Jeddah’s urban transformation is gaining momentum, driven by sweeping real estate reforms and a surge in large-scale infrastructure investment. With construction advancing on Jeddah Tower, new partnership agreements reshaping the Jeddah Central masterplan, and major modernisation works underway at Jeddah Islamic Port, the city is rapidly positioning itself as a global hub for investment, tourism, and trade.

01 December 2025

The construction and real estate sectors in Jeddah are entering a period of significant accelerated momentum, driven by major national policy reforms and the resumption of flagship mega-projects.

The upcoming foreign real estate ownership law is positioned as a primary catalyst, expected to unlock substantial foreign direct investment (FDI) and stimulate construction across premium residential and commercial segments. Simultaneously, the resumption of work on the Jeddah Tower, the signing of key partnerships to drive forward the ambitions for the Jeddah Central Development and critical infrastructure upgrades at Jeddah Islamic Port signal a strong commitment to enhancing the city’s role as a global economic and logistics hub, in line with Vision 2030 objectives.

The core driver for future construction activity is Saudi Arabia’s approval of a new law permitting foreign ownership of real estate in designated areas, which will be effective from January next year. This legislation is expected to generate a significant wave of new demand from expatriates, licensed foreign companies, and international investors. Developers anticipate that this move will drive upward pricing momentum and stronger absorption rates, especially in premium districts such as the Jeddah Central waterfront, North Obhur, Al-Ruwais, and communities near King Abdulaziz International Airport.

The timing of these reforms is especially relevant for Jeddah’s flagship mega-projects. Greater investor participation is expected to benefit the ongoing Jeddah Central redevelopment and the revived Jeddah Economic City – home to the Jeddah Tower, which recently resumed construction. These large-scale projects stand to gain from a more diversified buyer base and increased global visibility.

As the Real Estate General Authority defines the specific zones eligible for foreign ownership, Jeddah is expected to see parallel investments in city infrastructure. Improved road networks, public realm upgrades, enhanced digital transaction platforms and more robust building regulation enforcement are likely outcomes as the city gears up for increased international participation.

These measures will complement the municipality’s ongoing development pipeline, which includes industrial expansions, heritage revitalisation in the Historic District, and major public waterfront improvements.

Consequently, contractors and developers are preparing for a renewed focus on mixed-use, residential, and commercial developments. The policy is also expected to accelerate the progress of existing stalled or slow-moving schemes, particularly along the northern and coastal corridors.

 

MAJOR REAL ESTATE & LUXURY PROJECTS

Construction on the flagship Jeddah Tower has resumed, with concrete pouring having restarted in January this year. The tower, which is set to be the world’s tallest at over 1,000 m, remains the centrepiece of the estimated $20-billion Jeddah Economic City, featuring luxury residences, commercial spaces, a Four Seasons hotel, and an observation deck (see Page 20).

Meanwhile, further enhancing Jeddah’s position as a global tourism hub is the Jeddah Central Project, a massive waterfront masterplan. Its developer Jeddah Central Development Company (JCDC) recently announced several high-profile hospitality partnerships, including agreements with Midad Real Estate to develop the Atlantis and One&Only hotels, an agreement with Mandarin Oriental for a luxury hotel on one of the development’s islands, and a management deal with Hilton for a Canopy by Hilton hotel overlooking the opera house. JCDC’s vision centres on shaping compelling experiences such as the marina, yacht club, opera house, and oceanarium to create a destination that drives repeat tourism and visitation (see Page 24).

The luxury branded segment is being anchored by two major collaborations between Dar Global and The Trump Organization announced this year. The first, the Trump Tower Jeddah, is a SAR2 billion ($531 million) 47-floor luxury residential tower situated on Jeddah’s Corniche. Work on this project has just been flagged off with the award of a SAR2-billion main contract to Arabian Construction Company (ACC), following the completion of the enabling and foundation works. This high-profile development is notable for featuring the kingdom’s first members-only social club, the Trump Club.

Expanding on this partnership, Dar Global announced its second major collaboration in September with the $1 billion Trump Plaza Jeddah. This mixed-use project, located along King Abdulaziz Road, will anchor Dar Al Arkan’s 1-million-sq-m “Manhattan” masterplan. The Trump Plaza is planned to redefine urban living by combining premium residences, serviced apartments, Grade-A office space, and townhouses, centered around a Central Park-inspired green spine. Construction for Trump Plaza is slated to commence shortly, with a projected completion date around 2029, further solidifying Jeddah’s role as a centre for branded, high-end real estate investment.

