Strong recovery in domestic demand and robust consumer spending reinvigorates Saudi Arabia’s retail sector

Strong recovery in domestic demand and robust consumer spending reinvigorates Saudi Arabia’s retail sector

- Healthy growth in private non-oil activity recorded for the year till date

- Makkah’s hospitality sector witnessed strong performance in the first five months of this year with its occupancy rate increasing almost three-fold

- In the residential market, Riyadh accounted for the largest share of new residential units delivered

- Jeddah delivered the largest quantum of office space in the first half of 2022

Riyadh, Saudi Arabia: In the first six months of the year, Saudi Arabia’s retail sector witnessed an increase in retail space and saw a strong recovery in domestic demand following the relaxation of COVID-19 restrictions.

With an addition of 55,000 sq. m. of gross leasable area (GLA), Riyadh’s total retail stock stood at 3.3 million sq. m., whereas Jeddah’s retail space increased by 16,000 sq. m. to 1.7 million sq. m and the figure for Makkah rose by 17,500 sq. m. to 1.4 million sq. m. in the first half of the year. The Dammam Metropolitan Area (DMA) was the only market with no notable completions recorded in the first half of 2022, leaving its retail stock unchanged at 1.2 million sq. m.

“For the first time in two years after the easing of restrictions relating to the COVID-19 pandemic,