JEDDAH, 6 June 2008 — More than 2.8 million square meters of rental space is available in shopping centers in Saudi Arabia’s two largest cities, Riyadh and Jeddah, according to real estate specialists.
“Total investment in the Saudi retail sector is estimated at around SR220 billion,” said Ghassan Khalifa, vice-president for the commercial division in Kinan International for Real Estate Development, in a speech at Retail City conference in Dubai recently.
“The real-estate development market grew to a new level over the past ten years, and the era of normal shopping centers has ended and new designs and ideas have entered,” said Khalifa. “At the same time, the population of Saudi Arabia increased by 12 percent, and is expected to reach 27 million by 2010.”
Kinan International for Real Estate Development participated in the June 1-3 exhibition as a Platinum sponsor. The annual Retail City conference gathers real estate retailers for discussions on the latest developments in the sector, such as new investment opportunities and challenges.
Khalifa said tourist arrivals in Saudi Arabia has been increasing by five percent annually and has crossed the nine million mark.
“The projected increase in population and tourists is an indicator of the investment volume in the commercial centers sector,” he said. “The Saudi market is expected to be oversupplied with commercial centers by the year 2013.”
“The total area available for rent in commercial centers in Saudi Arabia is estimated at 2.8 million square meters in 2006, out of which 57 percent are in Riyadh and Jeddah,” Khalifa said. “With the facilities provided by Saudi Arabia for foreign investments, contrary to earlier times, investments in the Saudi retail sector witnessed great diversification that led to its maturity.”
Kinan International For Real Estate Development won the award for the Best Real Estate Developer for the retail sector in the Middle East in 2005 and 2006. Founded by Savola in 2004, the company’s asset is estimated at SR3 billion. It owns 11 commercial centers having the most famous local and international brands, in addition to Hyper Panda shopping centers.
One of the company’s major ongoing ventures is a mega lifestyle project in Jeddah located at the intersection of King Abdullah Street with Al-Andalus Street.
