Saudi Arabia ranks 15th globally in AI research output

RIYADH: As Saudi Arabia’s event season ramps up, the hospitality sector is already showing signs of strong performance. During the week of April 13–19, hotel transactions rose notably, signaling a promising start to a period packed with cultural, sports, and entertainment events across the Kingdom.

According to the latest point-of-sale data from the Saudi Central Bank, hotel transactions reached 677,000 during the week—an increase of 2.4 percent compared to the previous week.

The total value of these transactions climbed 2.2 percent to SR295 million ($76.8 million), up from SR288.6 million. Analysts attribute the growth to the influx of domestic tourists and visitors attending high-profile events.

April has proven to be a dynamic month for Saudi Arabia’s events calendar. The return of the Formula 1 Saudi Arabian Grand Prix to Jeddah from April 18 to 20 drew global attention, with Oscar Piastri securing a thrilling victory and Jennifer Lopez headlining a star-studded concert. Simultaneously, Dammam hosted the Asian U18 Athletics Championships from April 15 to 18, while the AFC U-17 Asian Cup concluded on April 20.

Cultural programming has also contributed to heightened visitor activity. The Saudi Film Festival, running in Dammam from April 17 to 23, and the ongoing Islamic Arts Biennale in Jeddah are attracting both local and international audiences.

While the hotel industry benefited from this surge in tourism and events, other sectors painted a less optimistic picture. Most consumer-facing industries recorded week-on-week declines in both transaction volume and value.

The restaurant and cafe segment, typically among the most active, experienced a 2.5 percent dip in transaction count to 56.98 million, while spending fell 4.6 percent to SR1.68 billion. Food and beverage outlets saw even steeper declines—transaction volume dropped 3.2 percent and value plunged 9.3 percent to SR1.65 billion.

Retail categories such as clothing and footwear were also affected, with transaction volume down 4.9 percent and spending down 4.2 percent. Electronics and electrical goods followed suit, reporting a 5.5 percent decrease in volume and a 4.8 percent decline in value. The health sector recorded a 5.4 percent drop in transactions and a 2.6 percent decrease in spending.

One bright spot in the consumer landscape was construction and building materials, which saw a modest 1.78 percent increase in transaction value to SR317.1 million, despite a slight 1.25 percent decline in volume.

In contrast, the telecommunications sector faced significant contraction, with a 7.4 percent drop in volume and a sharp 13.8 percent fall in spending. Jewelry sales—often sensitive to seasonal gifting trends—plummeted, recording a 13.3 percent decrease in transaction count and a 17.2 percent drop in value, totaling SR271.4 million.

Regionally, major cities across the Kingdom reported overall declines in spending. Riyadh saw a 1.1 percent drop in transaction volume and a 4.5 percent fall in value, totaling SR4.1 billion. Jeddah’s spending declined by 5.7 percent, while Madinah and Dammam experienced drops of 7.7 percent and 6.7 percent, respectively. Other cities, including Tabuk, Hail, and Abha, registered declines ranging from 7.9 percent to 12.5 percent.

Despite a broader slowdown in consumer spending, the hospitality sector stands out as a potential bellwether for the Kingdom’s evolving tourism landscape — driven by Vision 2030 and a concerted push to diversify economic activity through entertainment and cultural engagement.

RIYADH: Abu Dhabi recorded strong real estate activity in the first quarter of 2025, with continued price growth and investor demand following 28,249 transactions worth 96.2 billion dirhams ($26.2 billion) in 2024. 

A new market report by Bayut noted that the momentum from 2024 — marked by a 24.2 percent year-on-year increase in transactions — was driven by capital appreciation, competitive yields, and the emirate’s rising profile as a high-return investment destination. 

Abu Dhabi’s performance mirrors the broader UAE real estate market, which has shown resilience amid global headwinds, supported by population growth, regulatory reforms, and sustained foreign investor interest. 

Haider Ali Khan, CEO of Bayut, said: “Abu Dhabi’s real estate sector in 2025 continues to build on last year’s strong momentum, remaining an attractive destination for global investors.” 

He added: “The influx of capital from sovereign wealth funds and the growing entrepreneurial landscape are driving renewed interest in the emirate.” 

Khan, who is also the head of Dubizzle Group MENA and a board member of the Dubai Chamber of Digital Economy, said that with over 30 new projects launched, 7.8 billion dirhams in foreign investment recorded in 2024, and an increased focus on transactions, “Abu Dhabi is establishing itself as a smart, future-ready hub for property investment.” 

Affordable areas such as Al Reef, Al Ghadeer, Khalifa City, and Al Shamkha remained popular with cost-conscious buyers, while mid-market hubs like Al Reem Island and Masdar City offered value with amenities, the report noted. 

High-net-worth buyers focused on Saadiyat Island, Yas Island, and Al Raha Beach. Luxury prices climbed between 2 and 7 percent in the first quarter, with Yas Island leading gains at 6.57 percent. Al Samha posted the highest increase in mid-tier apartment prices at 7.2 percent while affordable segment prices rose up to 2 percent. 

Rental yields remained attractive, with Al Ghadeer and Al Reef leading the affordable segment at 9.95 percent and 8.38 percent respectively, while Al Reem Island and Masdar City posted yields between 5.57 and 7.6 percent, the report noted. 

Off-plan developments also saw strong demand, with Bloom Living and Al Reeman 1 attracting budget-conscious buyers, while Saadiyat Cultural District and Yas Beach Residences remained popular among luxury investors.