Page 46 - March 2023 #179

VOYAGER - KSA & GIGA-PROJECTS

Signs of a Strong Recovery

Last year was a positive one for the Kingdom of Saudi Arabia as its retail sector highlighted that it was
recovering well after some difficult times. Combined with the fact its real estate market is expected to register
a compound annual growth rate (CAGR) of almost ten per cent during 2022-2027 and the future is looking
good for the Kingdom. Here, RLI takes a look at a selection of retail real estate schemes that are ensuring a
return to pre-pandemic times and those that are aiming to make the future even brighter.

audi Arabia’s retail sector saw an increase in space and a strong Projects Across the Kingdom of Saudi Arabia
recovery in domestic demand during the first half of 2022 as Shumoul Holding Co. (Shumoul), a subsidiary which is 55 per cent
Spandemic restrictions have eased, a report by the real estate owned by Kuwaiti developer Mabanee and 45 per cent owned by Al
management firm JLL showed. Fozan Holding, is undertaking the construction of a mixed-use complex
Relaxations in Covid-19 restrictions have triggered a recovery in in Riyadh, Saudi Arabia. The project involves the construction of 1.7
domestic demand for retail in Saudi Arabia, which has led to a significant million square metre mixed-use complex on a 390,000sq m area and
increase in retail space in the Kingdom. Riyadh currently has 3.3 million being developed in multiple phases. The project includes the construction
square metres of retail area, followed by Jeddah, which went from of a shopping mall, a five-star hotel and a four-star hotel both consisting
16,000 to 1.7 million square metres and Makkah, which increased from a total of 500 rooms, the residential building comprising 1,050 units,
17,500 to 1.4 million square metres in the first six months of 2022. With medical building including 240 medical clinics, office space, commercial
lesser travel restrictions, Saudi Arabia is expected to meet its goal of facilities, 18,000 vehicle parking spaces and related facilities. The first
attracting 12 million foreign visitors, which will boost retail sales further. phase of the scheme was inaugurated last year, with the company saying
According to JLL’s latest Global Real Estate Transparency Index, the the scope of work for phase one of The Avenues – Riyadh comprised
Kingdom maintained its position in the top 50 global rankings, boosting the mall, parking area, gardens and internals roads.
its position at a regional level. It ranked 49 on the index and following an Being developed by Azad Properties and on course to open this
excellent 2022, the outlook for the Kingdom of Saudi Arabia looks very year after the initial launch ceremony took place recently, the Souq7
encouraging for 2023 and beyond. The projects highlighted below are development in Jeddah, Saudi Arabia celebrates legacy and culture in an
just a microcosm of what is happening across this unique region. entirely reimagined souq setup. It reflects modernity and innovation in