Mall of Saudi

Majid Al Futtaim suspends work on Mall of Saudi: Report

Majid Al Futtaim (MAF) suspended work on its estimated SAR 6 billion Mall of Saudi project in Riyadh, MEED reported. The project was part of the company's plan to invest SAR 14 billion in two malls in the Kingdom. MAF declined to comment on the suspension of the project. The group manages several malls in the Middle East, especially in the UAE, under the brand "City Center". MAF was planning to start the construction works on the project at the end of 2021. In June 2021, the group awarded a four-year contract to AECOM to provide consultancy services for the Mall of Saudi project. MAF founder passed away in December 2021, and it appointed Ahmed Galal as CEO, to replace Alain Bejjani after eight years in the role.

Saudi Arabia · 29 Apr 2023

Majid Al-Futtaim chief kicks off “humungous” Mall of Saudi project

RIYADH: Alain Bejjani, chief executive of the Majid Al-Futtaim retail and hospitality conglomerate, told Arab News about the “humungous project” now under way in the Kingdom after he formally began construction of the Mall of Saudi. Straight after a ground-breaking ceremony for the new mall, Bejjani said at the FII form in Riyadh: “It will be one the largest malls in the world, and will have a cutting-edge customer experience and at the edge of the leading retail of tomorrow. It will be a big attraction for shopping, leisure and entertainment, but also a big tourist attraction internally and globally.” “Last year we were hoarding and buying more than we needed. This isn’t happening anymore because people are no longer in fear of meeting their grocery needs. So there was a recalibration in early 2021. But from September, we are seeing growth coming back and this is very important. Next year is definitely going to be a growth year,” he said. Many households shifted purchase of essential goods online during the pandemic, and some of that has stuck. Saudi online grocery sales are about 10-12 per cent of total sales, he said, among the highest in the region. Two other big markets for MAF — in the UAE and Egypt — were also showing strong recovery growth, he said. “The recovery in the world retail economy is stronger than in other parts of the economy,” he added. In the Vox cinema business, he said fears that the movie business would lose out to the streaming services like Netflix had proved to be misplaced. “People want the experience, they are coming back to the movies,” he said. But the cinema business was still in need of good quality content, after studios were forced to stop production last year. MAF is considering ways to promote regional and local cinema content. “What our customers want is Arabic content, Khalijee content, Egyptian content, and one of our plans is to foster local content development and production. This is something we are doing with a number of partners,” Bejjani said. He also spoke about the chronically low levels of cross-border trade in the GCC countries, in comparison with other trading blocs such as the EU and ASEAN. “The wider Middle East region has half the labour productivity of other parts of the world,” he said, advocating an end to tariffs and freer movement of labour, potentially involving a special “business visa” to give multiple entry in the GCC countries. The new mall, being developed at a cost of 16 billion riyals ($4.3 billion) over the next four years, will include six hotels and around 1,600 residential units in “an integrated community that offers a very new lifestyle in line with Vision 2030.” Although progress on the project was slowed last year by the pandemic lockdowns, behind the scenes Bejjani was working to attract tenants to the new development. “I can tell you every global brand is already in Mall of Saudi or has signed up to be there. We started leasing a year ago, and we’re very happy about the level of uptake. It’s a testimony to the Saudi market and the comeback that we’ve seen post-pandemic. This is coming back, we are recovering,” he said. MAF group, which operates cinemas, supermarkets and hotels, in addition to malls, was seriously affected by the pandemic last year, when many of its businesses were forced to close temporarily. He said that while there was a recovery underway in the Carrefour supermarkets, the retail grocery business in Saudi Arabia was going through a “recalibration.” It will also have the largest indoor ski slope and snow dome in the world, he confirmed.

