RIYADH: International companies and newly established businesses are driving demand for flexible offices in Saudi Arabia’s capital, with occupancy in the central Olaya district approaching 90 percent, according to JLL’s Middle East & Africa Flexible Workspace Market Report 2026.
Occupancy in King Abdullah Financial District, or KAFD, stood in the mid-80 percent range. Together, the two districts represent approximately 45 percent of Riyadh’s flexible workspace supply, highlighting the concentration of activity in established business locations.
International Companies Lead Demand
International firms account for between 50 and 60 percent of Riyadh’s flexible office occupiers, the highest proportion across the Middle East and Africa markets covered by JLL.
New company setups also generate approximately 55 to 60 percent of enquiries, indicating that businesses establishing their presence in the capital are an important source of demand.
Most of Riyadh’s current flexible workspace inventory has been delivered since 2022. JLL linked this expansion to Saudi Arabia’s corporate relocation policies and economic reforms, which have encouraged multinational businesses to establish operations in the Kingdom.
Different Office Formats Serve Different Businesses
Riyadh’s flexible office market offers a combination of shared desks, dedicated workstations and private offices.
In KAFD, fixed desks account for approximately 55 percent of the workspace mix, alongside a substantial private office offering. Olaya has a broader mix, including a larger proportion of hot desks and roughly equal shares of fixed desks and private offices.
These formats accommodate entrepreneurs, small and medium-sized enterprises, and corporate teams with different space requirements. JLL expects private offices to gain a larger market share as operators increasingly focus on revenue growth.
Flexibility Becomes Part of Corporate Planning
The demand for adaptable offices comes as companies face greater uncertainty over future staffing levels and working arrangements.
According to JLL, changing workplace models and the growing use of artificial intelligence are making long-term space requirements harder to predict.
Dana Williamson, JLL’s head of offices, business space and retail for the Middle East and Africa, said flexible accommodation is becoming an important tool for managing that uncertainty.
Operators are also investing in meeting facilities, technology and hospitality services to support hybrid working and improve the workplace experience.
Opportunities for Property Owners
The expansion presents opportunities for landlords and developers seeking exposure to the flexible workspace sector.
JLL recommended management agreements and revenue-sharing partnerships as alternatives to operating flexible offices directly. Such arrangements allow property owners to retain control of their buildings while participating in workspace income.
Competition is also encouraging operators to distinguish their locations through design, service quality and facilities, rather than relying solely on the availability of desks.
Traditional Leases Still Dominate
Despite growing interest, flexible offices remain a relatively small component of corporate property portfolios.
JLL found that more than 90 percent of corporate real estate portfolios across the Middle East and Africa remain committed to traditional long-term leases. Globally, fewer than 5 percent of companies allocate more than a tenth of their portfolios to flexible space.
Riyadh’s high occupancy levels therefore sit alongside a wider market where conventional leasing continues to dominate. For workspace operators, future growth will depend on converting demand for adaptability into sustained occupancy and commercially viable services.
