KAFD office occupancy reaches 80% as Riyadh premium space tightens. CFO Ibrahim Alsughayer says the district hosts 25 regional HQs and plans to expand residential units to 4,000.
Office occupancy at the King Abdullah Financial District in Riyadh has reached about 80%, with demand for premium commercial space still outpacing supply, CFO Ibrahim Alsughayer said.
Speaking to Argaam, Alsughayer said the district now hosts more than 140 local, regional and international companies. Tenants include Goldman Sachs, Brookfield, HSBC, Pfizer, PepsiCo and Alibaba. They span more than 10 sectors – financial services, technology and professional services are generating the most leasing demand.
KAFD currently employs more than 20,000 people within the district, supported by over 70 retail and lifestyle outlets. More stores are being developed to meet demand from residents, visitors and employees. In the residential segment, the district has about 1,000 units and plans to expand that to more than 4,000.
Alsughayer said the district is home to 25 regional headquarters under Saudi Arabia's Regional Headquarters Program. KAFD promotes the program among existing and prospective tenants and helps companies through the application process.
Among the key expansion projects is the A.11 district, valued at over SAR 1 billion. The 3.6-km project will connect different areas of KAFD through an integrated transport network, with trial operations scheduled to begin in 2027. Residential and hospitality projects are also under development.
KAFD is one of the largest developments in the Saudi capital, covering 1.6 million square meters. The high office occupancy rate reflects broader trends in Riyadh's commercial real estate market, where limited supply of premium space and steady demand from financial and tech firms are pushing occupancy higher.
For companies like Goldman Sachs and Alibaba – both tenants in the district – the concentration of top-tier office space and the ease of operating under the Regional Headquarters Program make KAFD a logical base for their Saudi operations. Goldman Sachs has an Alpha Score of 56, labeled Moderate, while Alibaba scores 52, labeled Mixed.
The district's expansion plans, particularly the residential buildout, could shift the tenant mix over time as more employees choose to live within the development. For now the story remains one of office supply constraints and steady corporate demand in central Riyadh.
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