Published on and written by Cyril Jarnias
Saudi Arabia is attracting an increasing number of foreign talents. Between the Vision 2030 megaprojects, high salaries, no income tax, and security perceived as very high, the Kingdom has become one of the most dynamic job markets in the Gulf for expatriates. But once the contract is signed, a question quickly arises: which neighborhoods to live in?
The country offers very diverse local realities depending on the city and sector. The choice of where to live is fundamental: one must choose between an “open” neighborhood within the local population or a secure compound, designed for the social life of expatriate families.
This article provides an overview of the most sought-after neighborhoods for expatriates in Saudi Arabia, with a particular focus on Riyadh, Jeddah, and the Eastern Province – notably Dhahran and Al Khobar, at the heart of the oil industry. The figures on rents, cost of living, resident profiles, or commute times come from recent studies and market reports.
What expatriates are looking for: security, community, mobility
Even before naming neighborhoods, it’s important to understand the criteria that consistently appear in expatriate testimonials and real estate studies.
Security tops the list of priorities. Compounds and gated neighborhoods, guarded 24/7, with access control, video surveillance, and patrols, remain the most reassuring choice for families and high-income executives. The Diplomatic Quarter in Riyadh or the large compounds in Al Khobar illustrate this appeal.
In large, sprawling, and car-dependent Saudi cities like Riyadh, proximity to the workplace and international schools is a key quality-of-life factor for reducing commute times. This explains the success of neighborhoods such as Al Olaya, Hittin, or Al Malqa in Riyadh; Al Shati and Al Rawdah in Jeddah; as well as the residential compounds located near Saudi Aramco sites in Dhahran and Al Khobar.
A third recurring criterion: the possibility of maintaining an “international” lifestyle. For many newcomers, the very conservative Saudi culture, the separation of male/female spaces, the prohibition of alcohol, closures during prayers, or the language barrier can be a shock. Compounds offer a buffer zone: a more relaxed dress code, strong foreign communities, recreational facilities, clubs, and activities for children. A number of expatriates report a clear improvement in their mental health and sense of well-being after moving into a well-equipped compound.
Housing costs in Saudi Arabia are a key factor, generally lower than in major Western capitals, except in the most sought-after neighborhoods and compounds where rents compete with major global cities. Expatriates primarily opt for three options: a villa or apartment in a secure compound, a furnished apartment in a central neighborhood, or an independent house/villa in a residential area.
Riyadh: the capital of executives and compounds
The political and economic capital of the country, Riyadh concentrates a good portion of high-income expatriates. The sectors recruiting the most foreigners there are finance, IT, consulting, healthcare, construction, and engineering. Vision 2030 is materializing there through projects like the King Abdullah Financial District (KAFD), New Murabba, or the Sports Boulevard, which are driving the rental market upward.
It is estimated that the northern neighborhoods of Riyadh concentrate over 70% of new residential projects and can have rents 40 to 50% higher than the national average. This is also where a large part of the most sought-after neighborhoods for expatriates are located.
Al Nakheel and Al Yasmin: family favorites
Al Nakheel and Al Yasmin consistently come up when it comes to expatriate families with children. These residential neighborhoods in the north of the city combine accessibility (proximity to major road arteries), a calm atmosphere, and access to international schools.
Al Nakheel is often described as a “village-like” neighborhood in the heart of a metropolis: relatively quiet streets, several parks, modern shopping malls (like Nakheel Mall), private clinics, pharmacies, and supermarkets. Housing options are varied, with villas of different sizes, upscale apartments, and nearby compounds.
Al Yasmin, for its part, offers a fabric of modern houses that are often more affordable than ultra-premium addresses like Hittin or the Diplomatic Quarter. You find large villas with gardens, ideal for families who prefer space over the ostentatious luxury of the most high-end compounds.
