This study investigates the processes leading to karst development in the southeastern part of Riyadh city extending up to Al Kharj. Numerous solution features such as sinkholes, collapsed dolines, and solution caverns are common in the area. The role of water in the development of the karst features was investigated using an integrated geological and hydrochemical approach. Geological investigations included the petrographic analysis of rock samples collected from zones of intense karstification with special emphasis on mineral dissolution. The study showed that the Sulaiy Formation is commonly fractured, brecciated, foliated, and contains numerous cavities, vugs, and openings. These features have formed by mineral dissolution by circulating groundwater, which has removed anhydrite beds from the underlying Arab–Hith sequence. Karstification likely started from the tectonically weak zones when there was more groundwater recharge. Studies show that during the early to mid-Holocene period, the climate in the Arabian Peninsula was humid, promoting groundwater recharge and subsequent mineral dissolution, though the process of karstification must have started much earlier. Hydrochemical findings reveal that mineral dissolution (halite and calcium sulfate) is the main process affecting groundwater chemistry. The Piper plot revealed two main hydrochemical facies: the (Ca2+ + Mg2+)–(Cl+ SO42−) Type (Type A) and the (Na+ + K+)–(SO42− + Cl) Type (Type B). Most of the samples belong to Type B, typical of groundwater facies affected by dissolution of halite and anhydrite mineral. The absence of the (Ca2+ + Mg2+)–(CO32− + HCO3−) type of groundwater facies indicates a lack of recent groundwater recharge and the removal of carbonate minerals from the system through precipitation, as evidenced by the saturation indices. Plots of the major ionic pairs (cations vs. anions) in groundwater indicate strong halite and gypsum/anhydrite dissolution. Of the three carbonate minerals, calcite has the highest average saturation index followed by aragonite and dolomite. This suggests significant past rock–water interaction leading to carbonate dissolution. Presently, any additional calcium or carbonate ions introduced into the water lead to calcite precipitation. The study indicates that the process of karst development may not be active today. Currently, groundwater chemistry is mainly influenced by rock–water interaction leading to gypsum/anhydrite dissolution, which has resulted in a high concentration of Na+, Ca2+, Cl− and SO42− ions in groundwater. The dissolution of gypsum and halite from the Hith Formation weakens the structural integrity of the overlying Sulaiy Formation, creating large underground cavities. These cavities increase the risk of roof collapse, leading to cover-collapse sinkholes as the roof becomes too thin to support the weight above.