Demand for high-quality, modern residential communities remains strong, with key developers announcing or progressing with major projects.  Among the leading developers is ROSHN Group which is developing ALAROUS, its first community project in Jeddah, which  borders the group’s mixed-use MARAFY project (see Page 28). 

In the mixed-use sector, Saudi-based First Avenue for Real Estate Development has entered into an agreement with Al Shati Real Estate Fund to deliver one such project in Jeddah, covering an area of 15,619 sq m in the Al Shati District.  The company stated that the entire development is scheduled for completion within a three-year period.

Additionally, Baraka for Real Estate Development and Investment Company has partnered with global lifestyle hospitality operator Kerten Hospitality to launch The House Residence Al Salam District in Jeddah.  The 45,000-sq-m development is designed as a community-driven destination offering one- to three-bedroom apartments and villas alongside retail, dining, and co-working spaces.

In the hospitality sector, IHG Hotels & Resorts, one of the world’s leading hotel companies, has signed a partnership deal with Saudi-based real estate group Koushan for the development of two new hotels at King Abdullah Sports City (KASC) in Jeddah. This project spans 16,000 sq m and will comprise a 330-key Kimpton and a 255-room Even Hotel when completed in 2028.

 

PORT AND LOGISTICS INFRASTRUCTURE 

Significant investment has been channelled into modernising and expanding Jeddah Islamic Port to reinforce the Red Sea port city’s position as a western gateway and commercial hub. The South Container Terminal Expansion, a SAR3 billion investment by DP World and Mawani, was launched in May following a three-year upgrade. This project has transformed the terminal into one of the region’s most advanced container facilities, more than doubling its capacity from 1.8 million to 4 million TEUs, with provisions for a future capacity of 5 million TEUs. The upgrade heavily integrates automation, reducing gate transaction times from two minutes to just 10 seconds, and increasing reefer capacity from 1,200 to 2,340 to handle temperature-sensitive shipments.

Spanning 12.5 sq km, Jeddah Islamic Port is a major logistics and trade hub on the Red Sea coast which includes 62 multi-purpose berths, as well as a number of specialised terminals and state-of-the-art facilities.

Adjacent to the terminal, the Jeddah Logistics Park is currently under development by DP World. This 415,000-sq-m integrated logistics facility is scheduled for completion in Q2 2026.

Further improving port efficiency, the Port-to-Park Logistics Corridor, a SAR689 million project by Mawani, launched work in July. This 17-km corridor, which includes 12 bridges and two lanes in each direction, is designed to directly connect Jeddah Islamic Port to the Al Khumrah Logistics Park, thereby eliminating the use of internal city road networks and improving operational flow.

 

CULTURAL AND PUBLIC REALM PROJECTS

Al Balad Development Company has launched a $3.6-billion investment portfolio to develop hospitality assets in Historic Jeddah, the PIF-owned company announced in a post on social last month.  The investment covers the rehabilitation and development of a group of hospitality properties in the district. Spanning 2025 to 2038, the investment aims to develop more than 3,300 hotel keys across categories ranging from midscale to luxury, through flexible investment and financing models that include public–private partnerships, investment funds, and joint ventures. The announcement is a strategic step to contribute to the development and revival of historic Jeddah as a global tourism and cultural destination that combines heritage and a sustainable economy.

The Jeddah Historic District Program late last year unveiled the Culture Square, a 26,000-sq-m landmark project aimed at positioning the district as a global tourist destination. Culture Square is composed of two main facilities: the Center for Performing Arts and Cinema, which spans 16,000 sq m and will serve as the headquarters for the Red Sea Film Festival, featuring an 868-seat main theatre and five cinema halls; and the teamLab Borderless Museum, a 10,000 sq-m digital arts museum displaying approximately 80 interconnected works.

The innovative space blends art, technology, and nature, offering a transformative cultural experience and enriching the kingdom’s cultural landscape.

 

OUTLOOK

Jeddah’s construction sector is poised for one of its most dynamic growth phases, thanks to the potent combination of macro-economic reforms, such as the foreign ownership law, and targeted infrastructure investment, including the Jeddah Port modernisation and the Logistics Corridor development. The resumption of the Jeddah Tower and ongoing work on the Jeddah Central redevelopment should lead to increased demand for ancillary services, support infrastructure, and local workforce housing.

• Mega projects, market liberalisation reshape development outlook
• Jeddah’s real estate poised for dynamic growth: JLL
• Mega skyscraper races skyward
• Jeddah Central steps up hospitality expansion
• ROSHN achieves landmark sales, progress on ALAROUS
• Jeddah: Projects at a glance

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