A summary comparison allows you to visualize these perceived differences among expatriates:
| Neighborhood | Typical Expatriate Profile | Main Assets | Budget Level (Housing) |
|---|---|---|---|
| Al Nakheel | Families, senior executives | International schools, malls, good connectivity | Medium to High |
| Al Yasmin | Families, young couples | Modern villas, calm atmosphere, good value for money | Medium |
| Al Narjis | Couples, growing families | Rapid development, new projects | Medium to High |
These neighborhoods fall within a rental range aligned with the high end of the national average: for a good quality two-bedroom apartment, market data indicates amounts significantly above the national standard (around 5,000 SAR per month), without reaching the peaks of Hittin or the Diplomatic Quarter.
Diplomatic Quarter and Al Olaya: the international heart
The Diplomatic Quarter (DQ) is in a category of its own. It is a closed, ultra-secure neighborhood grouping embassies, international organizations, and diplomatic residences. For expatriates who have access to it – diplomats, executives of international organizations, certain top leaders of large companies – it is one of the most sought-after addresses in the country. It offers apartments and villas in a green environment, with many parks, walking paths, and sports facilities.
The DQ offers a quasi-“campus” setting: cafes, restaurants, fitness centers, clubs, nearby international schools, and above all a high concentration of foreigners. In return, rents there are among the highest in Riyadh, and supply is limited.
Al Olaya, on the other hand, is the modern economic heart of the city, dominated by office towers and shopping malls. This is where, for example, Kingdom Tower or part of the KAFD are located. Expatriates living there are often young professionals or executives who prioritize proximity to their office and urban life over a “suburban” type residential environment.
In these sectors, the real estate supply primarily consists of apartments and serviced residences, offered at the highest rents in the Saudi market. They are distinguished by greater walkability and immediate access to shops and services such as restaurants, cafes, clinics, and hotels.
The contrast between these two highly sought-after areas becomes clear when comparing them to other popular neighborhoods:
| Neighborhood | Dominant Housing Type | Expatriate Profile | Relative Price Level |
|---|---|---|---|
| Diplomatic Quarter | Villas, apartments in compounds | Diplomats, top executives | Very High |
| Al Olaya | Apartments, serviced residences | Young professionals, executives | High |
| Al Sulimaniyah | More modest apartments | Young professionals, couples | Medium |
Al Sulimaniyah, often mentioned alongside Al Olaya, attracts a younger and middle-income population. Its lively atmosphere, cafes, and restaurants make it an interesting compromise for those who want to stay close to the center without facing the rents of the most upscale addresses.
Al Malqa, Hittin, Al Sahafa: the new high-end north
The neighborhoods of the northern belt – Al Malqa, Hittin, Al Sahafa – embody the new geography of prestige in Riyadh. Recently developed, they feature contemporary villas, new apartment buildings, and closed compounds equipped with recreational facilities.
Hittin is particularly cited as one of the sectors with the highest average rents in the Kingdom. It has a high concentration of executives and affluent families, both Saudi and expatriate, seeking tranquility, spacious villas, and proximity to the new northern business centers.
Al Malqa displays a slightly more mixed profile: many new buildings house couples, young families, and expatriates who want a modern, well-equipped home, without necessarily aiming for the exclusivity of Hittin.
Al Sahafa, finally, is characterized by a varied supply mixing high-end apartments, villas, and structured residential projects, often integrated into commercial complexes. Its commercial dynamism also attracts many expatriates.
Riyadh Compounds: secure villages for expatriates
Beyond the “open” neighborhoods, a significant portion of expatriates in Riyadh choose life in a compound. This model, already well-established in the Kingdom, remains highly sought-after: it combines maximum security, integrated services, and community life.
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– Marvela Community, on King Abdullah Road, with nearly 600 units (apartments and duplexes) and a range of sports and recreational facilities.
– Al Bustan Village, in the north, known for its family-friendly atmosphere, its contemporary villas, wellness services, and highly reinforced security.
– Green City Compound, in a central position, minutes away from iconic towers like Kingdom Tower, with housing ranging from small apartments to spacious villas.
