SAUDI ARABIA: Following a directive by Crown Prince Mohammed bin Salman, authorities in Riyadh have imposed a freeze on all residential and commercial rent hikes, marking a sweeping policy aimed at stabilizing the cost of living in Saudi Arabia’s capital. The move applies across the city and comes amid rising public concern about affordability for both families and businesses. Officials described the measure as part of a broader push to strengthen economic security and support Vision 2030 goals.
The new regulation prohibits landlords from raising rents on existing leases, giving tenants greater financial predictability and curbing speculative practices in the real estate market. By halting increases in both residential and commercial sectors, the policy is designed to protect not only households but also small and medium-sized enterprises that have struggled with fluctuating operating costs. This is particularly significant for entrepreneurs and shop owners whose expenses often rise sharply due to rental adjustments.
Under the order, violators face strict penalties, including fines of up to 12 months’ rent, a punishment intended to deter noncompliance. Enforcement mechanisms will include inspections, a dedicated complaints platform for tenants, and coordination between municipal authorities and the Ministry of Municipal and Rural Affairs and Housing. These steps signal the government’s determination to translate the directive into immediate, on-the-ground impact rather than allowing it to remain a mere announcement.
Economists and policy analysts see the rent freeze as part of a larger effort to recalibrate the housing market, ensure social stability, and create a more attractive investment climate. By removing sudden rental shocks, Riyadh hopes to draw new businesses, retain talent, and improve quality of life for its residents. The measure also fits within Saudi Arabia’s long-term vision of balancing rapid urban development with affordability and equitable growth.
