Riyadh Among Top 15 Fastest-Growing Cities by 2033

Riyadh is ready to develop tremendously within the next decade.

The Savills Resilient Cities: Growth Hubs Index notes Riyadh will be among the world’s top 15 fastest-growing cities by 2033. The report looks at an economy’s future strength and growth, increase in personal wealth, population and migration growth, and population.

Riyadh has experienced a 26 percent spike in its population growth, along with an increase in the government’s infrastructure spending. Over the next 10 years, the city’s population will almost double from 5.9 million to 9.2 million.

Riyadh among fastest-growing global cities

Riyadh is the only non-Asian country in the Savills Growth Hubs index. India and Bangladesh’s GDP, in particular, will grow by 68% by 2033, based on projections. Vietnam and the Philippines, on the other hand, follow by a close 60%. This is driven by stronger personal wealth growth due to the expanding middle class, versus other cities in the world.

According to a report by Henley & Partners, experts project Riyadh will also welcome 300 millionaires by 2024.

Simon Smith, Savills Asia Pacific Head of Research & Consultancy, shared, “Global city growth looks set to further pivot from west to the east, with these cities set to be centers of innovation and important places for growing and scaling businesses.”

“This will underpin future demand for offices, logistics space, and homes, especially in Southeast Asia which is also benefiting from manufacturing drivers, as the need for more resilient supply chains has intersected with traditionally low-cost Asian land and labor markets becoming more expensive, forcing industries to consider relocating.”

“Rising personal wealth and disposable incomes will also open up further retail and leisure opportunities in many cities.”

Saudi Arabia’s potential

Richard Paul, Savills Middle East Head of Professional Services & Consultancy, notes the spending power of Saudi Arabia’s growing population.

Speaking to Arab News, he remarked, “Saudi Arabia boasts a population of around 36 million people and, astonishingly, 67 percent are under the age of 35.”

“The employment potential and ultimate spending power of this segment of the population over the next decade are enormous.”

Riyadh’s regional headquarters program

Tourism and the demand for regional headquarters in Riyadh has largely contributed to its development. The 2023 Riyadh season, for instance, attracted 20 million visitors, double the number in 2019.

In 2021, Saudi Arabia announced that it would prioritize foreign companies that have regional headquarters (RHQ) in the kingdom. In 2022, the Saudi Ministry of Investment (MISA) released guidelines on incentivizing companies that set up RHQ in Saudi Arabia. This is in collaboration with the Royal Commission for Riyadh City.

A year later, Saudi Arabia broke travel and tourism records, contributing to a positive GDP, improved employment rates, and visitor spending.

In the same year, Saudi Minister of Investment Khalid Al-Falih clarified that multinational companies with Saudi RHQs would enjoy tax relief. This includes a 30-year exemption on corporate income tax and withholding tax, as well as support services and discounts.

More than 120 international companies have already transferred their regional offices to Saudi Arabia within the first quarter of 2024. A number of these are located in Riyadh.

In April 2024, moreover, MISA announced that more than 350 international investors had been issued licenses to establish their RHQs in Saudi Arabia. Most of these regional headquarters are set to be located in Riyadh.

Among the MNCs that have set up regional headquarters in Saudi Arabia are Deloitte, IHG Hotels and Resorts, and Pepsico.

Photo by سيف الظاهر on Unsplash