Shopping mall space in Mecca, Saudi Arabia, is expected to nearly triple by 2025, driven by an increase in pilgrims and massive government infrastructure investment, according to Colliers.
The city has undergone a transformation in recent years, with the addition of hotels and the expansion of other facilities, including the Grand Mosque. Meanwhile, the country is striving to develop its tourism industry and to reduce its dependence on oil revenues.
Pilgrim spending during the five-day Hajj season alone is expected to grow from $4.2 billion last year to about $5.6 billion in 2022, according to research cited in the Asharq Al-Awsat newspaper. The Umrah pilgrimage is a yearlong affair.
Cranes dominate Mecca's skyline as the city undergoes massive development
But Mecca’s retail offerings have yet to catch up. Currently, some 3 million square feet of mall space is available to serve the annual pilgrims (about 8.5 million of them visited last year) and the roughly 2 million residents. But pilgrimage is expected to skyrocket to some 30 million visitors by 2030, in view of the further expansion of hotel facilities and of the major investments in transportation — including a high-speed railroad. As a result, the amount of retail space is projected to reach about 8.6 million square feet by 2025.
Currently, many visitors and residents shop in nearby Jeddah. Seventy-seven percent of the existing retail space in Mecca consists of traditional souks and shops, while 23 percent makes up the shopping centers. These are predominantly community centers (about 85 percent), measuring between 11,000 and 32,000 square feet.
Not only does the city lack retail — particularly fashion retail — but it is also short of restaurants and other entertainment, according to sources.
Among the major retail projects under way are the remaining phases of Jabal Omar, as well as Muzdifah Mall and Abraj Kudai.
By Edmund Mander
Director, Editor-In-Chief/SCT
