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RIYADH: ������Ƶ is set to see lifestyle retail space in Riyadh and Jeddah expand by almost 600,000 sq. meters to 1.31 million sq. meters by 2027, reinforcing its global shopping destination ambitions. 

A new report by real estate consultancy Knight Frank showed that consumer preferences are shifting from traditional malls to mixed-use destinations blending shopping with entertainment, dining, and cultural experiences. 

The expansion coincides with the Kingdom’s plan to attract 150 million tourists annually by 2030, up from an earlier target of 100 million, spurring international brands to enter the market. 

The Real Estate General Authority projects the sector will reach $101.62 billion by 2029, supported by a compound annual growth rate of 8 percent from 2024. 

“In response to this shifting consumer behavior, lifestyle retail destinations have emerged as a much more popular choice,” said Faisal Durrani, partner – head of research for Middle East and Africa at Knight Frank. 
 
“These locations offer a combination of exciting retail, placemaking and immersive experiences that attract visitors not only for shopping but for socializing, entertainment and events,” he added.
 
With dining, outdoor spaces, art installations and interactive exhibits, Durrani said lifestyle destinations have evolved beyond malls into “vibrant community hubs.” 

In July, credit rating agency S&P Global echoed similar views, saying that international retail brands attracted by ������Ƶ’s social and economic shifts are set to fuel real estate sector growth. 

S&P added that the Kingdom’s retail real estate sector has strong prospects, provided careful planning and market positioning are applied, helping mall owners secure long-term success. 

Riyadh leads the way 

Knight Frank said lifestyle retail space in Riyadh is projected to grow from 484,900 sq. meters to 871,200 sq. meters by 2027, driven by 12 upcoming projects, raising the total number of developments in the city to 39. 

The completion of the Al-Hamra development will add 89,230 sq. meters, offering a mix of high-end retail, dining and entertainment in a pedestrian-friendly environment. 

Riyamarche will provide a further 21,840 sq. meters, while The Bellvue project, widely touted as Riyadh’s largest master-planned mixed-use project, will add 90,000 sq. meters by 2027. 

The report said Riyadh’s lifestyle retail market demonstrates robust fundamentals, with overall occupancy at 97 percent and food and beverage units averaging 76 percent. 

Average lease rates currently stand at SR2,400 ($639.57) per sq. meter, underscoring strong demand for quality retail space in the capital. 

“The lifestyle retail scene in ������Ƶ continues to expand, boosted by overall consumer spending, which has increased by 7 percent year-on-year to SR1.4 trillion,” said Jonathan Pagett, partner – head of retail advisory, MENA at Knight Frank. 
 
“Riyadh is at the forefront of this retail resurgence, with all of the city’s flagship lifestyle developments at 100 percent occupancy or very close to it,” he added. 

Pagett said this robust growth is expected to continue, as ������Ƶ attracts leading global brands and taps the spending power of both tourists and residents. 

“However, competition is fierce across the Kingdom, with a strong pipeline of projects in Riyadh, Jeddah and Al-Khobar. Creating unique retail offers with new-to-market concepts is critical to maintain strong performance and high retail sales densities,” added Pagget. 

S&P Global has also raised concerns that oversupply, particularly in shopping malls, could weigh on the sector. 

Knight Frank underscored the importance of food and beverage in driving growth, pointing to the Dior Cafe pop-up in Riyadh and Ralph’s Coffee in King Abdullah Financial District as milestones in the Kingdom’s luxury retail and dining market. 

“With the luxury retail and hospitality sectors flourishing, the Kingdom is fast becoming a key location for global brands seeking to establish a footprint in the Middle East. The combination of iconic retail outlets, high-end dining, and experiential venues puts ������Ƶ firmly on the map as a leader in lifestyle retail,” said Konstantinos Papadakis, associate partner – F&B consultancy, MENA at Knight Frank. 

Papadakis added that the arrival of luxury-branded cafes aligns with Vision 2030, which aims to position ������Ƶ as a global tourist destination by the end of the decade. 

Jeddah’s rising market 

Jeddah added 24,100 sq. meters to its lifestyle retail market last year, increasing total completed space to 233,400 sq. meters across 17 developments. 

A further 205,600 sq. meters are expected to be delivered by seven new projects, bringing the total supply to 439,000 sq. meters by 2027. 

Knight Frank further projected that Jeddah Cove Waterfront, due for completion by 2027, will contribute 70,000 sq. meters as part of a larger 127,000 sq. meters lifestyle destination featuring dining, more than 200 shops, a cinema and a marina overlooking the Formula 1 circuit. 

“With its enviable position on the Red Sea, Jeddah is a rising luxury and leisure hub that is ideally positioned to meet growing demand for lifestyle destinations and to attract international visitors,” said Amar Hussain, associate partner – research, MENA at Knight Frank. 

Hussain added that Jeddah’s lifestyle retail sector enjoys a strong average lease rate of SR2,200 per sq. meter and overall occupancy stands at 81 percent, with F&B units averaging 75 percent occupancy. 

“Mirroring global trends, Jeddah’s consumers are demanding environments that offer experiential retail, integrating shopping with entertainment and dining. This shift is driving the development of lifestyle retail centers focused on offering leisure opportunities, predominantly through new and unique F&B concepts,” said Papadakis. 

RIYADH: Egypt has announced offering 1,386 fully serviced industrial plots across 23 governorates and 35 industrial zones, totaling 6.8 million sq. meters, in a bid to accelerate industrial development and attract local and foreign investment. 
The offering, part of the government’s 11th industrial land tender, will be conducted via the country’s digital platform from Sept. 1-11, the Ministry of Industry and Transport said in an official Facebook post. 
Plot sizes range from 240 sq. meters to 500,000 sq. meters and cover sectors including food, pharmaceuticals, and chemicals, as well as engineering, medical supplies, building materials, and textiles. 
The initiative underscores the state’s commitment to local production and sustainable industrial growth, coinciding with rising confidence in the Egyptian pound, with Standard Chartered noting in August that at least half of $12.5 billion in investment pledges from Qatar and Kuwait is expected to be disbursed by the end of 2025. 
“The tender is designed to provide flexible options for investors,” Kamel El-Wazir, deputy prime minister for industrial development and minister of industry and transport, said in the Facebook post. “We continue to create an attractive and transparent environment to support sustainable industrial growth across Egypt.” 
He highlighted the diversity of plot sizes to suit projects of all scales — small, medium, and large — ranging from 240 sq. meters to 500,000 sq. meters. 
The plots are offered at the actual cost of utilities to facilitate investor access and reduce financial burdens. Annual usufruct fees are set at 5 percent of the ownership price per sq. meter. 
Investors may apply for two opportunities, one as a primary choice and another as an alternative, providing flexibility and broader access. Allocation priority will go to applicants who previously submitted valid proposals but were unsuccessful and did not reclaim their deposits. 
El-Wazir noted that the offering is supported by unprecedented incentives from previous rounds, including a 50 percent discount on application study fees, removal of bid and financial guarantee charges, a reduced deposit of 10 percent of land value, and a simplified feasibility study form, all designed to encourage broader investor participation. 
Following application submission, the Industrial Development Authority will evaluate all entries and announce results within two weeks of the tender’s closing date.