Saudi Roundup: Q1 2026 Retail & Property Sector Growth
This week’s Saudi Roundup highlights sustained momentum across the Kingdom’s economy, including continued non-oil export growth, a strong real estate performance in Q1 2026, and accelerating developments in the sports and AI sectors.
General Business & Economy
Saudi Non-Oil Exports Rise 19% in 2025
Saudi Arabia’s non-oil exports, including re-exports, increased by 18.9% in 2025 compared with the previous year, highlighting the Kingdom’s ongoing efforts to diversify its economy beyond hydrocarbons. Total merchandise exports grew by 2.1% to SR1.17 trillion ($312 billion), despite a 4% decline in oil exports. Imports rose by 8.8% year-on-year to SR949.8 billion ($253.3 billion), while the trade surplus narrowed by 19.2% to SR220.2 billion ($58.7 billion) compared to 2024.
Saudi Arabia Retains Aa3 Rating as Moody’s Cites Economic Resilience
Saudi Arabia’s sovereign credit rating was affirmed at “Aa3” with a stable outlook by Moody's Ratings, which cited the Kingdom’s strong economic fundamentals, expanding non-oil economy, and resilience to regional geopolitical and trade developments. The rating reflects Saudi Arabia’s large economy, substantial hydrocarbon reserves, and highly competitive position in global energy markets, alongside continued improvements in institutional strength and policy effectiveness. The announcement was highlighted in a statement by the National Debt Management Center.
Wholesale and Retail Trade Revenues Record 7.3% Growth in Q1 2026
Saudi Arabia’s general operating revenue index for the wholesale and retail trade sector increased by 7.3 percent year-on-year in the first quarter of 2026, reflecting continued growth in commercial activity across the Kingdom. The index also recorded a 0.5 percent increase compared to the fourth quarter of 2025, according to preliminary data released by the General Authority for Statistics on Sunday.
The figures point to sustained momentum in Saudi Arabia’s consumer and business sectors, supported by ongoing economic diversification efforts and expanding domestic demand.
Saudi Plans Urban Cooling Project to Lower Riyadh Street and Building Temperatures by Up to 15°C
Saudi Arabia is set to roll out a large-scale urban cooling initiative in Riyadh aimed at reducing temperatures on roads, building facades, and other urban surfaces by as much as 15°C. Scheduled to enter the implementation phase next year, the project seeks to mitigate the urban heat island effect. The initiative follows the appointment of Greek consultancy PLANET as the lead advisor by the Royal Commission for Riyadh City, reflecting the Kingdom’s growing focus on sustainable urban development and climate resilience.
Sports Boulevard Appoints OVG Middle East to Operate Global Sports Tower in Riyadh
The Sports Boulevard Foundation has selected OVG Middle East as the operating partner for the Global Sports Tower, a move that advances the development of one of Riyadh’s most prominent sports and lifestyle projects. Designed as a vertical destination that brings together sports, wellness, and community-focused experiences, the Global Sports Tower aims to create a unique hub for active living in the Saudi capital, enhancing Riyadh’s appeal as a leading destination for sports and quality of life initiatives.
Technology & AI
Qiddiya and Google Cloud Partner to Build AI-Powered Smart Entertainment City
Qiddiya Investment Company has partnered with Google Cloud to establish the digital infrastructure for what is set to become one of the world’s largest AI-enabled entertainment destinations. Working through strategic systems integrator Master Works, Qiddiya will leverage Google Cloud’s data analytics and artificial intelligence capabilities to support citywide operations. The technologies will provide real-time visibility into construction progress, visitor demand trends, and operational performance across the destination.
HUMAIN and Accenture Accelerate AI Adoption at Scale Across Saudi Arabia
HUMAIN, a PIF-backed company delivering full-stack artificial intelligence capabilities globally, and Accenture (NYSE: ACN) have announced a strategic collaboration aimed at accelerating AI adoption across Saudi Arabia’s public and private sectors. Under the agreement, Accenture will act as a strategic reinvention and AI partner in the Kingdom, helping HUMAIN scale its AI capabilities and move organizations from early-stage pilots to fully operational, production-grade AI systems.
Business Expansions
Global Advisory Firm Kreab Opens First Middle East Office in Riyadh
Swedish strategic communications consultancy Kreab Worldwide has opened its first Middle East office in Riyadh, underscoring confidence in Saudi Arabia’s economic transformation and the growing demand for corporate advisory services in the Kingdom. Operating as Kreab Saudi Arabia, the new office will serve as the firm’s regional hub for the Middle East, providing strategic communications, public affairs, and corporate advisory services across the region.
Construction & Real Estate
Real Estate Market Shows Resilience as Q1 Transactions Reach SR112 Billion
The Saudi real estate sector remained resilient in the first quarter of 2026, supported by strong underlying demand, regulatory reforms, and sustained investor confidence, according to CBRE. In its latest market review, the consultancy reported that total real estate transaction values reached SR112 billion ($29.85 billion) in the first quarter, marking a 6.8 percent increase year-on-year.
The report attributed the sector’s continued growth to the momentum generated by Saudi Arabia’s Vision 2030 reforms, robust domestic demand, and extensive development activity linked to giga-projects, tourism expansion, and major infrastructure investments.