Page 56 - #182 June 2023

Riyadh

Riyadh Singapore
Knight Frank’s report entitled ‘Saudi Arabia Commercial Market Singapore, officially the Republic of Singapore, is an island country and
Review: Summer 2022’ highlights that in Riyadh the fortunes of the retail city-state in maritime Southeast Asia whose retail market size was valued
sector are on the cusp of reversing. The Ministry of Investment issued as high as SGD44.5bn in 2021 and is expected to achieve a CAGR of
2,056 foreign investment licenses in the final quarter of 2021. 44 per more than three per cent during 2021-2026. Research from Knight Frank
cent (907) of these were linked to the retail and e-commerce sectors. in their report ‘Singapore Retail Market Update – Q1 2023’ explains
They have noted a steady stream of requirements from international that there has been an upturn in prime retail rent as the tourism sector
retailers looking to enter the Kingdom, particularly Riyadh, putting recovers. More borders in Asia have reopened and Singapore welcomed
upward pressure on rents. Malls are the primary target for these new visitors from previously closed countries. According to the Singapore
entrants and regional and super-regional mall lease rates are beginning Tourism Board (STB), Singapore welcomed more than 2.9 million visitors
to creep up as new requirements gather pace. On average, larger malls in the first quarter of 2023. Although about only two-thirds the pre-
(SAR 2,716 per square metre) have seen rents increase by one per cent pandemic 4.7 million arrivals in Q1 2019, the average duration of visitor
over the last 12 months. Vision 2030 is changing the Kingdom’s retail stays lengthened from an average of 3.34 days in 2019 to 3.97 days in
landscape dramatically. With 56 per cent of Saudi’s population below the early days of 2023. Since April 2022 when Covid-19 restrictions in
the age of 35, the country has a young and dynamic demographic. They Singapore were broadly lifted, many local brands flourished, expanding
have been exposed to international brands and fashion labels, restaurant both locally and globally as pandemic pressures eased. While Singapore’s
experiences and edutainment overseas. And as these international retail sector strengthens, the gravitation towards experiential retail
retailers arrive in their droves, they are being readily welcomed and and lifestyle continues with increasing popularity for health, beauty
absorbed into the retail fabric. Indeed, in Riyadh alone, 290,000sq m and wellness services. Such concepts have been steadily growing with
of restaurant-led retail developments, including 275 new restaurants, people becoming more accepting of alternative and holistic therapies
spread across 16 lifestyle retail developments, have been completed such as Traditional Chinese Medicine (TCM), meditation and preventive
since the launch of the National Transformation Plan in 2016, ushering health. This is also aligned with wider discussions for Singapore to be
in a thriving food scene in the capital. In addition, the report explains fashioned as an urban wellness hub as part of its tourism offerings.
that they expect the hospitality sector to continue to recover over Notwithstanding the upward revision of the Goods and Services Tax
the medium term as Riyadh remains a focal point for tourism and (GST), inflation and economic uncertainty, the retail sector is expected
business growth, supported by governmental infrastructure and tourism to continue to recover and improve as air travel and visitor arrivals edge
investments in line with Vision 2030. toward pre-pandemic levels.

Singapore