Saudi Mall Owners Race to Attract Shoppers
Saudi Arabia’s retail landscape is undergoing a rapid transformation, as malls across the Kingdom evolve beyond shopping into vibrant lifestyle destinations.
Developers are reimagining both new and existing malls by weaving in art, culture, entertainment, and unique dining concepts to meet the changing expectations of today’s consumers.
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Malls as Community Hubs
“Shoppers are becoming more selective, expecting something beyond just retail and seeking out more engaging experiences,” notes a new report from Knight Frank. This shift is driving developers to introduce art installations, interactive exhibits, and outdoor social spaces, particularly in cities like Riyadh and Jeddah.
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“Lifestyle destinations have become more than just malls – they are vibrant community hubs,” said Faisal Durrani, Partner – Head of Research for MENA markets at Knight Frank.
By 2027, the lifestyle retail space in Riyadh and Jeddah is expected to expand by nearly 600,000 square meters, reaching a total of 1.31 million square meters. Cinemas, reintroduced in recent years, have already boosted foot traffic, but developers believe the next phase of growth will come from creating immersive and social experiences.
Experiential Retail on the Rise
“These locations offer a combination of exciting retail, place-making and immersive experiences that attract visitors not only for shopping but for socialising, entertainment and events,” added Durrani.
The Kingdom’s retail sector is buzzing with activity, with regional and global investors moving in. Recently, Dubai’s Al-Futtaim Group announced multi-billion riyal investments in Saudi Arabia through a stake in Cenomi Retail, while other Gulf entities are also expanding their presence.
“With the Kingdom actively working to attract leading global brands and entice the collective spending power of both tourists and Saudi residents, we expect this robust growth to continue,” said Jonathan Pagett, Partner – Head of Retail Advisory, MENA at Knight Frank.
However, he noted that competition is fierce, 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.”
The Rise of Designer Cafés
Among the most visible trends in Saudi retail is the growing popularity of luxury-branded cafés. The Dior Café pop-up in Riyadh and Ralph’s Coffee have both made a mark, signaling a growing appetite for experiential dining tied to global luxury brands.
“This is a significant milestone in Saudi Arabia’s luxury retail and F&B sector,” the Knight Frank report highlights. The trend is expected to pave the way for more designer cafés and lifestyle experiences within the Kingdom.
“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,” said Konstantinos Papadakis, Associate Partner – F&B Consultancy, MENA at Knight Frank.
“The combination of iconic retail outlets, high-end dining, and experiential venues puts Saudi Arabia firmly on the map as a leader in lifestyle retail.”
A New Era for Saudi Retail
As Vision 2030 accelerates economic diversification, Saudi Arabia’s retail industry is redefining what malls can be: not just shopping centers, but destinations for culture, community, and experiences. From interactive art to luxury coffee, the Kingdom’s malls are shaping up to be at the forefront of lifestyle retail in the region.
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