UK-based Cheval Collection plans to launch up to seven projects in Saudi Arabia over the next three years as the market opens up to foreign buyers.
“There is a lot of potential in Saudi [Arabia] because real estate laws are changing for the better,” the hospitality focused company's managing director, Mohammed Alawadhi, told The National at the Cityscape Global conference in Riyadh. “We are optimistic that we will be launching one [branded residence] project in the next year.”
The kingdom updated its rules this year. From January, it will allow foreigners to buy property in specific zones in Riyadh and Jeddah, with “special requirements” for home ownership in Makkah and Madinah.
It is also permitting foreign citizens to invest in publicly listed local companies that own property in Makkah and Madinah, as the kingdom seeks to attract more international investment.
Cheval this week launched its second project in Riyadh in partnership with Saudi-based Ladun Investment Company.
Cheval Maison – Sulaymaniya, a hotel apartments project close to King Salman Park, will have 150 units including studio, one-bed and two-bed apartments for long and short term stays, Mr Alawadhi said. There will be other amenities including a gym and pool as well as food and beverage outlets at the new property.
It is expected to open in 2028, with the construction set to begin next year.
The company’s first project in Riyadh is currently under construction, due to open in 2027.
The company is also aiming to launch six to seven more hotel apartment projects in Saudi Arabia in the next three years as demand remains strong from tourists and corporate executives, he said.
“Saudi Arabia is opening up all the hidden gems for the world to come and see. So tourism has really been growing, besides the religious tourism in Makkah and Madinah that has been increasing every year by millions,” Mr Alawadhi said.
“But then we look at Jeddah, we look at Riyadh, we look at Dammam, I'm talking the big, huge cities. Economically, they are improving.”
Saudi Arabia has outlined ambitious plans to develop its tourism sector by boosting air connections, investing in airports and starting a new airline, Riyadh Air, to drive more international visitors to the kingdom.
The country received 116 million domestic and inbound tourists in 2024, a 6 per cent increase compared to 2023, the Ministry of Tourism said.
Total tourism spending for domestic and inbound travel reached about 284 billion Saudi riyals ($75.7 billion), an 11 per cent year-on-year increase.
“There is a huge demand in the market and less supply,” Mr Alawadhi said.
“A lot of corporates, they prefer to stay in an apartment, because they come here for projects. They come here for two weeks, three weeks. A lot of them want to have their own place here and serviced apartments suit them very well.”
Saudi Arabia is pushing ahead with plans to reform its economy and cut its reliance on the sale of hydrocarbons to generate revenue.
Developing non-oil sectors of the economy such as tourism, technology and mining, as well as further boosting foreign direct investment, are central planks of the kingdom's Vision 2030 agenda.
Outside of Saudi Arabia, Cheval Collection, which owns nine properties in London, also aims to expand in other Gulf countries including Oman, Kuwait, Qatar and Bahrain.
Its Middle East portfolio currently comprises Cheval Maison – The Palm Dubai, which opened in 2023, and Cheval Maison – Expo City Dubai, which opened in March this year.
“We only have two in Dubai. But then we are looking at launching more in Dubai. We are looking at launching in Abu Dhabi. We need to be visible everywhere,” Mr Alawadhi said.
