Saudi Arabia has launched the Boulevard Business Park in Riyadh, backed by over SAR 1 billion ($270 million) in funding and incentives aimed at attracting international companies and fostering local job creation. Located in the Boulevard district, the park adds 60,000 square meters of new office space to the city, further enhancing Riyadh’s appeal as a business hub. The announcement was made by the General Entertainment Authority on social media platform X.
Despite the creation of multiple business zones and financial districts, Saudi Arabia continues to struggle with attracting foreign direct investment (FDI) at the level necessary to meet its Vision 2030 target of $100 billion per year. The slowdown in new headquarters being established in Riyadh, as reported in official statistics for the second quarter of 2024, highlights the challenges facing the kingdom.
The Saudi government has introduced special zones with tax incentives and a streamlined regulatory environment to draw international enterprises. However, recent data from the UK’s Royal Institution of Chartered Surveyors (RICS) indicates a potential plateau in the commercial property market, with demand for space growing by only 20% in Q2 2024 compared to a 53% rise in Q1.
In an effort to further support foreign businesses, Saudi Arabia has introduced a new commercial code to simplify judicial processes and reduce bureaucratic hurdles. Despite these challenges, the kingdom has emerged as a regional center for venture capital, with funding for small businesses increasing by 159% to $2.36 billion in 2023.
As the kingdom races towards its ambitious Vision 2030 goals, the Boulevard Business Park represents another step in Saudi Arabia’s ongoing efforts to attract global investment and stimulate economic diversification.