– Other names like Al-Hamra Oasis Village, Arizona Golf Resort, or Kingdom City, which function as true small towns: internal supermarket, clinic, gym, bowling alley, nurseries, transport services, etc.
Rents in these compounds are significantly higher than the “open market” supply. Ranges commonly mentioned are from 120,000 to over 250,000 SAR per year for a three-bedroom villa in a high-end compound, whereas a villa outside a compound can fall well below these levels. Maintenance fees and à la carte services (internet, cleaning, shuttles) are sometimes added on top.
The table below summarizes the major differences in positioning between compounds and open neighborhoods in Riyadh:
| Type of Area | Main Advantages | Frequent Drawbacks | Average Price Level |
|---|---|---|---|
| Compounds (North Riyadh) | Security, amenities, expat community, flexible rules | High cost, waiting lists, social bubble | Very High |
| Open Residential Neighborhoods (Al Nakheel, Al Yasmin, Al Narjis) | Space, villas, proximity to schools, “Saudi” life | Fewer integrated amenities, cultural adaptation needed | Medium to High |
| Central Neighborhoods (Al Olaya, Al Sulimaniyah) | Proximity to offices, cafes, shops | Smaller homes, traffic, high prices | High |
For newcomers, the employer often plays a decisive role: many employers directly negotiate rental contracts in these compounds as part of relocation packages.
Jeddah: coastal vibe and highly sought-after northern neighborhoods
On the Red Sea coast, Jeddah offers a very different atmosphere from Riyadh. The city is reputed to be more relaxed, more cosmopolitan, and oriented towards the sea. It attracts expatriates working in healthcare, engineering, services, education, but also profiles linked to tourism and the development projects of the western coast.
The most in-demand neighborhoods are clearly concentrated in the north of the city, along the coast and near the major shopping malls.
Al Shati, Al Rawdah, Al Muhammadiyah: the winning trio
Al Shati is one of the most sought-after areas for expatriates in the entire Kingdom. Bordering the Jeddah Corniche, this neighborhood benefits from direct access to the sea, landscaped walkways, beaches, and a high concentration of high-end hotels and residences. Rents there are among the highest in Saudi Arabia. It attracts many senior executives, foreign families, and visiting professionals.
This popular expatriate neighborhood offers a central location with quick access to shops, restaurants, private clinics, and several international schools. It is particularly suited for young professionals and families who want to stay close to the city. The real estate supply is varied, but dominated by modern medium-sized apartments.
Al Muhammadiyah completes this trio with a particularly high-end image: luxury villas, modern residences, proximity to major arteries and prestigious shopping centers. Many high-income expatriate families live there, as do wealthy Saudi families.
The positioning differences between these three neighborhoods can be summarized as follows:
| Neighborhood | Key Location | Dominant Profile | Rent Level |
|---|---|---|---|
| Al Shati | Waterfront, Corniche | Affluent families, executives | Very High |
| Al Rawdah | Central, near major arteries | Young professionals, families | High |
| Al Muhammadiyah | Chic north, near malls and schools | High-income families | Very High |
In these areas, the rental market is tight. Studies show that well-positioned properties generally rent within 30 to 45 days, with annual rent growth of around 3 to 6% in the absence of rent control, unlike in Riyadh.
Iconic Compounds of Jeddah
As in Riyadh, a significant portion of Jeddah’s expatriate population lives in compounds. Some complexes have built an international reputation.
The Sharbatly Village covers an area of approximately 500,000 square meters.
Al Basateen Village Compound, often cited as one of the best choices for expatriates in Jeddah, stands out for its strategic location – close to schools, shopping malls, and major road arteries – and a housing offer ranging from spacious apartments to villas. The environment is designed for families, with pools, gyms, and enhanced security.
Al Andalus Compound, on the other hand, focuses on a very “resort” positioning: pools, tennis courts, fitness centers, quick access to restaurants and shopping malls. It attracts varied profiles, with a high proportion of long-term expatriates.
