In the first quarter of 2024, Riyadh, the capital of Saudi Arabia, experienced a 5 percent growth in the leasing of Grade A office spaces compared to the previous quarter, according to a report by global real estate services provider Savills.

Riyadh reached an impressive occupancy rate of 98 percent early in the year, with rents climbing by 20 percent year on year.

However, despite strong demand, the number of office rental transactions dropped by 27 percent due to limited availability.

Savills' data shows that 74 percent of inquiries came from overseas, notably 37 percent from US corporations.

The city's ability to attract over 180 foreign companies, exceeding its initial target of 160, underscores growing corporate interest.

Major firms such as Franklin Templeton and Allen & Overy have recently established regional headquarters in Riyadh.

The Business Parks and the King Abdullah Financial District saw significant leasing activity, with 75 percent of transactions involving relocations to these areas.

To meet growing demand, over 420,000 square meters of new Grade A office space will be available by year-end.

Legal services, engineering, manufacturing, and IT sectors led leasing activities, with additional interest from technology, media, telecommunications, banking, financial services, and insurance companies.