According to Savills Growth Hubs Index, Riyadh ranks among the top 15 fastest growing cities by 2033, and it is the only non Asian city featured in the report and its potential is calculated to be 26% per cent population growth. Inclusion of Saudi’s capital city in the report highlights the capability of the city towards development and business expansion as set out by the strategic Vision 2030. Also the young population of Saudi Arabia with 67% of its population under the age of 35 is a boon to the national development of the country. The infrastructural development and technological innovation is also redefining the economic atmosphere of the city. The employment potential of the country is also huge, as 67% of its population are below the age of 35 and this significantly contributes to the spending power of the population.
Now let’s look in detail, what are the economic factors that helped Riyadh to be considered as a top 15 fastest cities by 2033. In this blog, let’s explore the key factors and initiatives that are driving rapid development in Riyadh and how it will benefit both its residents and visitors alike. So join us and let’s dive together to see what makes Riyadh a fastest growing city.
Riyadh: A Promising Land for Corporates
The remarkable boom in the interest of corporate companies towards the capital city of Saudi Arabia underscores the potential of the city towards national growth. With strategic plans of Saudi Arabia like Vision 2030, the country aims to increase the foreign investment in the country, and establishment of 180 company’s regional headquarters in the Kingdom, compared to its target of 160 is a proof of its economic excellence in global platforms.
Surge in the Foreign Investment into Saudi Arabia
Recently Saudi Arabia has witnessed an increased Foreign Direct Investment (FDI). According to the data shared by the government, there has been a 5.6 percent increase in the net FDI inflows to SAR 9.5 bn ($ 2.53 bn) in the first quarter of 2024 compared to the previous year. 30 years of tax relief for regional headquarters, flourishing markets, promising opportunities are some of the factors that are attracting foreign companies to this Arab Kingdom.
Real Estate Implications in Riyadh
There has been a huge shift in growth from the west to east and this leaves great implications in the real estate market as well. Real estate market is experiencing a huge growth and the demand for offices, logistics space, manufacturing, homes are also on the rise. Rise of personal income and disposable wealth are also creating huge opportunities for developments in leisure and retail sectors. And these developments are going to leave a huge impact on the development of Riyadh city as well.
Population Growth in Riyadh
Riyadh is expected to see a 26% surge in population growth; from 5.9 million to 9.2 million in the coming decade, which is actually an asset for the development of the country. This population boom is expected to increase the government investment in mega projects on infrastructure, and continued improvements in amenities and services.
Cities That Were Among the Top 15 in Savills Growth Hubs Index
The Savills Growth Hubs Index evaluates the Resilient Cities Index and examines the economic strength of the top global cities and identifies the top growing cities for 2033. Among the cities identified by the report, top are the Indian and Chinese cities followed by the cities from Vietnam, the Philippines, Bangladesh and Saudi Arabia. Bengaluru in India tops the Savills Growth Cities Hubs Index, followed by Ho Chi Minh City in Vietnam. Delhi and Hyderabad of India and Shenzhen of China are the other top 5 cities included in the list.
The cities in India and Bangladesh are expected to average the GDP growth of 68% between 2023 and 2033. At the same time, other cities of Southeast Asia, including those of Vietnam and Philippines are set to get a 60% growth in GDP.
Increased emphasis on technology driven growth of Asia and the resulting transformation of the continent is the reason for the dominance of the Asian cities in the report. Other factors include planned investments on infrastructure, improved connectivity and competitive business environment.
Start Your Business in Riyadh With The Help of Analytix
Riyadh, the capital city of Saudi Arabia is proclaimed to be a city with opportunities. It has undergone remarkable transformation on its economic growth over the past few decades. As the fastest growing urban cities in the Middle East, the city is evolving day by day and is experiencing extensive development. It’s the oil boom of the 1970s that led to the urbanisation of the capital city of Saudi Arabia. But later, it made a conscious effort to diversify its economy to withstand the fluctuating oil prices and other vulnerabilities. This has paved the way for the growth and resilience of the economy of the country. The government’s strategic initiatives like Vision 2030, mega and giga projects are acting as the catalyst for the economic growth of the city.
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Also Read: How to Start a Business in Riyadh?
Final Thoughts
In conclusion, recognition of Riyadh as one of the top 15 fastest developing cities by Savills Growth Hubs Index underscores the dynamic nature and ambitious transformation of the city in the future. With strategic plans like Vision 2030, the city is on its path to diversify its economy and enhance its infrastructure, quality of life and cultural offerings. Acting as a magnet for global investments, it is growing as a hub for innovation, talent, and tourism. Addressing its vulnerabilities, the city has been resilient and committed towards a sustainable growth and this has positioned itself in the global sphere of economic growth. Growth of Riyadh is a compelling example of how a strategic plan and systematic diversification effort can ace the development of the country in a competitive world.
Hope this blog provided you with an idea on the economic growth of the capital city of Riyadh and the business opportunities it offers. By being listed as one among the top 15 fastest growing cities in the world by 2033, Riyadh offers numerous opportunities for growth and development.
Feel free to reach out to us, if any of your doubts regarding the topic discussed are left unanswered. Till then happy reading!
