{"id":80336,"date":"2025-07-06T16:11:42","date_gmt":"2025-07-06T13:11:42","guid":{"rendered":"https:\/\/amlak.net.sa\/?p=80336"},"modified":"2025-11-25T21:10:32","modified_gmt":"2025-11-25T21:10:32","slug":"46-%d9%86%d8%b4%d8%a7%d8%b7%d9%8b%d8%a7-%d8%b5%d9%86%d8%a7%d8%b9%d9%8a%d9%8b%d8%a7-%d9%81%d9%8a-%d9%82%d9%84%d8%a8-%d8%a7%d9%84%d9%85%d8%af%d9%86-%d9%83%d9%8a%d9%81-%d9%8a%d8%a4%d8%ab%d8%b1-%d8%b0","status":"publish","type":"post","link":"https:\/\/amlak.net.sa\/en\/80336\/","title":{"rendered":"46 industrial activities in the heart of cities How does this affect the real estate sector?"},"content":{"rendered":"<p>A major shift is on the horizon for Saudi Arabia's urban landscape, after <strong><a href=\"https:\/\/mim.gov.sa\/\">Ministry of Industry and Mineral Resources<\/a> <\/strong>Allowing 46 low-impact industrial activities within cities and on commercial streets. The decision, which was based on the findings of a central committee that included eight government agencies, puts <strong><a href=\"https:\/\/amlak.net.sa\/en\/77657\/\">Real estate market<\/a><\/strong> We are at a critical juncture of readjustment to new changes in land use and urban activities.<\/p>\n<p>The activities that were allowed within the commercial streets were categorized after a comprehensive study of 1,143 industrial activities, and were categorized by environmental impact into three main categories: High-Skilled, Skilled, and Basic, with a focus on activities with low environmental impact. According to the ministry, the first phase of implementation begins on July 6, 2025, with the reclassification of workers and existing facilities within cities, followed by the second phase on August 3, 2025, which includes new industrial facilities that will be built within the urban area.<\/p>\n<h4><span style=\"color: #800000;\">Shift in land and building values<\/span><\/h4>\n<p>The decision represents a paradigm shift in the relationship between industry and the city, while at the same time posing a number of challenges and opportunities for <strong><a href=\"https:\/\/amlak.net.sa\/en\/76130\/\">Real estate sector<\/a><\/strong>. On the one hand, this shift is expected to translate into increased demand for mixed-use properties that can accommodate light industrial units such as small workshops, food labs, and digital production centers, in addition to commercial or residential use. On the other hand, the unplanned expansion of these activities may cause urban and environmental pressures that may negatively impact the attractiveness of certain neighborhoods.<\/p>\n<p>According to market observers, commercial areas within major cities such as Riyadh, Jeddah, and Dammam may witness a gradual shift in usage patterns, especially in vital streets that can attract light industrial activities that require proximity to the end consumer. Land and building prices that are adaptable to this new pattern of use are expected to rise, while some residential properties adjacent to these activities may see a relative decrease in value if strict controls are not imposed to ensure the quality of life for residents.<\/p>\n<h4><span style=\"color: #800000;\">Strict controls and environmental monitoring<\/span><\/h4>\n<p>The environmental aspect was a major focus of the central committee's work, as the ministry required each industrial facility to submit an environmental impact study at its own expense, while the competent authorities confirmed that the continuation of industrial activity in any location within cities will be subject to a comprehensive review that includes safety, health impact, and surrounding land uses, with the possibility of correcting the status of some violating facilities, moving them or closing them if they conflict with the urban trends of the region.<\/p>\n<p>Specialists point out that international experiences in this field, such as the \u201curban workshops\u201d model in Berlin, or light industry zones in Singapore, have proven that integrating light industry into the urban fabric can stimulate real estate growth and revitalize the local economy, provided there is smart urban planning and functional separation between uses to ensure that the quality of life is not harmed. Cities such as Dubai have seen a similar evolution, with areas such as Al Quoz and Al Ras transformed from closed industrial complexes to mixed-use spaces that include art studios, retail markets, and creative production workshops.<\/p>\n<h4><span style=\"color: #800000;\">New real estate opportunities<\/span><\/h4>\n<p>In Saudi Arabia, experts say the decision will generate a new wave of <strong><a href=\"https:\/\/amlak.net.sa\/en\/54024\/\">Real estate opportunities<\/a><\/strong>This includes the development of hybrid projects combining light manufacturing, retail, residential or office space, requiring real estate developers to adopt more flexible design models and possibly rehabilitate older buildings to suit the needs of these activities. The value of small warehouses and warehouses within cities is also expected to grow, especially as the e-commerce and logistics assembly sectors grow.<\/p>\n<p>Despite the economic and developmental potential of this shift, there are fears that these activities could expand at the expense of urban planning, or the leakage of industrial activities with medium or high environmental impact if oversight is weak. Therefore, the success of this experiment depends on the ability of regulators to implement strict requirements, find smart urban solutions that separate industrial and residential areas, as well as provide incentives to apply green building and sustainable energy concepts, thus enhancing the attractiveness of industrial investment within cities without affecting the lifestyle.<\/p>\n<h4><span style=\"color: #800000;\">Changing demand patterns<\/span><\/h4>\n<p>Experts in the real estate sector emphasize that exploiting the decision requires investors and developers to move quickly to explore areas that are amenable to real estate transformation and take advantage of the change in demand patterns, especially with the possibility of creating new spaces for industrial real estate investment, which was previously limited to the periphery or closed industrial zones.<\/p>\n<p>Observers believe that the Kingdom is preparing for a new phase of integration between economic and urban activities, in which real estate is a direct partner in industrial development, and the city is a production platform as much as a living space, a move that enhances the flexibility of the economy and moves the real estate market from traditional monotony to a multidimensional and multifunctional dynamic.<\/p>","protected":false},"excerpt":{"rendered":"<p><span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading time: <\/span> <span class=\"rt-time\"> 3<\/span> <span class=\"rt-label rt-postfix\">Minutes<\/span><\/span>A major shift is on the horizon for Saudi Arabia's urban landscape, after the Ministry of Industry and Mineral Resources announced that 46 low-environmental impact industrial activities will be allowed within cities and on commercial streets. The decision, which was based on the findings of a central committee that included eight government agencies, puts the real estate market at a critical stage of readjustment to new variables in the use of ... <a title=\"46 industrial activities in the heart of cities How does this affect the real estate sector?\" class=\"read-more\" href=\"https:\/\/amlak.net.sa\/en\/80336\/\" aria-label=\"Read more about 46 \u0646\u0634\u0627\u0637\u064b\u0627 \u0635\u0646\u0627\u0639\u064a\u064b\u0627 \u0641\u064a \u0642\u0644\u0628 \u0627\u0644\u0645\u062f\u0646.. \u0643\u064a\u0641 \u064a\u0624\u062b\u0631 \u0630\u0644\u0643 \u0639\u0644\u0649 \u0627\u0644\u0642\u0637\u0627\u0639 \u0627\u0644\u0639\u0642\u0627\u0631\u064a\u061f\">Read 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