Discover the Best Places to Live in Saudi Arabia

Laurence

September 19, 2023

Discover the Best Places to Live in Saudi Arabia

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Discovering the Best Places to Live in Saudi Arabia

Saudi Arabia, known for its rich cultural heritage and modern infrastructure, offers a variety of cities for potential residents. Riyadh, the bustling capital, is a hub for finance, healthcare, and IT sectors¹. Jeddah, with its coastal charm and historic districts, offers a blend of city and seaside life. Dammam, part of the larger Dhahran-Aramco area, is a hotspot for oil industry professionals.

When choosing a place to live, consider factors like job prospects, cost of living, lifestyle preferences, and proximity to amenities. For instance, while Riyadh offers high salary potential, it also has a higher cost of living compared to smaller cities like Dammam and Khobar.

Living in Saudi Arabia has numerous benefits. The country operates on a tax-free salary system, significantly increasing savings potential. The cost of living is relatively low compared to many Western countries, with affordable housing, food, and healthcare. Furthermore, Saudi Arabia’s strategic location allows for easy travel to various parts of the world².

Opportunities and Risks

Saudi Arabia’s economic landscape, shaped by its vast oil reserves and the Vision 2030 initiative, offers a range of opportunities³. The country is actively diversifying its economy, opening up sectors such as tourism, entertainment, and renewable energy for investment. Dr. Fahad Al-Turki, Chief Economist at Jadwa Investment, highlights this shift, stating, “Saudi Arabia’s push towards non-oil sectors is creating a new wave of investment opportunities.”

However, potential risks accompany these opportunities. The economy’s heavy reliance on oil makes it vulnerable to price fluctuations. Additionally, geopolitical tensions can destabilise the business environment. Dr. Steffen Hertog, a Middle East expert at the London School of Economics, warns, “Investors must navigate Saudi Arabia’s complex political landscape, which can pose significant risks.”⁴

The economic landscape also influences the best places to live. Cities like Riyadh and Jeddah offer numerous job opportunities and a high standard of living, albeit at a higher cost. Conversely, smaller cities like Khobar provide a lower cost of living but may have fewer job opportunities.

Benefits and Challenges

Living in Saudi Arabia offers a unique blend of cultural richness and social cohesion⁵. The country’s deep-rooted traditions and Islamic heritage provide a strong sense of identity and community, known for its hospitality, safety, and strong family ties. However, the conservative nature of Saudi society can pose challenges, particularly for expatriates. Strict adherence to cultural norms and religious doctrines may feel restrictive, with conservative dress codes and gender segregation rules in many public spaces.

The language barrier can also be a hurdle for non-Arabic speakers, despite English being widely spoken in business settings. The cultural and social landscape of Saudi Arabia intersects with the economic opportunities in the region, particularly with the Vision 2030 initiative. This initiative, aimed at diversifying the economy, has led to an influx of foreign investment and job opportunities in sectors such as technology, tourism, and entertainment⁶. However, the ‘Saudization’ policy may limit opportunities for expatriates, as companies are encouraged to prioritise hiring Saudi nationals. Navigating these opportunities requires a deep understanding of the local culture and customs.

Benefits and Challenges

Living in Saudi Arabia offers a unique blend of political and legal benefits and challenges, deeply intertwined with the nation’s cultural and social fabric. The monarchy system provides stability and security, contributing to a high standard of living⁷. The legal framework, based on Sharia law, ensures a low crime rate and a clear moral and ethical framework. However, the strict interpretation of Sharia law can pose challenges, particularly for foreigners unfamiliar with its nuances.

The political benefits stem from the monarchy system, which provides a stable political environment, facilitating economic growth, with Saudi Arabia boasting the largest economy in the Middle East⁸. However, the lack of political pluralism and limited freedom of speech are significant challenges.

The political and legal framework significantly impacts the cultural and social aspects of life in Saudi Arabia. The monarchy’s conservative interpretation of Islam shapes societal norms, influencing behaviour and interactions. However, recent reforms, such as allowing women to drive and attend public events, indicate a gradual shift towards modernization. These changes reflect the government’s efforts to balance preserving cultural heritage with adapting to global trends.

