Saudi Arabia retail growth continues to accelerate, especially in Riyadh. Rising demand pushes mall rents up by 4 percent in just one year.
Riyadh holds the largest share of the Kingdom’s retail development plans. It accounts for millions of square meters of upcoming retail space, leading the country’s retail expansion.
The average mall rent in Riyadh reached SR2,848 per square meter, reflecting strong demand. Occupancy rates climbed to 92 percent, signaling healthy retail market growth.
Other cities such as Jeddah, Dammam Metropolitan Area, Khobar, and Dhahran also experience steady retail sector growth. Nevertheless, Riyadh remains the dominant retail hub across Saudi Arabia.
Population growth and rising disposable incomes fuel the ongoing retail expansion. Both locals and expatriates drive this surge in consumer spending, benefiting the retail market.
Developers focus increasingly on experiential retail formats. Over half of upcoming projects include entertainment zones, dining options, and cinemas. These trends support Saudi Arabia’s Vision 2030 goals for vibrant urban spaces.
In Jeddah, retail space expanded with new malls like Souq 7 and Al Bahr Mall. Although rents increased by 2 percent, occupancy dipped slightly to 86 percent, indicating some regional variation in retail performance.
The Dammam Metropolitan Area shows stable retail growth, with modest rent rises and steady occupancy rates near 90 percent. This consistency reflects ongoing demand in secondary markets.
Retail stock across these cities keeps growing. For example, Riyadh added developments like Solitaire Riyadh, combining upscale shopping with leisure, strengthening the retail ecosystem.
Experts predict more than half a million square meters of new retail space will open soon. This expansion will push Riyadh’s total retail supply past five million square meters, marking rapid growth.
Luxury retail continues to gain traction in Saudi Arabia. International brands expand to meet demand for premium shopping experiences, contributing to retail sector diversification.
Meanwhile, consumer spending rises throughout the Kingdom. Point-of-sale transactions grew by 9 percent, while e-commerce surged 26 percent. These trends underline a digital transformation in retail habits.
The food and beverage sector also plays a key role in retail growth. Restaurants and cafes accounted for nearly 30 percent of transactions, highlighting evolving consumer preferences.
Flagship malls such as Riyadh Park and Al Nakheel attract strong visitor numbers. Their mix of entertainment and family-friendly amenities fuels retail growth and foot traffic.
Major lifestyle projects like Qiddiya and The Avenues Riyadh aim to redefine urban retail spaces. These developments support Saudi Arabia’s broader economic and quality-of-life objectives.
As the sector evolves, retail growth remains a key pillar of the Kingdom’s economic diversification and development plans.
Saudi Arabia’s retail market shows sustained demand, expanding retail space, and increasing consumer spending. Together, these factors drive a vibrant and growing retail environment.
Overall, the Saudi Arabia retail growth story combines traditional shopping with modern leisure experiences. This blend attracts investors and consumers alike.
