The growth reflects changing consumer habits and Saudi Arabia’s emergence as a retail destination.
Regular malls have spread across urban and suburban areas in Saudi Arabia, but the volume of available malls has made it difficult for these spaces to create customer loyalty, the Riyadh and Jeddah Lifestyle Retail Scene report said, adding shoppers are becoming selective and expect experiences beyond retail.
Riyadh, Jeddah in Saudi set for major retail expansion with 39 new lifestyle developments
“In response to this shifting consumer behaviour, lifestyle retail destinations have emerged as a much more popular choice. These locations offer a combination of exciting retail, placemaking and immersive experiences that attract visitors not only for shopping but for socialising, entertainment and events. With the integration of dining, outdoor spaces, art installations and interactive exhibits and events, lifestyle destinations have become more than just malls – they are vibrant community hubs,” Faisal Durrani, Partner – Head of Research, MENA said.
Riyadh’s lifestyle retail market currently encompasses 484,900 square metres of space across 27 developments, with 47,500 square metres added in the past year.
By 2027, total supply is expected to reach 871,200 square metres, driven by 12 upcoming projects, increasing the total number of lifestyle retail developments in the city to 39.
The Al Hamra development will add 89,230 square metres this year, offering high-end retail, dining and entertainment in a pedestrian-friendly environment.
In 2026, the reimagining of the city’s Euromarche as Riyamarche will provide 21,840 square metres. The Bellvue, Riyadh’s largest master planned mixed-use project, will deliver 90,000 square metres in 2027, promising shopping, dining, civic and cultural experiences.
The lifestyle retail market shows occupancy of 97 per cent and F&B units averaging 76 per cent occupancy. Average lease rates stand at SAR 2,400 per square metre.
“The lifestyle retail scene in Saudi Arabia continues to expand, boosted by overall consumer spending, which has increased by 7 per cent year-on-year to SAR 1.4 trillion. Riyadh is at the forefront of this retail resurgence, with all of the city’s flagship lifestyle developments at 100 per cent occupancy or very close to it,” Jonathan Pagett, Partner – Head of Retail Advisory, MENA added.
“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. 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,” he explained further.
The opening of the Dior Café pop-up in Riyadh at the Saudi National Museum until April 2025 and Ralph’s Coffee at KAFD in June 2025 mark developments in Saudi Arabia’s luxury retail and F&B sector.
These openings showcase a trend that could pave the way for more designer cafés and lifestyle experiences within the Kingdom.
“The arrival of luxury branded cafes is in line with the government’s Vision 2030 initiative, which focuses on economic diversification and transforming the Kingdom into a tourism hub. 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 Saudi Arabia firmly on the map as a leader in lifestyle retail,” Konstantinos Papadakis, Associate Partner – F&B Consultancy, MENA said.
Jeddah’s lifestyle retail market saw the addition of 24,100 square metres in the past year, increasing total completed space to 233,400 square metres across 17 developments.
“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. The city’s lifestyle retail sector enjoys a strong average lease rate of SAR2,200 per sqm and overall occupancy stands at 81 per cent, with F&B units averaging 75 per cent occupancy,” Amar Hussain, Associate Partner – Research, MENA said.
The Jeddah Cove Waterfront project will add 70,000 square metres by 2027. The development forms part of a 127,000 square metre lifestyle destination featuring dining options alongside more than 200 shops, a cinema and a marina with views of the Formula 1 circuit.
The Delta mixed-use project will deliver 37,200 square metres this year at the southwest corner of King Abdulaziz Road and Al Salam Street.
The offering will include outlets serving the development’s hotel, serviced apartments and office tower.
Seven new developments are expected to deliver 205,600 square metres, bringing total lifestyle retail supply in Jeddah to 439,000 square metres by 2027.
“The overall retail landscape in Jeddah is experiencing significant growth, with new malls and lifestyle retail spaces emerging alongside the expansion of existing shopping destinations. 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 centres focused on offering leisure opportunities, predominantly through new and unique F&B concepts,” Papadakis concluded.
