In recent years, The Kingdom of Saudi Arabia has captured global attention, due to its extensive investment and developmental progress in the Gulf Cooperation Council (GCC) region. The Saudi Vision 2030 plan, aimed at economic diversification and reducing dependence on hydrocarbons, is reshaping cities and surrounding areas.
At the core of this transformation is the Public Investment Fund (PIF), Saudi Arabia’s sovereign wealth fund managing over $925 billion in assets. Several PIF businesses and investors are leading the transformation with ‘once in a generation’ seen megaprojects. As it stands, the value of property and infrastructure projects announced since Saudi Arabia rolled out its National Transformation Plan in 2016 has exceeded $1.25 trillion, according to real estate agency Knight Frank.
The kingdom’s transformation under the Saudi Vision 2030 plan is set to drive substantial economic growth while the benefits for these giga-projects are expected to expand beyond real estate and infrastructure sectors. Noteworthy initiatives from Red Sea Global and Roshn contribute to diversifying the economy through tourism, hospitality, and homeownership projects. These projects will not only provide significant employment opportunities to surrounding areas but the development of mosques, retail and F&B Outlets, parks, schools, and leisure and entertainment facilities will create a new way of community living.
The Retail Leaders Circle Summit hosted in Riyadh, provided the stage for industry leaders to share their knowledge, offering the chance to dissect the challenges facing the market and assess opportunities for future growth.
During the summit, Coniq CEO Ben Chesser moderated a panel discussion at the Middle East Retail Real Estate Forum entitled ‘The Mall: How to Transform’. The session highlighted several noteworthy themes, particularly in the shopping mall sector, where heightened competition from new developments along with evolving tourism trends and the surge of e-commerce has changed the retail landscape. Coniq CEO Ben Chesser emphasized the importance of collaboration and leveraging proven technology to lay the groundwork for organic growth and future innovations.
“There are countless exciting opportunities in the GCC region, not just in developing unparalleled shopping destinations but also in building robust communities and welcoming global tourists. The secret to success lies in avoiding the rush. By starting with well-proven, world-leading technology providers, you build a foundation upon which to create the super Apps and digital ecosystems of the future.”
Key Insights from the summit highlighted three critical themes:
A New Community Vision
There is significant potential to create communities that transcend mall boundaries, encompassing entire neighborhoods, local infrastructure and multiple amenities. The scale of these projects necessitates modular, ready-made solutions that can deliver immediate results and adapt, integrate, and expand over time. Many legacy in-house solutions in the region have become rigid, complex, and costly, underscoring the need for innovation.
Insights from the Retail Leaders Circle spotlighted the need for innovation in this drastically evolving region. The dynamic retail market in the GCC region requires strategic planning, cutting-edge technology, and a robust foundation for future retail ecosystems. As Saudi Arabia and neighboring countries like Qatar undergo significant changes and development projects, the focus extends beyond shopping destinations to cultivating strong communities and attracting global tourists to build a resilient foundation for the evolving retail landscape in the GCC.
The Challenge of Differentiation
Operators face the distinctive challenge of distinguishing themselves amid increasing competition. As the 2030 launch date approaches, the need to implement digital solutions like Apps and Loyalty programs becomes ever more evident. The demand for experts with proven solutions is critical for swift adoption and seamless integration, ensuring a cohesive experience for both retail brands and consumers.
Emphasis on Emotions over Transactions
The retail industry, now more emotional than transactional, recognizes that smart digital solutions and personalized shopping experiences, rooted in an understanding of history and culture will be the key to creating a competitive edge. Attracting retailers and consumers to these new projects requires a modified approach, particularly when catering to emerging audiences. With a youthful population, a burgeoning middle class, and an impending tourism boom, a nuanced marketing approach becomes necessary for meeting new customer expectations.
