia is set to receive significant international attention, boosting tourism and creating a myriad of investment opportunities in various sectors.

IV- A Young and Urbanized Population

Demographics

Saudi Arabia boasts a young, educated population with a median age of around 30 years. Significant investments in education, including world-class universities like KAUST, contribute to a skilled workforce ready to drive innovation.

Female Workforce and Entrepreneurship

The female workforce participation rate has increased to over 33%, supported by government initiatives that promote entrepreneurship and attract global talent.

Population Insights of Saudi Arabia

V- A Flourishing Real Estate Market

Government Support

The real estate market in Riyadh is buoyed by a robust government support framework, including a $620 billion Public Investment Fund (PIF) that finances major projects and developments.

Investment Appeal

With 0% income tax and policies encouraging 100% foreign ownership, Riyadh offers a compelling landscape for real estate investment, particularly in the luxury sector, where demand continues to rise.

Real Estate Market Growth in Saudi Arabia (2015-2023)

VI- Advantages & Benefits

A 30-Year Corporate Tax Exemption

Investors can benefit from a generous 30-year exemption from corporate taxes, making it a financially attractive environment for businesses and entrepreneurs

Premium Residency for Investors

By investing a minimum of 4 million SAR, investors can unlock premium residency status, providing access to exclusive benefits and a streamlined process for living and working in Saudi Arabia

Zero Income Tax and Capital Gains Tax

Saudi Arabia offers a tax-friendly environment with no personal income tax and no capital gains tax, allowing investors to retain more of their profits

Infrastructure Development and Economic Growth

The Saudi government is heavily investing in infrastructure development, including the construction of new cities, airports, and transport networks. This commitment to modernisation is creating a robust framework for businesses to thrive.II- Advantages & Benefits

VII- Conclusion

Investing in Riyadh and Saudi Arabia presents a unique opportunity to capitalize on a rapidly growing market characterized by favorable economic conditions and government support. With its zero tax environment, extensive infrastructure development, and significant upcoming events, the region is poised for substantial growth. Riyadh, as the capital, embodies the promise of a modern, diversified economy, making it an attractive destination for investors seeking long-term returns and impactful opportunities.

Karim Salame – [email protected]

McGardens Estate | November 2024 | www.mcgardens-estate.com

Sources: Saudi Arabian General Investment Authority; Saudi Vision 2030; Saudi Ministry of Investment; Saudi Ministry of Culture; Saudi Ministry of Sports; General Authority for Statistics, Saudi Arabia; Saudi Ministry of Health, Global Peace Index