"Kinan International for Real Estate Development"; the Platinum sponsor of (Retail City) exhibition and Conference
Ghassan Khalifa: Total investments in retail sector in Saudi Arabia is estimated at SR. 220 billion
More than 2.8 million square meters in rental space is available in shopping centers in Saudi Arabia’s two largest cities, Riyadh and Jeddah, according to real estate specialist.
“Total investment in the Saudi retail sector is estimated at around SR. 220 billion or about $59 billion,” said Ghassan Khalifa, Vice-President for Commercial division in Kinan International for Real Estate Development, in a speech at Retail City conference in Dubai, June 1–3.
“The real estate development market grew to a new level over the past ten years, and the era of normal shopping centers has ended and new designs and ideas have entered,” said Khalifa. “At the same time, the population of Saudi Arabia increased by 12%, and is expected to reach 27 million by 2010.”
Kinan International for Real Estate Developmen" participates in the exhibition on ther sidelines of the conference as Platinum sponsor. The annual Retail City conference gathers real estate retailers for discussions on the latest developments in the sector, such as new investment opportunities and the challenges facing workers.
Khalifa said tourist arrivals in Saudi Arabia has been increasing by 5% annually and has crossed the 9 million mark.
“The projected increase in population and tourists is an indicator of the investment volume in the commercial centers sector,” he said, noting that “The Saudi market is expected to be oversupplied with commercial centers by the year 2013."
"The total area available for rent in commercial centers in Saudi Arabia is estimated at 2.8 million square meters in 2006, out of which 57% were in Riyadh and Jeddah,” Khalifa said.
“With the facilities provided by Saudi Arabia for foreign investments, contrary to earlier times, investments in the Saudi retail sector witnessed great diversification that led to its maturity,” he said.
Most investments in the retail market and commercial centers in Saudi Arabia is sited in Jeddah and Riyadh, however, there are several Saudi promising and emerging cities.
Kinan International For Real Estate Development won the award for the Best Real Estate Developer for the retail sector in the Middle East in 2005 and 2006. Founded by Savola in 2004, the company's assets are estimated at SR3 billion. It owns 11 commercial centers having the most famous local and international brands, in addition to Hyper Panda shopping centers.
One of the company's major ongoing ventures is a mega lifestyle project in Jeddah located at the intersection of King Abdullah Street with Al-Andalus Street. The multi-puspose project consists of two towers, one for offices and the other for residential purposes. In addition the project has hanging gardens and a shopping center.
This is in addition to Albasateen housing project in Yanbu Alsinaiyah, which consists of 240 housing units, plus a commercial and residential project worth SR1.5 billion in Dammam.