The legal framework also has implications for gender equality and human rights. Women and minority groups often face restrictions on their rights and freedoms. However, recent reforms have aimed to improve women’s status and promote greater inclusivity. The government’s Vision 2030 initiative, which seeks to diversify the economy and society, indicates a commitment to social progress.

A Key Consideration

Saudi Arabia’s infrastructure development has been instrumental in enhancing the quality of life for its citizens⁹. The manifold benefits range from modern highways and airports to advanced healthcare facilities and educational institutions. As urban planner Dr. Abdulaziz Al-Ajlan notes, “The extensive road, rail, and air networks have significantly reduced travel times, facilitating commerce and improving accessibility to services.”

The infrastructure growth is not just about physical structures but also about providing services that enhance the quality of life. For instance, the expansion of public transportation reduces traffic congestion, making daily commutes easier. Improved water and electricity networks ensure reliable services to homes and businesses.

The infrastructure benefits are closely tied to the country’s political and legal framework. The government’s Vision 2030 plan, aimed at diversifying the economy and developing public service sectors, plays a crucial role in driving infrastructure development¹⁰. The legal framework in Saudi Arabia supports these infrastructure projects by providing clear regulations and procedures, ensuring transparency and attracting foreign investment.

Opportunities for NonSaudis

The recent amendments in Saudi Arabia’s laws have opened the door for non-Saudis to own and invest in real estate, a move aligned with the Vision 2030 initiative¹¹. This change brings a host of benefits, including an influx of foreign capital, which can be channelled into infrastructure projects such as the $500 billion NEOM city project. This not only increases the value of nearby properties but also creates new investment opportunities.

Non-Saudi investment also stimulates the construction industry, contributing to job creation and economic growth. An example is the King Abdullah Economic City, largely financed by foreign investors, which has generated employment for thousands.

Moreover, foreign investors often introduce innovative ideas and technologies, leading to modern, sustainable infrastructure. The Riyadh Metro project, partly funded by foreign investment, has significantly improved city transportation.

However, it’s worth noting that non-Saudis cannot own property in the holy cities of Mecca and Medina¹². Despite this, the robust real estate sector in Saudi Arabia, coupled with government incentives like tax benefits, presents a promising landscape for non-Saudi investors.

Strong Roots and Fulfilling Lives

Saudi Arabia’s vibrant society is a unique blend of rich cultural heritage and rapid modernization. This fusion of tradition and innovation creates a fulfilling lifestyle, with the Kingdom ranking 28th globally in the 2020 Social Progress Index¹³. Residents enjoy numerous benefits such as access to quality education and healthcare, contributing to a high standard of living. The thriving job market offers ample opportunities for personal and professional growth, further enhancing life satisfaction.

This vibrant society significantly influences real estate ownership and investment. The real estate sector, contributing 5% to Saudi Arabia’s GDP¹⁴, is buoyed by a growing population and increasing urbanisation. Government initiatives like the Vision 2030, aimed at achieving 70% homeownership by 2030, stimulate the residential real estate market. The rise in tourism, driven by initiatives like ‘Visit Saudi’, boosts demand in the hospitality and retail real estate sectors, making Saudi Arabia an attractive market for investors.

Education and Healthcare

Living in a society with a robust education system and a strong healthcare system offers numerous advantages. A well-rounded education system equips individuals with knowledge, critical thinking skills, and fosters a culture of innovation. According to the World Bank, each additional year of schooling raises average annual gross domestic product (GDP) growth by 0.37%¹⁵. This not only enhances individual opportunities but also promotes social mobility and reduces income inequality.

Similarly, a strong healthcare system ensures that every individual, regardless of their socio-economic status, has access to quality healthcare services. This not only improves the overall health and longevity of the population but also reduces the financial burden of medical expenses on families. Countries with strong healthcare systems have up to 50% higher worker productivity, as reported by the World Health organisation¹⁶.

