This surge is largely attributed to Madinah's comprehensive infrastructure, which encompasses three airports, an extensive highway system connecting five regions, the Haramain High-Speed Railway, and two major ports—one commercial and one industrial. These facilities facilitated nearly $1.1 billion in non-oil exports and over $1.4 billion in imports in 2021.
The broader economy of Madinah has also witnessed robust growth. The hotel industry reported a 42 percent annual increase in 2024, while tourism-related enterprises, such as organized travel services, expanded by 33 percent. The technology sector is not far behind, with computer programming services growing by 28 percent, and the date processing industry—including drying, packaging, and manufacturing—experiencing a 14 percent year-on-year rise.
Consumer spending patterns reflect this economic vitality. Point-of-sale transactions in the region amounted to SR536.89 million in the week ending February 22, indicating steady retail expansion and stable inflation rates.
The Madinah Region Development Authority has reported enhancements in quality of life, economic advancement, and cultural projects. Notably, the region secured the 88th spot globally in Euromonitor International's 2024 Top 100 City Destinations Index and ranked seventh in the Tourism Performance Index, with 3,200 sites listed in the National Urban Heritage Register.
In alignment with Saudi Arabia's Vision 2030, which aims to transform Madinah into a pivotal investment and cultural center, the government has relaxed restrictions on foreign real estate investments. International investors are now permitted to acquire shares in Saudi-listed companies owning properties in Makkah and Madinah, a move anticipated to attract additional capital to the region.
Digital transformation initiatives are also gaining momentum. The Al-Madinah Smart City project advanced 11 positions in the International Institute for Management Development's Smart City Index, ranking 74th globally, up from 85th in 2023.
Further emphasizing the region's economic dynamism, the Madinah Chamber of Commerce and Industry reported an 8.6 percent increase in active commercial registrations, totaling 61,833 by the end of the second quarter of 2024. This growth is primarily driven by the transportation and construction sectors, which saw expansions of 19.1 percent and 18.8 percent, respectively. The mining sector also demonstrated notable progress with a 12.7 percent growth rate, aligning with the Kingdom's broader strategy to diversify its economy through the development of mineral resources.
Labor market trends reveal that Madinah ranks fifth among Saudi Arabia's regions in terms of total employment, with 443,487 individuals employed, representing 3.5 percent of the Kingdom's workforce. Notably, 84.5 percent of these jobs are in the private sector. By the end of the first quarter of 2024, 89,512 Saudi nationals were employed in the private sector, pushing the Saudization rate to 23.9 percent—a slight increase from previous quarters.
Real estate and consumer markets have also shown stability. The Real Estate Price Index in Madinah exhibited a modest increase of 0.07 percent in the first quarter of 2024 compared to the last quarter of 2023, indicating a stable property market. Meanwhile, the Consumer Price Index rose by 1.48 percent in May compared to the same month in 2023, reflecting the impact of inflation on the cost of living.