RIYADH: Saudi developer Cenomi Centers is exploring additional financing options to support future growth opportunities that are expected to follow after the opening of its two flagship malls, Jawharat Riyadh and Jawharat Jeddah.
Being built at a cost of up to SR5 billion ($1.33 billion), excluding land costs, Jawharat Jeddah is set to open at the end of 2025, followed by Jawharat Riyadh in early 2026.
In an interview with Arab News during the ongoing Retail Leaders Circle Global Forum 2025 in Riyadh, the company’s Chief Operating Officer, Bruno Wehbe, shared insights into Cenomi’s financial strategy and the ambitious vision driving the projects.
“We are looking at all options to fund the massive growth that’s coming around the corner,” Wehbe stated. “Our CFO is looking at a multitude of sources. These include raising financing again, it could be sukuk, it could be something else.”
The COO also pointed out that potential funding sources include the sale of non-core assets, such as unused land, a move that has already been announced as part of a broader strategy.
He highlighted that internal operations will contribute to financing growth capital expenditures, stressing that the approach is well-thought-out and strategic.
The Jawharat Riyadh and Jawharat Jeddah projects are set to be transformative for Saudi Arabia’s retail and lifestyle landscape.
“Together, excluding the land, they will cost upward of SR5 billion ($1.3 billion). They are expected to rank among the top one to three in their respective cities and the top five in MENA. This is the benchmark we are aiming for,” Wehbe said.
These developments are not just aiming to be traditional malls; they are being designed to establish themselves as premier lifestyle destinations.
Jawharat Riyadh, in particular, will stand as one of the region’s largest retail complexes, covering 500,000 sq. meters of land—roughly the size of 70 football fields. The mall will offer 220,000 sq. meters dedicated to retail, office space, entertainment, and food and beverage experiences.
“We are breaking this closed concrete box design that you see across Saudi Arabia, including some Cenomi Centers malls, the old ones in particular,” Wehbe noted. “For example, the Jawharat Riyadh will have almost 27,000 sq. meters of skylight. It’s probably the largest skylight in the Middle East for a lifestyle destination.”
Cenomi Centers is also aiming to set a new benchmark in sustainability. “Sustainability is at the heart of what we do. We’re really aiming to be the first gold LEED-certified mall in the Kingdom, at least in Jawharat Jeddah and then Jawharat Riyadh. We’re aiming for platinum, but we’re promising LEED,” he said.
The tenant mix is a key component of the strategy, according to Wehbe. “What we call ‘magic’ is the mix. You can build the best asset, achieve the highest sustainability standards, and offer the best omnichannel experience. If you don’t have the right mix—meaning the right brands, the right tenants, the right experiences—you won’t have a successful asset,” he explained.
The space allocation within the malls reflects this vision. “We’re planning an additional 65,000 sq. meters of prime office space at Jawharat Riyadh,” Wehbe added.
Phase 2 of the developments will also include an arena, branded residences, and several four- and five-star hotels.
The developer is also focused on introducing unique offerings to the Saudi market. “We are introducing more than 15 to 20 new brands and concepts that will make their debut in Saudi Arabia at Jawharat Riyadh. You’ve never seen them here before,” Wehbe shared.
He continued: “You’re talking about first-of-their-kind concepts created by young Saudi designers and local commissions. We’re also bringing in media studios with broadcast facilities inside Jawharat Riyadh.”
Wehbe also emphasized the company’s commitment to strengthening its financial position and improving its credit rating. “The sukuk we raised last year had multiple purposes. Part of it was used to stabilize and strengthen the capital structure, and part of it went towards improving the credit rating. We had a BB- rating with a stable outlook,” he said.
He added: “Ultimately, our goal is to improve our rating. I personally believe that as soon as growth takes shape—through these two Jawharats and other upcoming announcements—we’ll see progress.”
The company expects significant financial returns from these investments. “Jawharat Riyadh and Jawharat Jeddah will contribute more than 50 percent of our existing EBITDA (earnings before interest, taxes, depreciation, and amortization),” Wehbe stated.
The two malls are projected to generate SR650 million in steady-state EBITDA within about two years, which will account for approximately 50 percent of the current EBITDA base.
“The market will only improve. It’s one of the few bright spots of this region, if not the world,” Wehbe said, highlighting the broader market context and emphasizing how Cenomi Centers’ growth is intricately intertwined with Saudi Arabia’s economic trajectory.
Reflecting on the company’s recent performance, Wehbe described 2024 as a year of record achievements. “We were on track to achieve more than 130 million visits across our 22 centers — 130 million, that’s almost roughly four times the Saudi population. Massive. I don’t think that’s matched anywhere in the Kingdom. We also had record occupancy rates,” he remarked.
Looking to the future, Cenomi Centers is determined to deliver on its promises and further elevate investor confidence.
“Investors will finally get the confidence that we are basically executing on what we promised them, and that is the materialization of the promise of the two Jawharats and beyond,” Wehbe concluded.
