Active restoration structures such as microtopographic water-harvesting designs are widely implemented in dryland ecosystems to improve soil moisture, reduce erosion, and promote vegetation recovery. We assessed the combined effects of planted species identity, planting diversity (mono-, bi- and multi-species mixtures), and micro-catchment (half-moon) structures on seedling performance and spontaneous natural regeneration in a hyper-arid restoration pilot site in Sharaan National Park, northwest Saudi Arabia. Thirteen native plant species, of which four-Ochradenus baccatus, Haloxylon persicum, Haloxylon salicornicum, and Acacia gerrardii-formed the dominant planted treatments, were established in 18 half-moons and monitored for survival, growth, and natural recruitment. Seedling survival after 20 months differed significantly among planting treatments, increasing from 58% in mono-plantings to 69% in bi-plantings and 82% in multi-plantings (binomial GLMM, p < 0.001), indicating a positive effect of planting diversity on establishment. Growth traits (height, collar diameter, and crown dimensions) were synthesized into an Overall Growth Index (OGI) and an entropy-weighted OGI (EW-OGI). Mixed-effects models revealed strong species effects on both indices (F-12,F-369 approximate to 7.2, p < 0.001), with O. baccatus and H. persicum outperforming other taxa and cluster analysis separating "fast expanders", "moderate growers", and "decliners". Trait-based modeling showed that lateral crown expansion was the main driver of overall performance, whereas stem thickening and fruit production contributed little. Between 2022 and 2024, half-moon soils exhibited reduced electrical conductivity and exchangeable Na, higher organic carbon, and doubled available P, consistent with emerging positive soil-plant feedbacks. Spontaneous recruits were dominated by perennials (approximate to 67% of richness), with perennial dominance increasing from mono- to multi-plantings, although Shannon diversity differences among treatments were small and non-significant. The correlation between OGI and spontaneous richness was positive but weak (r = 0.29, p = 0.25), yet plots dominated by O. baccatus hosted nearly two additional spontaneous species relative to other plantings, highlighting its strong facilitative role. Overall, our results show that half-moon micro-catchments, especially when combined with functionally diverse native plantings, can simultaneously improve soil properties and promote biotic facilitation, fostering a transition from active intervention to passive, self-sustaining restoration in hyper-arid environments.