Inside the Kingdom: Building Legacy, Not Just Assets

Insights for the WMFO Business Lunch in Monaco

As Saudi Arabia accelerates its Vision 2030 transformation, international interest in its real estate and hospitality sectors is rapidly growing. From shimmering new cityscapes to giga-projects like NEOM and The Red Sea, and less known such as Dan Company and Sports boulevard, the opportunities appear boundless. But beneath the impressive renders and headlines lies a more nuanced truth: long-term value here doesn't come from simply buying in—it comes from building right.

For global family offices and institutional investors looking to access the Saudi opportunity while managing risk, structured deals and strategic partnerships are the key. Success depends not just on capital, but on the ability to navigate local context, align with national priorities, and foster trust with on-the-ground players.

Joint Ventures: Sharing Upside, Mitigating Risk

Joint ventures and co-development models are emerging as the preferred route for many foreign investors. These structures enable access to high-potential assets while reducing exposure to operational, regulatory, and reputational risks. They also reflect the government’s emphasis on partnerships that contribute knowledge, innovation, and long-term commitment—not just funding.

At Metrix Advisory and Aetos MFO, we often see that the best deals are ones that share upside but also share responsibility. Local partners bring invaluable advantages: market intelligence, political and tribal relationships, land access, and cultural fluency. Meanwhile, foreign partners offer capital, technology, and global operating standards. Structured correctly, these synergies create defensible value.

Giga-Projects and Long-Term Vision

The jewels of giga-projects capturing global attention— Armani Branded Residences Diriyah Gate, Zannier eco-resort in Zardun, one of Magna's destinations located in NEOM aren’t mere developments. They are long-horizon national statements. Each is built around a strategic cluster of industries: tourism, culture, health, sports, and advanced tech. These aren’t assets to flip—they're ecosystems to grow within.

For foreign investors, that means a shift in mindset. Returns will be less about yield compression and more about being embedded in the national growth story. The long-term vision is patient, but powerful—and it rewards those who understand the trajectory.

Local Partnerships: The Trust Multiplier

Saudi Arabia is still a relationship-driven market. While the regulatory environment is modernizing, success often hinges on credibility and cultural alignment. No one can afford a "fly-in, fly-out" mentality.

Strong local partnerships act as both a strategic filter and an execution engine. They unlock doors that capital alone cannot—especially when navigating land acquisition, project approvals, or stakeholder alignment. More importantly, they act as a trust multiplier in a market that values discretion, continuity, and purpose.

Cultural & Regulatory Nuances

Saudi Arabia’s business climate is evolving quickly—but it still retains important cultural layers. Decision-making often takes time, influenced by interpersonal trust, hierarchies, and broader social dynamics. Regulatory approvals, while improving, require detailed alignment with local governance.

The most successful foreign investors respect these dynamics. They don't impose timelines; they co-design them. They build bilingual teams, employ culturally fluent advisors, and understand that transparency here also means discretion.

The Real Demand Behind Hospitality & Real Estate

Unlike other emerging markets where real estate demand can be speculative, Saudi Arabia’s hospitality and real estate momentum is driven by layered demand:

• Domestic Travel: A Growing Middle Class Exploring the Kingdom

Saudi Arabia’s domestic travel market is undergoing a significant transformation. Fueled by a rapidly expanding middle class with rising disposable incomes and increased social freedoms, more Saudis are discovering the diversity and beauty of their own country. From the pristine beaches along the Red Sea coast to the historic sites of Al-Ula, the sweeping deserts, and vibrant urban centers like Riyadh and Jeddah, domestic tourism is gaining momentum.

This shift is supported by government initiatives aimed at promoting local tourism as a pillar of economic diversification under Vision 2030. Enhanced infrastructure, relaxed social norms, and newly introduced leisure and entertainment options encourage Saudis and residents alike to travel more frequently within the Kingdom. The growing appetite for family-oriented resorts, cultural festivals, and experiential travel is driving demand for a wider variety of hospitality offerings and residential developments tailored to domestic lifestyles. This expanding internal market represents a stable and sustainable source of growth for investors, less prone to the volatility of international travel trends.

• Business Travel: The Impact of Global Firms Establishing Regional Headquarters

Saudi Arabia is rapidly becoming a regional hub for multinational corporations and international firms seeking access to Middle Eastern, African, and Asian markets. The Kingdom’s investment-friendly reforms, economic diversification efforts, and strategic geographic location make it an attractive base for global companies.

As these firms establish regional headquarters and operational centers, the demand for premium office spaces, business hotels, and extended-stay residences grows accordingly. Corporate travelers require modern amenities, connectivity, and lifestyle options that align with international standards. This trend is not limited to Riyadh but is expanding to emerging business districts and special economic zones linked to giga-projects.

Additionally, the rise in business travel brings opportunities for ancillary real estate segments such as coworking spaces, serviced apartments, and mixed-use developments that integrate work, living, and leisure. Investors tapping into this trend benefit from the steady, predictable cash flows associated with corporate clients and the increasing professionalism of the Saudi business environment.

• Lifestyle Migration: Saudis Seeking Second Homes and Wellness Retreats

A notable trend shaping the Saudi real estate landscape is the growing interest in lifestyle migration among affluent Saudis. Beyond primary residences, there is increasing demand for second homes, holiday retreats, and wellness-focused communities that provide respite from urban life.

This demand is driven by evolving preferences toward health, privacy, family-oriented living, and proximity to nature. Gated communities, luxury resorts, and wellness estates offering amenities such as spas, fitness centers, and green spaces are becoming highly sought after. Many Saudis view these properties not just as investments but as essential elements of a balanced lifestyle.

Lifestyle migration is also tied to broader socio-cultural shifts, including greater acceptance of leisure activities, women’s increased participation in society, and a youth demographic keen on quality-of-life improvements. These factors create a fertile environment for developers and investors to create projects that emphasize wellness, security, and exclusivity.

• Religious & Cultural Tourism: Beyond Pilgrimage

Religious tourism remains one of Saudi Arabia’s strongest growth pillars, particularly in the holy cities of Jeddah, Makkah, and Madinah. With ambitious government targets to increase pilgrim numbers exponentially in the coming years, this segment drives robust demand for hospitality, transportation, and residential services.

However, the opportunity extends far beyond the traditional Hajj and Umrah pilgrimages. Increasingly, Muslims worldwide are seeking second homes or extended stays in these cities, motivated not only by spiritual devotion but by the emergence of vibrant, modern urban environments that blend rich heritage with contemporary living standards.

These cities are evolving to offer more than religious services; they now provide high-quality infrastructure, entertainment, shopping, healthcare, and education—making them attractive year-round destinations for families and retirees. This diversification in demand creates unique investment opportunities in residential real estate, hospitality, and mixed-use developments that cater to both pilgrims and permanent residents. These trends aren’t hype—they’re policy-backed and demographically sound. But to tap into them, foreign investors must approach the market with nuance, structure, and long-term alignment.

In Closing: Build With, Not For

Saudi Arabia doesn’t just want capital. It wants commitment. It rewards foreign investors who are here to build with, not for the market. That means co-creating, co-investing, and co-growing with trusted partners.

As we prepare to speak at the WIMFO Business Lunch in Monaco on June 19, we look forward to exploring these themes further—how strategic deal structuring, local partnerships, and a grounded understanding of Saudi’s regulatory and cultural frameworks can unlock real opportunity.

In Saudi real estate, it’s not who arrives first, but who plans and acts wisely over time.