the real estate sector in the Madinah region has seen remarkable expansion amid a wave of development and investment projects underway since 2025, with a strong presence of commercial, residential, and mixed-use projects, which represent the largest portion of the region’s urban and investment development plan and reflect the rapid shift in land-use patterns and growing economic activity.
According to a report issued by the Madinah Chamber of Commerce, commercial projects account for approximately 80% of the total development projects currently underway in the region since 2025, with 206 projects out of a total of 280 spread across 12 development sectors; the list of projects also includes 25 projects in the mixed-use residential sector and 10 projects in the residential sector.
This focus on commercial, residential, and mixed-use residential activities reflects the growing importance of Al-Madinah as a vibrant commercial hub, alongside its ongoing urban and investment expansion, which supports economic diversification efforts and boosts real estate activity in the region.
200 billion riyals: the value of 280 projects
The Medina region comprises 280 development projects with a total value of approximately 200 billion riyals, according to data from the Madinah Chamber of Commerce, which highlights the scale of investments being poured into various development sectors.
Private-sector projects account for the largest share of these projects, totaling 250, alongside 20 government projects and 10 quasi-government projects.
The commercial sector leads in terms of the number of projects, with 206, while the residential sector kommerciell comes in second with 25 projects, highlighting the significance of activities related to commerce, real estate, and commercial-residential uses within Medina’s development plan.
The development projects also include 10 projects in the residential sector, along with 11 in the health sector, 8 in the education sector, 5 in the religious sector, and 4 in the tourism sector.
The list also includes three projects in the public utilities and public services sectors and the corporate sector, as well as one project in the entertainment sector and another in the agricultural sector.
Real Estate Grows Alongside Urban Expansion
Development activity extends across vast investment areas, with the total area of major development projects exceeding 30 million square meters.
This scale of investment land reflects the broad scope of urban development in Madinah, coinciding with a shift in land-use patterns, thereby supporting sustainable urban development trends.
The real estate, residential, and commercial sectors stand out in this landscape as a key component of the urban expansion the region is experiencing, given the growing need for mixed-use projects, in parallel with the economic and service-related developments taking place in Madinah.
The report notes that this expansion is part of a government initiative aimed at achieving sustainable economic development, improving the quality of public services in Madinah, and keeping pace with the growing number of visitors, including pilgrims and Umrah performers.
Target of 30 Million Visitors by 2030
Part of the developmental and urban expansion in Madinah is linked to the targeted growth in visitor numbers, as the city aims to welcome 30 million visitors annually by 2030.
This target positions commercial, residential, and mixed-use residential projects as key components of the region’s development, alongside other projects currently being implemented to meet the needs of economic and urban growth.
Investment areas exceeding 30 million square meters reveal the scale of expansion in major projects and the accompanying changes in land use in line with the region’s development trajectory.
The Private Sector Leads Most Projects
The private sector emerges as the primary driver of the development project landscape in Madinah, accounting for 250 of the total 280 projects.
This is alongside 20 government projects and 10 quasi-government projects, reflecting the diversity of entities involved in implementing development projects, while private investment continues to play a strong role across various sectors. The investment environment highlighted in the report encompasses multiple sectors, including construction, transportation and logistics, trade, tourism, hospitality, food service, and other promising sectors. This diversity enhances opportunities for expanding investments in Al-Madinah, especially with the growing scope of commercial, residential, and mixed-use projects, in addition to projects linked to other service and economic sectors.
125,000 Job Opportunities
The impact of these development projects is not limited to urban and investment expansion; the report expects these projects to contribute to the creation of more than 125,000 direct and indirect job opportunities.
The projects also aim to provide more job opportunities for citizens and encourage the participation of local talent in the economic development process, thereby enhancing the economic impact of investments in the region.
The Madinah Chamber of Commerce notes that the scale of these projects reflects the magnitude of the investments and their impact on the national economy and the region’s development, while also highlighting the contribution of Saudi Vision 2030 to transforming Madinah into an advanced economic hub and an attractive destination for local and international investments.
At the same time, the development trajectory is linked to improving the quality of life for the region’s residents and visitors through the implementation of diverse projects spanning commercial, residential, and mixed-use developments, as well as the health, education, tourism, and service sectors, among others.
Al-Madinah Al-Munawwarah… A Growing Commercial and Urban Hub
The map of development projects currently underway reveals a clear emphasis on commercial, real estate, and residential activities in Madinah’s development trajectory, with investments totaling approximately 200 billion riyals.
The commercial sector leads the way in terms of the number of projects, while the mixed-use and residential sectors feature prominently among the project map’s key components, reflecting the broad scope of urban development and the diversity of investment land uses.
With the investment areas of major projects exceeding 30 million square meters and a target of welcoming 30 million visitors annually by 2030, Medina is entering a new phase of urban and economic expansion, driven by projects—the majority of which are led by the private sector—and by investments spanning commerce, real estate, construction, tourism, hospitality, transportation, logistics, and other sectors.