Together, a strong education system and a robust healthcare system contribute to a vibrant society by nurturing well-rounded individuals who are intellectually capable and physically healthy. They foster an environment where individuals can thrive, innovate, and contribute to societal progress. As Nobel laureate economist James Heckman notes, “Investments in quality education and healthcare are the most effective ways to foster a productive and prosperous society.”

Rewarding Opportunities

Saudi Arabia, the Middle East’s largest economy, presents a myriad of economic opportunities across diverse sectors¹⁷. The thriving economy, primarily fuelled by the oil and gas industry, has established robust foundations for growth and development. The government’s Vision 2030 initiative is a testament to this, aiming to diversify the economy and reduce oil dependence, thus paving the way for innovation and investment.

The economic landscape is vast, with sectors like tourism, entertainment, and renewable energy witnessing significant growth. This expansion has attracted both domestic and foreign investors, creating job opportunities and driving economic diversification. For instance, the tourism sector has seen a surge in investment, leading to the opening of new hotels and resorts, boosting the economy and enriching the country’s cultural and social fabric.

The economic prosperity has also influenced the best places to live in Saudi Arabia. Cities like Riyadh and Jeddah, the country’s economic powerhouses, offer a high standard of living, modern amenities, and services. The government’s investment in infrastructure projects, such as the Riyadh Metro and the King Abdullah Financial District, has further enhanced the quality of life in these cities. The economic transformation has also led to the development of new cities like NEOM, a $500 billion mega-city project, set to become a global hub for trade and innovation¹⁸. This city, powered by renewable energy and advanced technologies, is expected to offer unparalleled living standards, further contributing to Saudi Arabia’s appeal as a place to live and work.

Impact on Decision Making

Saudi Arabia’s institutional culture, deeply rooted in tradition, religion, and hierarchy, significantly shapes decision-making processes within organisations¹⁹. This culture emphasises hierarchy, consensus, and respect for authority, centralising decision-making at the top levels. While this approach ensures efficiency and coordination, it may limit diverse perspectives and critical thinking. Consensus-based decision-making, another key aspect of the Saudi institutional culture, promotes harmony but may slow down decision-making processes.

The Saudi institutional culture has significantly contributed to the country’s thriving economy. The centralised decision-making process allows for a coordinated economic strategy, ensuring stability and continuity. The emphasis on consensus helps maintain social harmony, reducing the risk of conflicts that could disrupt economic growth.

Saudi Arabia’s Vision 2030 initiative exemplifies the effectiveness of the institutional culture in driving economic transformation. The top-down decision-making approach and emphasis on consensus have facilitated the implementation of bold economic reforms. Data from the General Authority for Statistics in Saudi Arabia indicates a steady increase in GDP, reflecting the positive impact of the institutional culture on the economy. The country’s GDP grew from SAR 2.4 trillion in 2010 to SAR 2.9 trillion in 2019²⁰.

Choosing the Best Place to Live in Saudi Arabia

Choosing the best place to live in Saudi Arabia is a decision influenced by a variety of factors, including economic opportunities, cultural aspects, and personal preferences. For instance, Riyadh, the capital, offers a dynamic business environment with numerous job prospects in sectors such as finance, healthcare, and technology²¹. Conversely, Jeddah, known for its stunning coastline and vibrant art scene, provides a more relaxed lifestyle with ample opportunities in the tourism industry.

A thematic analysis can be a useful tool in this decision-making process. By examining trends in job markets, cost of living, lifestyle preferences, and cultural compatibility, individuals can make an informed choice. For example, if you’re in the tech industry, cities like Riyadh with a thriving tech scene might be a suitable option.

In essence, the best place to live in Saudi Arabia is largely dependent on individual preferences and career goals. Whether it’s the bustling economic activity of Riyadh, the relaxed coastal ambiance of Jeddah, or the energy opportunities in the Eastern Province, each region offers unique advantages that cater to different needs and aspirations.