JEDDAH: The Red Sea port city of Jeddah is home to around 100 shopping malls, which are treated by people who live here — both Saudis and expatriates alike — as places of entertainment. As the Kingdom’s economic boom continues, the number of malls is expected to increase.

John Sfakiankis, chief economist at the Saudi British Bank (SABB), feels the Kingdom’s shopping malls serve two purposes: shopping and entertainment.

“Shopping centers, which are fully air-conditioned, are part of a lifestyle here. Therefore, to many, shopping is not just an activity everybody does, it is an activity that everybody enjoys,” said Sfakiankis, adding that the Kingdom’s increasing population has caused the number of malls in Jeddah to grow.

“The demand for shopping malls is increasing. There is a fine balance between supply and demand... It is difficult to always forecast the demand for malls. Also, malls go through fashion periods when certain malls are trendier than others,” he said.

Sfakiankis said there is a need to limit the number of malls in the city. “We have to be careful how many malls are allowed. The government has to be transparent in how licenses are issued to build them. Meaning, there shouldn’t be too many malls,” he added.

However, with people still reeling from the stock market crash of 2006 and inflation rising, one wonders whether consumers still possess the same purchasing power they used to have. “If their salaries have not increased proportionately, then people will most likely buy fewer goods than they used to,” said Sfakiankis.

He added that the stock market collapse left many people in debt. “People owe banks, families and friends. This leaves a psychological effect in terms of consumer behavior... instead of buying five items, people who have debts only buy one item,” he said, adding that he still believes the Kingdom would see more shopping malls coming up.

Ahmed Saad, a father of three, likes to shop in malls, as they consist of a wide variety of stores selling a range of items. “Malls nowadays not only have clothes stores but shops selling everything from personal items to household goods... I can also take my children without worrying what to do with them,” he said, referring to the play areas that have become an inherent feature in the Kingdom’s malls.

Ismaeel Mohammed, a father of two, believes there are far too many shopping malls in Jeddah. “Some malls have a good selection of shops, while others consist of useless shops selling useless items,” he said.

Sarah Saeed, a 24-year-old university graduate, said there is the problem of the same stores opening in different malls. “All malls have the same brands. We need something new,” she said.

She, however, added that malls are a source of entertainment. “I hang out at malls with my friends and check out the new items that are on sale. The food courts also serve a variety of food,” she said.

Maha, a mother of two, takes her children twice a month to a shopping mall so they can play while she buys groceries for home. “Now malls have supermarkets, food courts, play areas and stores dedicated to women... I don’t have to worry about where to take my children on the weekend. The only problem I face on weekends is that malls are extremely crowded, something which can be annoying,” she added.