RIYADH: According to a recent analysis, the retail area of Riyadh is expected to increase by 28% to 4.6 million sq. m. by 2026 due to the expansion of shopping malls and lifestyle centers.
Global real estate consultancy Knight Frank reported in its most recent report that the capital of Saudi Arabia currently has 3.6 million square metres of retail space available, with about 27,050 sq. metres of new space coming on the market in the first half of this year.
The Kingdom’s Minister of Municipal and Rural Affairs, Majed Al-Hogail, highlighted the retail sector’s 23 percent contribution to the non-oil economy earlier this year and aimed to surpass SR460 billion ($122.65 billion) by 2024. The sector’s growth is critical to Saudi Arabia’s aspiration to become a global hub for tourism.
He called the growth of Saudi Arabia’s retail industry “phenomenal,” highlighting its contribution to its non-oil GDP growth.
“It is impossible to overestimate how quickly Saudi Arabia’s retail and food and beverage industries are changing, and Riyadh is at the center of this extraordinary expansion, which is also driving the Kingdom’s attempts to diversify its economy,” the speaker stated. According to the report, over the previous 12 months, the average rental rates in Riyadh’s retail market rose by 3% to SR2,725 per square metre.
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