These compounds share recurring characteristics: 24/7 guarding, entry control, complete recreational facilities, convenience stores, sometimes nurseries or schools on-site, shuttles to malls or schools.
The Eastern Province: Dhahran, Al Khobar, and life around oil
In the Eastern Province, expatriates are primarily attracted by the oil and gas industry. The region forms a large conurbation – Greater Dammam – encompassing Dammam, Dhahran, and Al Khobar, with over two million inhabitants. This is where Dhahran is located, the de facto capital of the Kingdom’s oil industry and the global headquarters of Saudi Aramco, the world’s largest oil company.
Dhahran: Saudi Aramco’s company town
Dhahran developed following the discovery of oil in 1938 at the Dammam Dome. Since then, the city has been closely linked to Saudi Aramco, whose headquarters have been located there for nearly 90 years. A large part of Dhahran consists of fenced areas: the Aramco residential camp, air force installations, and the campus of the King Fahd University of Petroleum and Minerals (KFUPM), often nicknamed the “Saudi MIT.”
For expatriates employed by Aramco, the residential camp remains one of the most sought-after places to live in the country. It features schools (Dhahran School, Dhahran Hills School, Dhahran High School for expatriate children), sports facilities, cultural centers, shops, hospitals, all within a strictly controlled and secure perimeter. The term “Aramcons” refers to expatriates living and working in this very particular universe.
In the expatriate imagination, “Dhahran” often refers first and foremost to the Aramco residential compound.
Expatriates
Among the assets cited by foreign residents: a highly structured urban environment, maximum security, a very dense international community (Americans, Europeans, Asians, South Africans, Australians, etc.), international standard schools, and easy access to shopping malls like the Mall of Dhahran, one of the largest in the region.
On the other hand, Dhahran remains a very controlled city, with many checkpoints, special forces based on-site, and a perimeter that can give the feeling of a “bubble” cut off from the rest of the country.
Al Khobar: the coastal city favored by expatriates
Just a few kilometers from Dhahran, Al Khobar offers a different face of the Eastern Province. Located on the Gulf coast, connected to the Kingdom of Bahrain by the spectacular King Fahd Causeway (26 km of bridges), the city has become a magnet for expatriates seeking a more relaxed lifestyle, yet still close to major oil employers.
Al Khobar is a dynamic city of approximately 700,000 inhabitants. It offers a major commercial hub with large centers like Al Rashid Mall and Dhahran Mall, as well as leisure spaces (corniche, parks, nearby beaches, and numerous restaurants). The expatriate community there is very diverse, including many professionals in key sectors such as engineering, construction, finance, IT, hospitality, education, and banking.
Al Khobar is regularly presented as a “top choice” for expatriates: modern infrastructure, an environment considered safe, proximity to Bahrain for weekend outings, a relatively affordable cost of living compared to capitals like Doha or Abu Dhabi, but higher than some neighboring countries like Oman.
One of the most sought-after neighborhoods is Al Rakah, cited in studies as one of the three most popular sectors among expatriates across the entire Kingdom, alongside Al Shati (Jeddah) and the Diplomatic Quarter (Riyadh). It features new buildings, villas, but above all quick access to main road arteries, shopping malls, and the facilities of major companies.
Eurovillage and the major compounds of Al Khobar
In the Eastern Province, compounds hold an even more central place than elsewhere, especially for families attached to the oil industry.
The number of villas in the famous Eurovillage Compound in Al Khobar.
Other names often come up in discussions within expatriate communities: Dana Compound, Nada Compound, Dhahran Tower… All offer that mix of security, services, and community life that is the hallmark of Saudi compounds.
Rents there are logically above the Eastern Province average: national studies indicate that in Greater Dammam, house rents generally range between 3,333 and 10,000 SAR per month and apartments between 1,375 and 3,750 SAR. High-end compounds are rather at the high end of these ranges, or even beyond, especially for large villas.