Saudi Arabia · 28 Oct 2021

Majid Al Futtaim appoints Mace for Riyadh North development

Reinforcing its commitment to the Kingdom of Saudi Arabia and its contribution to Vision 2030, Majid Al Futtaim’s Riyadh North development is the fastest growing zone in the city and is already gathering pace. Mace, which was appointed following a competitive regional tender process, has already mobilised its team and will oversee the entire Riyadh North development spanning nearly one million square meters of built-up area, including planning, construction, commercial and control management for the duration of the contract. The $4.2bn (SAR16bn) master-planned Riyadh North project and Mall of Saudi is expected to house over 600 retail stores across a 300,000m2 gross leasable area, nine hotels and branded residences with 2000 keys, and Ski Saudi – the largest indoor ski slope and snow park in the Middle East. It will create more than 114,000 direct and indirect jobs by its completion and will play a key role in elevating Riyadh’s position in global city liveability rankings to help the Saudi capital achieve top 50 status. Ahmed Galal Ismail, Chief Executive Officer at Majid Al Futtaim – Properties, said: “The appointment of Mace as our project delivery partner marks an exciting step in our journey to bring Majid Al Futtaim’s Riyadh North development, including our anchor retail offering, Mall of Saudi, to the city. As we edge closer to breaking ground later this year, we remain fully committed to bringing an unparalleled lifestyle and retail experience that will contribute further to Riyadh’s position on the world stage. Saudi Arabia is already home to the largest retail market in the GCC and we are confident that Riyadh North and the Mall of Saudi will be a natural partner of choice for established and up-and-coming brands to make their debut, and a premium living and lifestyle community for residents of and visitors to Riyadh. With an existing solid base in Saudi Arabia, we are confident that our partnership with Mace will be a success.” Mace has a wealth of consultancy experience and managing large-scale projects globally, including the London 2012 Summer Olympics and Expo 2020 Dubai. Mace also has a long track record with Majid Al Futtaim, having supported on the original development of Mall of the Emirates and its recent redevelopment and expansion, as well as working on City Centre Mirdif and City Centre Deira. Jason Millett, CEO for Consultancy, Mace, said: “We are delighted to have been appointed as project delivery partner on the Riyadh North development and Mall of Saudi. Our relationship with Majid Al Futtaim dates back more than twenty years, and we are excited to continue the journey with this must-visit destination. Mace’s consultancy business is growing rapidly in Saudi Arabia on the back of our extensive retail expertise. Supporting the delivery of Riyadh North and Mall of Saudi is an exciting step forward as we continue to push the boundaries on major programme- and project delivery in the region.” Earlier this year, Majid Al Futtaim announced the appointment of lead design consultant AECOM for pre- and post-contract construction supervision for Mall of Saudi, which will also feature a flagship Carrefour hypermarket and 31 VOX Cinema screens, including the world’s largest IMAX, and a Magic Planet.

Saudi Arabia · 1 Oct 2021

Mall of Saudi construction work to start in Q3

Majid Al Futtaim is set to release the main tender for construction of SAR 10.5 billion Mall of Saudi project by Q3 2018, Thomson Reuters reported, citing unnamed sources. The detailed design of the 300,000-square metre mall is set to be completed by mid-2018, with the main contractor expected to be onsite by the end of Q3 2018. Scheduled completion date is the first quarter of 2022, the report said. Saudi Consolidated Engineering Company (Khatib & Alami) is the lead consultant, Linesight Saudi Arabia is the cost consultant, while RTKL Saudi Arabia is the design consultant. The first phase of the Mall of Saudi will consist of a ski slope, a hotel, and a serviced apartment building. Future phases will include residential, office, medical centre and hotel projects. The Mall of Saudi project was unveiled by Majid Al Futtaim in February 2016 as part of a SAR 14 billion investment to develop two shopping malls in Riyadh.

10 Jan 2018

Majid Al Futtaim to build two malls in Riyadh

Majid Al Futtaim, a leading shopping mall, retail and leisure facilities operator, has announced plans to develop two new landmark shopping malls in Riyadh at a cost of SR14 billion ($3.73 billion). A range of luxury international fashion brands, as well as unique entertainment and leisure experiences will come to the kingdom for the first time at Mall of Saudi and City Centre Ishbiliyah, it adds. Mall of Saudi, the kingdom’s largest and first fully-integrated lifestyle destination with a total land area of over 866,000 sq m in northern Riyadh, will include one of the world’s largest indoor snow parks. The development plan also includes 300,000 sq m of shops, restaurants and entertainment areas, prime residential units, offices and showroom space, luxury hotels, serviced apartment buildings and other public amenities. The first phase of Mall of Saudi will see the opening of the mall, ski slope, one hotel and serviced apartment building as well as other general infrastructure. Future phases will include the development of the residential, office, medical centre and hotel plots. Work is set to commence by mid-2017 and be completed by 2022. Majid Al Futtaim will launch Saudi Arabia’s first City Centre mall in Ishbiliyah, east Riyadh. It will cover more than 100,000 sq m of gross leasable area and will feature 250 stores, a 9,000-sq-m Carrefour hypermarket, a food court and an entertainment complex inclusive of Magic Planet.

29 Feb 2016