Nawat Investment CEO: Riyadh rent caps to spur qualitative development

Muhannad Al-Saif, CEO of Nawat Investment Co., sheds light on the positives of rental caps in Riyadh

Muhannad Al-Saif, CEO of Nawat Investment Co., asserted that the five-year halt on rental increases in Riyadh builds confidence and fosters stability for developers and tenants alike, supporting long-term planning and greater investment by alleviating worry over fluctuating rental returns.

He told Argaam that the stability in rents creates a more mature market and stimulates qualitative development.

According to the executive, Riyadh’s hospitality sector is experiencing fast-paced demand growth that outstrips current supply, driven by the massive surge in commercial activities and international events.

Under the Ministry of Tourism’s directives, Riyadh aims to add around 120,000 new hotel rooms by 2030, in response to the escalating demand and in a bid to reinforce the capital city’s position, Al-Saif stated.

The CEO highlighted Nawat Investment’s strong foray into the hospitality sector, targeting the development of more than 1,000 hotel keys in Riyadh by 2030, through projects that correspond with Saudi Arabia’s tourism and economic transformation.

Al-Saif also unveiled the commencement of a new expansionary phase for the company, covering the development of more than 250,000 square meters (sqm) of mixed-use projects with total investments exceeding SAR 1.7 billion, in line with the company’s strategy for the coming years.

Moreover, an eventual financial market listing is part of the company’s strategic plan for the upcoming period, the CEO pointed out, clarifying that the immediate focus remains on fortifying its asset portfolio and expanding its existing developments.

Since its restructuring in 2018, Nawat Investment has developed more than 150,000 sqm of residential, commercial, and office spaces, leveraging more than 35 years of experience.

The company adopts various development models, including direct ownership, third-party development, and partnerships with landowners, the CEO concluded.