International firms make flexible workspace their entry point into a tight Riyadh market

Flexible offices have become the way into Riyadh for international firms. They make up 50-60% of flexible-workspace occupiers in the capital, the highest share anywhere in the Middle East and Africa, and new business setups generate 55-60% of inquiries, according to JLL data (pdf). International firms are around 60% of KAFD tenants and just over 50% in Olaya.

Space is easier to come by here: Flexible occupancy runs close to 90% in Olaya and in the mid-80% range in KAFD, with desks and offices available on monthly terms. Conventional space has almost none to offer — Knight Frank put citywide occupancy across all grades at 96% in 2Q 2026, with Grade A rents up 3.4% y-o-y.

What’s on offer: Most of the capital’s flexible stock has been delivered since 2022, and private offices account for 50-60% of it, with fixed and hot desks making up the rest. Technology, consulting, and professional services are the dominant sectors.

It’s all about planning and risk management: “Flexibility becomes a core strategic tool for mitigating risk,” said Dana Williamson, JLL’s head of offices, business space, and retail for the Middle East and Africa, as CEOs struggle to predict working habits three to five years out.

Supply is incoming, with Knight Frank putting Riyadh’s office stock at 6.1 mn sqm and estimating announced projects could lift it by about 74% to 10.6 mn sqm by 2028.

REMEMBER- Grade A office occupancy in Riyadh stood at 98% as of 1Q 2026, with more than 780 multinational firms now operating regional headquarters in the capital. The premium supply squeeze is forcing tenants to look outside Riyadh. Jeddah’s Grade A occupancy holds a tight 94%, while top-tier assets in Dammam are operating at 91% occupancy, but older Grade B buildings are struggling due to a lack of modern infrastructure.

Riyadh is the outlier, not the trend: More than 90% of corporate real estate portfolios across the wider Middle East and Africa remain on traditional long-term leases, JLL said. Globally, fewer than 5% of companies allocate more than 10% of their portfolios to flexible space, and over 40% allocate 1% or less.

What JLL tells landlords: Private offices should take a larger share of the market as operators move from expansion toward revenue growth. Rather than operating flexible space themselves, landlords and developers should look at management agreements and revenue-sharing partnerships, keeping control of the asset while taking a share of workspace revenues.