Quick Summary: KAFD is Riyadh's premier Grade A office destination, home to multinational headquarters, financial institutions, and government entities. Availability is limited—25+ towers are fully committed. Rental rates range from SAR 2,000 to SAR 3,500/sqm/year, the highest in the Kingdom.
What is KAFD?
King Abdullah Financial District is a purpose-built business district in northern Riyadh, developed by the Public Investment Fund (PIF). It spans 1.6 million sqm and includes:
- 94 towers (office, residential, hotel)
- Grade A office space built to international standards
- Metro connectivity (Yellow Line stations)
- On-site amenities: retail, dining, hotels, conference facilities
- Smart city infrastructure
KAFD positions itself as Saudi Arabia's answer to Dubai International Financial Centre (DIFC).
Who is in KAFD?
Current and committed tenants include:
- Financial institutions (major Saudi and international banks)
- Consulting firms (global management consultancies)
- Technology companies (regional headquarters)
- Energy companies (major oil & gas firms)
- Government-linked entities (PIF-related organizations)
- Professional services (law firms, accounting firms)
Many international companies chose KAFD to establish Saudi regional headquarters in compliance with the RHQ mandate.
Current Availability (2026)
| Category | Availability |
|---|---|
| Small suites (<300 sqm) | Very limited to none |
| Mid-size (300-1,000 sqm) | Limited; waiting lists common |
| Full floors (1,000+ sqm) | Some availability in newer towers |
| Build-to-suit | Possible in future phases |
Realistic timeline: Companies should begin their KAFD search 6-12 months before intended occupancy.
KAFD Rental Rates
| Space Type | Typical Range (SAR/sqm/year) |
|---|---|
| Standard office | 2,000 – 2,800 |
| Premium floors (high rise, views) | 2,800 – 3,500 |
| Penthouse/top floors | 3,500+ |
Service charges: Additional 15-25% (approximately SAR 350-500/sqm/year)
Total occupancy cost: SAR 2,350 – 4,000/sqm/year
Example Calculation
1,000 sqm office at SAR 2,500/sqm + 20% service charge
Total: SAR 3,000,000/year (SAR 250,000/month)
Pros and Cons of KAFD
Advantages
- Prestige address — Signals success to clients and partners
- Grade A specifications — Modern infrastructure, reliable power
- Tenant mix — Surrounded by leading companies
- Metro access — Yellow Line stations within the district
- Amenities — Retail, restaurants, hotels on-site
- Security — Controlled access, professional management
Disadvantages
- Cost — 40-80% premium over other Riyadh districts
- Availability — Limited options, especially for smaller requirements
- Location — Northern location may be far from some residential areas
- Parking — Can be challenging during peak hours
- Ongoing construction — Some phases still under development
Who Should Choose KAFD?
KAFD is ideal for:
- Financial institutions where address matters
- Consulting firms serving Fortune 500 clients
- Regional headquarters of multinational companies
- Companies where client-facing presence is business-critical
KAFD may not be right for:
- Cost-sensitive businesses
- Companies with workforce in southern Riyadh
- Back-office or operations-focused functions
- Startups testing the market
Alternatives to KAFD
| Alternative | Why Consider | Trade-off |
|---|---|---|
| Olaya (prime towers) | Established CBD, good Grade A options | 20-40% cheaper than KAFD |
| Diplomatic Quarter | Prestige address, green environment | Limited inventory |
| Al Sahafa | Modern buildings, value pricing | Less prestige |
| King Fahd Road towers | Central, accessible | Varies by building quality |
Recommendation: Don't fixate on KAFD if it doesn't fit your budget or timeline. Several Olaya towers offer excellent specifications at meaningful savings. See pricing comparison across districts.
How to Secure Space in KAFD
1. Start Early
Begin your search 6-12 months before intended move.
2. Be Flexible on Size
If your ideal size isn't available, consider taking slightly more or less space.
3. Consider Pre-Commitment
For buildings under construction, early commitment may secure better terms.
4. Have Alternatives Ready
Don't negotiate with only one option. Having credible alternatives strengthens your position.
5. Work with a Tenant Advisor
Local relationships help access off-market opportunities.
KAFD Lease Terms
Typical structure:
- Lease term: 5-10 years (shorter terms difficult to secure)
- Payment: Annual or semi-annual
- Escalations: 3-5% annually
- Security deposit: 2-3 months
- Fit-out: Tenant responsibility (shell delivery typical)
What to negotiate:
- Rent-free period for fit-out (2-4 months achievable)
- Landlord contribution to fit-out (for larger tenants)
- Escalation caps
- Expansion options
Getting to KAFD
Metro: Yellow Line (KAFD Station)
By car: Northern Ring Road, King Fahd Road access
Distance from:
- King Khalid Airport: ~25 minutes
- Central Riyadh (Olaya): ~15-20 minutes
- Diplomatic Quarter: ~15 minutes
FAQ: KAFD Office Space
Is there any small office space available in KAFD?
Very limited. Suites under 300 sqm are scarce. Consider serviced offices in KAFD for small requirements, or look at alternative districts.
Can startups lease in KAFD?
Difficult due to minimum sizes and tenant vetting. Serviced offices or co-working in KAFD may be options.
How long does it take to move into KAFD?
From starting search to occupancy: typically 6-12 months. Add 2-4 months for fit-out.
Is KAFD fully built?
No. Some towers are still under construction. This creates opportunities for pre-commitment in upcoming buildings.
What's the difference between KAFD towers?
Towers vary in floor plate size, landlord, building management quality, and amenities. A tenant advisor can help navigate the differences.
How SAT Real Estate Services Helps
SAT is a tenant-focused commercial real estate advisory firm headquartered in Riyadh. We represent companies seeking space in KAFD and can help you:
- Assess current availability across KAFD towers
- Benchmark pricing against market rates
- Identify alternatives if KAFD doesn't fit
- Negotiate terms for better outcomes
