- Riyadh’s flex market is rapidly maturing, capturing the highest share of international occupiers (50%-60%), while new company setups account for 55%-60% of enquiries
Riyadh, KSA; October 2026 – The Middle East and Africa (MEA) flexible workspace market has reached a critical inflection point, according to a new report by JLL, which finds that over 90% of the region’s corporate real estate portfolios remain committed to traditional, long-term leases.
The report titled ‘Middle East & Africa Flexible Workspace Market Report 2026’ calls for an urgent rethink of how commercial real estate stakeholders approach workspace strategy. This is because artificial intelligence and evolving workplace models are creating fundamental uncertainty regarding optimal workforce composition and spatial requirements, making portfolio agility a strategic imperative. Yet, the adoption gap remains stark as fewer than 5% of global corporations allocate more than 10% of their portfolios to flex space, while more than 40% allocate one per cent or less.
Dana Williamson, Head of Offices, Business Space & Retail – MEA at JLL, said: “The flex office sector is evolving, and the combination of a ready, financially stable supply and a growing demand for agility amid AI and evolving business requirements has created a defining moment for the industry. This shift creates opportunities for investors to participate in high-growth segments and for operators to build on compelling returns. As it becomes increasingly difficult for CEOs to predict what effective working habits will look like in three to five years, for corporate occupiers, flexibility becomes a core strategic tool for mitigating risk. How quickly and at what scale they position for this inevitable shift will be key to securing a competitive advantage.”
The report highlights a rapid expansion phase in Riyadh, driven by Saudi Arabia’s Vision 2030 goals for corporate relocations and multinational market entry. Transitioning to an established flex market, Riyadh delivered the majority of its current stock from 2022 onwards. This rapid expansion met with exceptional absorption, resulting in the highest occupancy rates in the region, with occupancy approaching 90% in the Olaya district, while King Abdullah Financial District (KAFD) maintained occupancy in the mid-80% range.
Geographically, the market is consolidating along a primary corridor, with KAFD and Olaya District jointly accounting for nearly half (45%) of the city’s supply. Concentration aligns with corporate location preferences, proximity to government ministries, and infrastructure investment priorities under Vision 2030.
Riyadh’s product mix is balanced, reflecting its current development stage. KAFD shows particularly elevated fixed desk allocation (approximately 55%) alongside substantial private inventory, while Olaya District presents the most diversified offering with the highest proportion of hot desks alongside roughly equal shares of fixed desks and private offices, serving a broader tenant base spanning entrepreneurs, SMEs, and corporate satellite teams with varying workspace requirements. As the market matures, a shift toward private office dominance is likely as operators prioritise revenue optimisation over market share capture across multiple segments.
Vision 2030 is the transformation engine driving Riyadh’s flex sector. This is validated by the market’s tenant profile, where 50%-60% of occupiers are international, the highest proportion in the region. 55%-60% of demand also comes from new company setups, signalling strong entrepreneurial momentum and greenfield market entry.
The JLL report notes that this market evolution validates the structural shift toward flexibility as a permanent corporate workspace strategy, with operators now enhancing meeting capacity and investing in technology to support hybrid work models. In increasingly competitive markets, the differentiation is centred on service excellence, with hospitality-oriented models and superior design quality becoming key to justifying premium positioning.
These market dynamics create distinct opportunities for all stakeholders. Landlords and developers must prioritise partnership structures over direct operations. Management agreements and revenue-share models further protect landlords from operator defaults, maintaining asset control and participation in flexible office revenue streams.
Operators must choose between premium differentiation and volume-based models. While the premium route demands rigorous operational consistency to build competitive barriers through prime locations, superior design, and hospitality-driven service, volume-based strategies focus on accessible pricing and broad geographic reach, trading lower margins for economies of scale. Corporate occupiers are urged to evolve beyond binary traditional-versus-flexible decisions toward an optimised allocation that leverages the distinct advantages of each model.
The MEA flexible office sector is now financially stable, operationally disciplined, and positioned for sustained growth. The transition from a niche accommodation solution to strategic real estate infrastructure will provide the speed, agility, and adaptability that modern business requires in an era of unprecedented workforce uncertainty.
About JLL:
JLL (NYSE: JLL) is a leading global commercial real estate services and investment management company with annual revenue of $26.1 billion, operations in over 80 countries and a global workforce of more than 113,000 as of December 31, 2025. For over 200 years, clients have trusted JLL, a Fortune 500® company, to help them confidently buy, build, occupy, manage and invest across a variety of industries and property types, including office, industrial, hotel, multi-family, retail and data centre properties. Driven by our purpose to shape the future of real estate for a better world, we help our clients, people and communities SEE A BRIGHTER WAY. Powered by rich global datasets and leading technology capabilities, we provide coordinated, end-to-end delivery of real estate services for a broad range of global clients who represent a wide variety of industries. Through LaSalle Investment Management, we invest for clients on a global basis in both private assets and publicly traded real estate securities.
About JLL MEA:
Across the Middle East and Africa (MEA) JLL is a leading player in the real estate and hospitality services markets. The firm has worked in 35 countries across the region and employs over 1800 internationally qualified professionals across its offices in Dubai, Abu Dhabi, Riyadh, Jeddah, Al Khobar, Cairo, Casablanca, Cape Town, Johannesburg and Nairobi.
