Madinah moves ahead with development projects worth over $53bn - As-salamu alaykum
As-salamu alaykum - Madinah region is pushing forward with 224+ development projects valued at more than SR200 billion (about $53 billion), showing how investment is accelerating in the Kingdom.
A report from the Al-Madinah Al-Munawara Chamber said the region’s real estate market saw transactions above SR2.7 billion in Q1 2025, about an 8% rise year-on-year.
Madinah is becoming one of Saudi Arabia’s fastest-growing regional economies, thanks to big investments in construction, trade, and tourism. In early 2025 the region had strong growth: construction made up 24% of the workforce and trade 20%, reflecting efforts to diversify the economy.
The report noted these investments cover many sectors: trade, tourism, construction, transport, health, education, and more. The projects are expected to create over 125,000 direct jobs, a significant boost for the area.
The chamber also pointed to good investment opportunities in the Investors’ Zone, showing confidence in Madinah’s long-term prospects across trade, logistics, technology, and real estate. The report emphasized the chamber’s role in offering useful analysis and data to help businesses plan, supporting regional growth in line with Vision 2030.
In February the Madinah Region Development Authority reported improvements in quality of life, economic growth, and cultural projects. Madinah placed 88th in Euromonitor International’s 2024 Top 100 City Destinations Index and seventh in the Tourism Performance Index, and has 3,200 sites on the National Urban Heritage Register.
Saudi policy changes easing foreign ownership of real estate - allowing international investors to buy shares in listed firms that hold property in Makkah and Madinah - are expected to bring more capital into the region.
Previous reports have shown rapid growth in residential transactions in the holy city, and major government-backed projects are continuing to reshape Makkah and Madinah’s urban landscape, improving living conditions for residents and pilgrims while supporting broader tourism and economic goals.
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