A summary overview of housing options in the Eastern Province helps situate these products:
| Type of Housing (Eastern Province) | Indicative Monthly Rent Range | Typical Expatriate Profile |
|---|---|---|
| Standard Apartment (DMA) | 1,375 – 3,750 SAR | Young professionals, singles, couples |
| Standard House/Villa (DMA) | 3,333 – 10,000 SAR | Families, middle management |
| Villa in Compound (Al Khobar/Dhahran) | > 10,000 SAR, often per year in a package | Senior executives, Aramco families, expats with housing package |
Beyond housing, the Eastern Province is characterized by an environment perceived as relatively more liberal than some other regions, even though the culture remains based on Islamic law. Shopping malls, the corniche, beaches, and proximity to neighboring countries like Bahrain can contribute to a sense of “breathing space” for foreigners discovering for the first time the rules of Saudi public life (modest dress, absence of alcohol, partial separation of male/female spaces, closure of shops during prayers, modified hours during Ramadan, etc.).
Cost of living and rents: where are the popular neighborhoods situated?
To concretely assess these neighborhoods, one must place their rents in the broader context of housing costs in Saudi Arabia. According to national data, the average rent for a one-bedroom apartment in a major city ranges between 2,500 and 8,000 SAR in the center, and between 2,000 and 4,500 SAR on the outskirts. Three-bedroom apartments can climb from 4,000 to 19,000 SAR in the city center in the chicest sectors.
Al Khobar is estimated to be more than 50% cheaper than cities like New York, London, or Amsterdam.
In parallel, average net incomes are around 8,400 to 11,400 SAR per month, but it should be kept in mind that qualified expatriates, often housed by their employers, frequently exceed these averages. The absence of income tax, company contributions to housing and school fees, and access to private health insurance covered by the employer complete this picture.
The most sought-after neighborhoods and compounds – Diplomatic Quarter, Hittin, Al Shati, Al Muhammadiyah, Al Rakah, Eurovillage, Aramco camp in Dhahran – are positioned at the top of this hierarchy. They concentrate the highest rents in the country, but also the most complete amenities, the strongest security, and the densest expatriate communities.
Compounds vs. “open” neighborhoods: cultural immersion or expat bubble?
A frequent dilemma for newcomers concerns the choice between a compound and a “normal” neighborhood. Compounds appeal with their comfort: maximum security, maintenance of green spaces, pools, tennis, gyms, clubs, cafes, mini-markets, nurseries, and sometimes schools within the enclosure itself. Many studies and testimonials confirm that this formula strongly reduces culture shock and facilitates adaptation, especially for families with children.
Inside residential compounds for expatriates, social rules are relaxed: women are not required to wear an abaya, interactions between men and women are freer, and an active community life is organized with parties, barbecues, book clubs, yoga or language classes. Some residents compare this atmosphere to a vacation village or an international campus.
But this advantage can turn into a drawback: living behind walls, in an essentially foreign environment, limits immersion in Saudi society. Many researchers point out that expatriates confined to these spaces struggle to learn Arabic, make Saudi friends, or truly understand the country’s social and religious codes.
Living in an open neighborhood like Al Nakheel, Al Yasmin, Al Rawdah, Al Rakah, or certain sectors of Dhahran offers a more authentic cultural experience, with local shops, Saudi neighbors, and immersion in local practices (prayer times, Ramadan). However, this involves a longer adaptation period, increased attention to dress code, and potential daily challenges related to language or lack of integrated amenities.
A practical way to summarize this choice is as follows:
| Criterion | Compound (Riyadh, Jeddah, Eastern Province) | Open Neighborhood (Al Nakheel, Al Shati, Al Rakah, etc.) |
|---|---|---|
| Security | Very high, controlled access | High, but more “classic” |
| Cultural Immersion | Low to medium | High |
| Expat Social Life | Very developed, dense community | More diffuse, depends on individual initiatives |
| Housing Cost | Significantly above average | Very variable, more affordable options |
| Adaptation to the Country | Smoother, cultural shock mitigated | More direct, demands more flexibility |
In practice, many families choose a hybrid solution: start their stay in a compound to “settle in” and understand the country, then consider moving to an open neighborhood once they have found their bearings.
