Riyadh, Saudi Arabia — The Saudi office hospitality tech growth 2024 report highlights record-breaking expansion across Saudi Arabia’s real estate, tourism, and technology sectors, driven by global investment, major developments, and government initiatives under Vision 2030.
According to real estate firm Knight Frank, Grade A office rents in Riyadh surged 23% over the 12 months ending March 2025, reaching SAR 2,700 per square meter, the highest on record. Grade B office rents rose by 24%, with both segments reporting near-total occupancy, reflecting strong demand from foreign companies.
The government’s Regional Headquarters Program has been a key driver, attracting 600 international firms as of February 2025. Incentives such as tax exemptions for up to 30 years have further fueled demand. While market equilibrium is expected over the next two years, 2.7 million square meters of new office space are set to be delivered.
Jeddah and Religious Tourism Boost Hospitality and Real Estate Growth
In Jeddah, Grade A office rents increased by 4%, Grade B by 6%, with an occupancy rate of 95%. Expansion by companies such as Emaar and Al Nahla Group, alongside major projects like Jeddah Gate and Jeddah Rose, will add approximately 255,000 square meters of office space by 2028.
The hospitality sector has also experienced unprecedented growth. Saudi Arabia recorded 30 million international visitors in 2024, driven by the growth of religious tourism and the expansion of hotel infrastructure. The Kingdom aims to attract 70 million international visitors annually by 2030.
Makkah’s hospitality sector reported a 35.7% increase in revenue per available room (RevPAR), reaching SAR 673, while average daily rates rose by 12.3%. Madinah achieved the highest hotel revenue in the country at SAR 891 per night, up 11.8% year-on-year.
Over 10,000 new hotel rooms are expected in Makkah and Madinah by 2027, supported by strategic projects including Rowa Al-Haram and Rou’a Al-Madinah.
Saudi Tech and Data Center Growth Drives Digital Transformation
Saudi Arabia’s technology sector is also experiencing rapid expansion. The data center market is projected to grow from $1.78 billion in 2023 to $3.2 billion by 2029, with capacity expected to exceed 1,000 MW by 2030.
Global tech firms including Microsoft, Amazon Web Services, Google, and Oracle have launched or announced major expansions in Saudi Arabia. Amazon alone is investing $5.3 billion across key cities, while Chinese companies such as Alibaba and Huawei are expanding their operations.
The report concludes that Saudi Arabia is undergoing a significant economic transformation, driven by real estate development, tourism growth, and investment in digital infrastructure. These trends position the Kingdom as a regional and global leader across office space, hospitality, and technology.
The Saudi Standard’s View: Growth Reflects Investor Confidence as Saudi Arabia Builds Global Market Leadership
The Saudi office hospitality tech growth figures for 2024 highlight the Kingdom’s rapid progress in positioning itself as a global hub for business, tourism, and technology. Record office rents, near-full occupancy rates, and surging visitor numbers underscore Saudi Arabia’s ability to attract capital, companies, and talent—aligned with Vision 2030 goals.
The remarkable expansion of the tech sector, with global leaders such as Amazon, Microsoft, and Huawei deepening their footprint, reflects growing confidence in the Kingdom’s digital infrastructure, regulatory clarity, and investment environment.
Maintaining this momentum will depend on effective project delivery, workforce development, and ensuring that growth remains inclusive across regions and industries. The current trajectory indicates that Saudi Arabia is not only meeting its ambitious targets but also laying the foundations for long-term competitiveness and economic diversification.
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