Jeddah

Jeddah is Saudi Arabia's commercial capital, second-largest city, and the historic gateway to the Holy Cities of Makkah and Madinah. The city sits on the Red Sea, has long been Saudi Arabia's most cosmopolitan and merchant-driven urban centre, and serves as the launchpad for the Red Sea Project, NEOM (north), and the broader western Saudi tourism opening. Residential prices in prime districts (Al Shati, Al Hamra, Al Rawdah, Al Zahra) run SAR 4,500-9,500 per square metre, with gross yields of 6.0-7.5% -- above Riyadh because Jeddah is NOT subject to the September 2025 rent freeze. This makes Jeddah the more attractive near-term yield play within Saudi Arabia for foreign buyers. For international buyers (post-2025 foreign ownership law), Jeddah offers Red Sea coastal positioning, the Hajj/Umrah economy (10+ million pilgrims annually), and unconstrained rental income growth. The catch: regulatory pace lags Riyadh, designated foreign-ownership zones may roll out later, and infrastructure quality is patchier than the capital.