JEDDAH’S RETAIL REALIZES NEW BEGINNINGS

Algothmi: “Souq7 is expected to generate SAR 2.3B in Annual Retail Sales and more than 24 thousand new jobs.”

Souq7 is the new brand for an old shopping destination development previously known as Prince Mutib Markets at Kilo 7, Southeast of Jeddah City, Saudi Arabia, which is currently witnessing a major transformation and regeneration process on an area of 728,000 sqm of land with a complete modern infra and super-structure makeover for the whole site by Azad Properties. Azad Properties was established in 2017 and want to position itself as one of the prominent contributors to the real estate market in Saudi Arabia.

Azad Properties is redeveloping Souq7 to answer the retail needs of Jeddah’s growing population in the Southeastern part of the city by delivering enjoyable, accessible, safe shopping and dining destinations, which combines a modern lifestyle with contemporary traditional design. Souq7’s vision is to become a destination shopping centre / district that celebrates the best of Saudi bazaars and souqs, merging the heritage, culture, and traditions of these historic locations with a contemporary infrastructure that provides modern amenities to both tenants and shoppers alike. The area of Souq7 was previously a combination of a variety of successful unorganized retail shops and services, it was a

destination for Jeddah residents and its suburbs. The new Souq7 will build on the success of its long history of being a shopping destination and evolve to serve its visitors in a unique and a new attractive atmosphere. Majid Algothmi, Executive Director, Azad Properties speaks to Retail People Magazine on Souq7’s new project and reveals most of the project’s unique propositions.

1. Tell us about the Kingdom’s retail and the performance that the country is witnessing.

Saudi Arabia’s gross domestic product advanced 12.2% year on year. In the second quarter of 2022, higher than the preliminary estimates of 11.8%, and accelerating from a 9.9% growth in the previous quarter. It was the strongest growth in the GDP since the third quarter of 2011 according to the Central Department of Statistics & Information. Also, the recent data revealed by the Saudi Arabian Monetary Authority shows the solid performance of POS transactions in KSA with a growth of 16% from last year which is a good indication of an increase in consumer spending in the country.

2. How do you see the future of Jeddah’s retail potential?

While the capital Riyadh has gotten its share and seen numerous development initiatives and projects, the city of Jeddah is now in scope. The inaugural of the Jeddah Central project by HRH Crown Prince Mohammed bin Salman comes with a 20 billion USD plan to attract tourists and wealthy foreigners. Construction works started in the project involving marine and infrastructure schemes. The project will regenerate 32 districts spanning over 37 million sqm to rebuild modern residential communities.

SOUQ7 Team of Azad Properties

L-R: Ahmad Mujallid (Sr. Marketing Manager), Bassam Badr (Asst. Manager - Leasing), Rayan Hindi (Director-Leasing), Ayman Al Burti (CEO) & Majid Algothmi (Executive Director)

With all these projects in the city, Souq7 rises as Azad’s contribution to the regeneration process the city is undergoing and will be the new beginning for the value shopping experience in Jeddah. Souq7 will continue its legacy of providing a diversified mix of retail stores and services and will be the address for those looking for smart deals, by introducing 7 zones for 7 different main activities that provide a diverse, enjoyable, easy and safe shopping experience. Further with the latest ease of COVID restrictions, the region is witnessing a clear growth in visitors led by Haj & Ummrah visitors which is expected to have a further positive spillover from their spending on the retail sector in the city.

3. How is Souq7 going to contribute to the retail landscape in Jeddah? What will it promise to its audience?

Souq7 with its distinguished location being linked to AlHaramain Freeway and Abdullah Al-Sulaiman St., and in proximity to King Abdulaziz University, Dar Al-Hekma College and Effat University; will offer 4,000 shops which will contribute to creating more than 24,000 new jobs and expected to generate SAR 2.3B in annual retail sales. The project, Souq7, with its new slogan “A Souq for Everyone”, will redefine the open market shopping experience for Jeddah residents as well as inbound and outbound visitors by offering modern diversified retail, dining & entertainment mix in an enjoyable ambience and atmosphere. The souq will also offer a modernized infrastructure, highlighting the city heritage that is manifested by the building architecture of the traditional shopping zone, as one of the major attractions. With this, it will meet the bright future of modern lifestyle highlighted by the architecture of the Fashion Zone and the Central Park buildings as its major entertainment and F&B hub. Furthermore, Souq7 will host more than 800 fashion shops, Furniture, Home Appliances, Home Improvements, Electronics, Auto, Gym, Medical Centre, Hotel and Offices. Also, a small logistics component will be woven into the mix in a seamless way that enriches the shopper’s experience.

4. What are the opportunities that Souq7 will offer?

Souq7 aims to act as a compliment and catalyst to the regeneration process taking place in the adjacencies “5KM radius”, for the residential district which is planned to be transformed as one of Jeddah’s major attractive points. This exact area will witness important changes starting from an augmented profile of catchment residents and shall feature vital services including hospitality entities, F&B outlets, commercial stores, public places, financial institutions, health care properties, as well as other points of interest such as schools and other diverse educational institutions.

We are excited about Souq7 as it will capitalize on those opportunities by acting as a platform for them and bringing in new tenants and retailers to gain advantages from the increasing demand for an open retail environment in KSA. Souq7 will offer traditional shopping, dining and entertainment areas as the main attraction for visitors and tourists. The entertainment areas are characterized by a variety of recreational activities that provide various types of amusement for all family members of all ages. The Souq will cater to various options of restaurants, cafes, cinemas, different sports activities, and games. Souq7 is expected to feature year-round events hosting open-air exhibitions and events in one organized area. Moreover, Souq7 promises

Souq7, with its new slogan “A Souq for Everyone”, will redefine the open market shopping experience for Jeddah residents as well as inbound and outbound visitors by offering modern diversified retail, dining & entertainment mix in an enjoyable ambience and atmosphere.

an enjoyable value shopping and entertainment experience for the citizens of Jeddah and the Western Region together with various visitors from the Kingdom of Saudi Arabia as it will offer more than 7,000 parking bays, 6 mosques, 110 buildings, 10 cinema screens on an overall land area of 728,000 metres squared. I believe Souq7 will become one of the retail destinations in Jeddah that will serve as an incubator for innovative, emerging brands, enabling them to expand to the regional market and beyond. Besides, it is expected to host some of the most popular brands in a wide variety of categories, including clothing, furniture, electronics and many more.

5. Souq7 seems to be an open mall concept, why did you choose to follow such a concept?

Keeping pace with the global new trends, we at Azad want to capitalize on providing smart options along the direction of Vision 2030. At Azad Properties, we think differently, as we are following modern retail development ideas rather than the regular concepts, allowing us to create open Souq experiences, especially that visitors can enjoy an outdoor walk across lighted pathways, and a mix between the modern and heritage shopping experience that stimulates the senses.

MAJID ALGOTHMI

EXECUTIVE DIRECTOR AZAD PROPERTIES