The Red Sea Mall, Jeddah’s biggest shopping centre and family entertainment complex, launched its SR200 million ($53 million) expansion project at a special ceremony recently.

“The Red Sea Mall’s SR200 million expansion strategy is the largest mall expansion in Saudi Arabia,” said Shaikh Saleh Bin Mahfouz, chairman of the Red Sea Mall Markets.

“The expansion will add even more international brands and entertainment facilities, and underscores our unwavering commitment to enhancing the Red Sea Mall experience for our valued visitors and tenants,” he added.

Mohammed Alawi, CEO of Red Sea Markets, said the massive expansion was necessary in order to cater to the growing demand for commercial rental space. “There is a huge demand for commercial rental space at the Red Sea Mall. We have a long waiting list of potential tenants, and this list increases on average by 8 per cent annually,” he added.

 “The expansion will add around 145,000 sq m of Gross Leasable Area (GLA), including a 4,000 sq m open space that will showcase premier international brands as well as a variety of restaurants.  In addition the expansion includes a new parking structure with 1,400 extra parking spaces for enhanced visitor comfort and convenience.”

The expansion is targeted for completion by the end of 2016.

“The Red Sea Mall expansion project will bring mall shopping, dining, leisure and entertainment to a whole new and exciting level!” Alawi concluded.

Middle East Council of Shopping Centers CEO David Macadam said: “The sophistication of the retail environments in Saudi has grown exponentially over the past ten years.  Whereas the level of execution and operations were not as well done as other areas of the world, now Saudi Shopping Centers such as Red Sea Mall are among the most sophisticated shopping centres and retail environments in the world.”

“Demographics in the GCC are a key reason for the retail growth in the region.  Sixty-five per cent of the population is below the age of 25.  This age group are great consumers and will continue to be great consumers for the next 20 to 30 years which bodes very well for the retail industry,” Macadam added.

“AT Kearney has forecasted a growth rate for retail in Saudi to be the highest in the GCC at 9.5 per cent per year.  The average growth rate for retail in the GCC is forecasted to be 5 per cent to 7 per cent per year,” Macadam concluded. - TradeArabia News Service