KAFD posts 80% office occupancy as demand outstrips supply, attracts 25 regional HQs

Ibrahim Alsughayer, CFO at the King Abdullah Financial District Development and Management Co. (KAFD)

Ibrahim Alsughayer, CFO at the King Abdullah Financial District Development and Management Co. (KAFD), said office occupancy has reached about 80%, with demand for office space continuing to outstrip supply amid strong demand for high-quality offices in Riyadh.

Speaking to Argaam, Alsughayer said KAFD continues to see strong demand for commercial space, supported by its strategic location and integrated ecosystem, and is home to more than 140 local, regional and international companies, including global financial institutions such as Goldman Sachs, Brookfield and HSBC, as well as leading companies including Pfizer, PepsiCo and Alibaba.

He added that KAFD’s tenants span more than 10 economic sectors, including financial services, technology, professional services, energy, fintech and legal services, along with other high-growth industries. He said financial services, technology and professional services are among the sectors generating the strongest demand for space in the district.

He also said KAFD’s integrated model combines workplaces, residential offerings and lifestyle amenities in a single destination, helping cement its position as a preferred choice for local and international companies operating in the Kingdom.

Alsughayer added that demand for commercial space continues to grow to serve more than 20,000 employees in the district, which currently has more than 70 retail and lifestyle outlets, with new stores being developed to meet rising demand from residents, visitors and employees.

In the residential sector, Alsughayer said KAFD currently has about 1,000 residential units, with plans to increase the number to more than 4,000.

On the Regional Headquarters Program for global companies, Alsughayer said KAFD is currently home to 25 regional headquarters, adding that the district plays a key role in supporting the program by promoting it among existing and prospective tenants and assisting companies seeking to benefit from it throughout the various stages of the process.

Alsughayer noted that KAFD continues to execute its expansion plans under a long-term strategy focused on developing its remaining land, with the A.11 district, valued at more than SAR 1 billion, among the key projects underway.

The project extends 3.6 kilometers and will connect different parts of the district through an integrated transport network, with trial operations scheduled to begin in 2027 under the approved implementation plan, alongside continued expansion of residential projects and hospitality and entertainment offerings.

According to Argaam’s data, KAFD is one of the largest projects in the Saudi capital, located in northern Riyadh and covering an area of 1.6 million square meters.