RIYADH, 19 July 2007 — A world-class shopping mall, estimated to cost SR1.1 billion, will be built on Prince Sultan Road in Jeddah as part of the Saudi-UAE joint venture that will launch a series of upscale malls in the Kingdom over the next five years.
The project simultaneously marks the entry of the UAE’s Majid Al-Futtaim (MAF) Group in the Kingdom that deals with over a 1,000 retailers across the globe and draws over 85 million shoppers annually to its malls.
The joint venture agreement for the construction of Jeddah Riviera Mall was signed in Jeddah recently between MAF Shopping Malls, Dubai-based leading developer of shopping malls in the Middle East, and the Al-Ghazzawi Group, headed by Talal Al-Ghazzawi, chairman, Al-Ghazzawi Group. The goal of this strategic alliance is to build a series of shopping malls and mix-used properties across the Kingdom.
Jeddah Riviera Mall will span more than 100,000 square meters and house over 300 retail outlets including MAF Hypermarkets - Carrefour, the world’s second largest retailer and other key anchor stores. The retail mix will include convenience, fashion, home, electronics, entertainment and leisure categories, a variety of multi-cuisine restaurants among others. Multiple entries and exits at different levels of the 4,000-plus parking lot will ensure that customers can easily access the mall from all directions.
One of the highlights of this partnership will be the launch of the well-known “City Center” brand in the Kingdom. The first project, Jeddah Riviera Mall, will be built using Al-Ghazzawi Group’s local expertise in real estate and mix-used projects in the Kingdom along with MAF Shopping Malls regional experience. It will be completed by 2010.
“The joint venture agreement with the Al-Ghazzawi Group marks MAF Shopping Mall’s debut in KSA,” Graham Dreverman, CEO, MAF Shopping Malls, said, adding: “We look forward to working with our partners to build a world-class shopping mall that will meet the consumers demand for shopping, leisure and entertainment.”
Providing an overview of the Saudi retails market, he said that in the next 10 years, the retail expenditure in the Kingdom is expected to rise to $100 billion.
“Through this joint venture, we hope to build many projects in the Kingdom as part of the company’s aggressive regional expansion plan. Our aim is to capitalize on this retail boom and expand our footprint in the country by developing many City Center shopping malls in KSA,” Dreverman observed.
Speaking on behalf of the Al-Ghazzawi Group, Bilal Talal Al-Ghazzawi, vice chairman and managing director said: “The real estate investment sector is growing in the Kingdom. The Western Province has witnessed a substantial increase in investments for new projects, with Jeddah being the major beneficiary of this boom. The Al-Ghazzawi Group has drawn up an ambitious investment plan to implement a number of real estate projects that will contribute to the economic development of the Western Province.”
