Rents for premium office spaces in Riyadh rose over the last year, evidence that Saudi Arabia’s push to get international companies to make their regional headquarters in the Kingdom is starting to show results.
Rents for offices in top locations in Riyadh have risen 2.9% in the past 12 months, according to data from global property consultant Knight Frank and published by Bloomberg. The push is to make Riyadh, Saudi Arabia more of a business hub, and puts it in direct competition with neighboring Dubai.
The Kingdom says 44 global companies are moving their regional head offices to its capital after Saudi Arabia said it would select companies for government contracts and other deals only if they re-located regional offices within Saudi borders. Firms that move to Saudi Arabia will get exemptions from work visa limits, eased regulations, and help with the relocation of staff under a new program to facilitate business, according to Bloomberg. Baker Hughes Co., KPMG and Schlumberger all received licenses to open their regional headquarters in Saudi Arabia.
According to a report in law.com, which cited global commercial real estate consultancy Jones Lang Lasalle, demand for office space in the Saudi capital was strongest from the government and banking sectors, which broadly targeted large floorspaces in northern Riyadh.
The data also points to another positive for Saudi Arabia: the Kingdom’s proactive and progressive policies in curbing the spread of the Coronavirus has expedited the economy’s return to normalcy. Last month, Saudi Arabia said it would ease COVID-19 curbs from Oct. 17 in response to a sharp drop in daily infections and a considerable development in vaccinations.