International schools, healthcare, transport: the ecosystem of popular neighborhoods
A neighborhood only becomes truly attractive for expatriates if it is part of a complete ecosystem: schools, clinics, shops, leisure, mobility.
In major Saudi urban areas, international schools play a decisive role. Riyadh, Jeddah, and Al Khobar concentrate the majority of institutions offering American, British, IB, German, French, Indian, or Pakistani curricula. In Dhahran and Al Khobar, schools like American School Dhahran or British International School Al-Khobar offer internationally recognized programs, as do schools in the International Schools Group (ISG) or institutions like “British School Dhahran.”
Popular residential neighborhoods (Diplomatic Quarter, Al Nakheel, Al Malqa, Al Shati, Al Muhammadiyah, Al Rakah, Dhahran Camp) are generally located a reasonable distance from schools, thereby limiting children’s commute times. Furthermore, some high-end compounds directly offer a school or nursery within their premises.
In terms of healthcare, the Kingdom’s major cities have high-level private hospitals and clinics, particularly in Riyadh, Jeddah, and the Eastern Province. Expatriates are legally required to have private health insurance, most often provided by their employer. In popular neighborhoods, access to these medical facilities is considered a plus, and some compounds even have internal clinics.
The country is dominated by private cars. Although Riyadh is developing its metro and bus networks exist between major cities, expatriates primarily rely on their personal vehicle, a dedicated driver, or ride-hailing services for their daily commutes.
The most sought-after neighborhoods are therefore also characterized by their accessibility: proximity to fast arteries, reasonable commute times to major employment zones, and the possibility of using shuttle or ride-hailing services without difficulty.
Towards a new map of expatriate neighborhoods
Vision 2030 and the gradual opening of the real estate market to foreigners are redrawing the map of popular neighborhoods. Several major trends are emerging.
First, the accelerated upscaling of certain sectors. In Riyadh, the northern neighborhoods (Hittin, Al Malqa, Al Narjis, Al Sahafa) concentrate the majority of new high-end projects, with a marked increase in price per square meter and rents. In Jeddah, the northern extensions, around Al Shati, Al Zahra, and Al Muhammadiyah, should see their attractiveness and rents continue to rise as new tourism and residential projects materialize on the Red Sea coast.
The Eastern Province is strengthening its attractiveness for expatriates. The cities of Dhahran, Al Khobar, and Dammam, already well-connected to the global economy through the energy sector, are seeing their residential offer improve with higher-standard compounds. Neighborhoods like Al Rakah are now considered among the most appreciated by all expatriates in the Kingdom.
Finally, new hubs are appearing or gaining momentum thanks to the megaprojects: NEOM on the northwestern coast, the new neighborhoods of the capital (New Murabba, King Salman Park District, Diriyah Gate), or the projects on the Red Sea (Red Sea Project, Amaala). Market studies already show that nearly a third of expatriates surveyed wish, in the long term, to own a property there, even though the majority have a budget below 3.5 million riyals for this type of investment.
For expatriates currently on assignment, the residential real estate market will continue to diversify. Choices will expand between next-generation compounds, modernized central urban neighborhoods, and large planned communities integrated into the country’s megaprojects.
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Whether one aims for the glass towers of the Diplomatic Quarter, the quiet streets of Al Nakheel, the seaside villas of Al Shati, the hyper-secure village of Eurovillage in Al Khobar, or the very particular universe of the Aramco camp in Dhahran, a common point connects all these popular neighborhoods: they each, in their own way, embody the meeting point between Saudi Arabia’s rapid transformation and the expectations of professionals from around the world. To choose the right neighborhood, it is not enough to look at rents: one must gauge the desired degree of cultural immersion, tolerance for daily commutes, the family’s needs in terms of schools and leisure, and the importance placed on expatriate community life. It is at this intersection that the “right” neighborhood is drawn, for each profile, in today’s Saudi Arabia.
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Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
