The Birthplace of Saudi Arabia – The Future of Retail

SHOPPING CENTRE UPDATE

THE BIRTHPLACE OF SAUDI ARABIA

- The Future of Retail

Diriyah, a SAR 190 Billion investment project, is a 7 square kilometres mixed-use historic, culture and lifestyle destination. Diriyah will become the Kingdom’s historic and cultural heart, proudly showcasing to the world Saudi Arabia’s 300+ years of history through an engaging and inspiring set of heritage, hospitality, education, retail and dining experiences for residents, tourists and frequent visitors. The Retail People Magazine had a chat with Alfie Gibbs, DGDA Strategic Retail Advisor, and shared exciting things about the DGDA.

Alfie, thank you for speaking with us. First of all, what is the Diriyah Gate project and how does it fit into Saudi Arabia’s Vision 2030?

Our mission is to transform one of the most important historical sites in Saudi Arabia into a global hub for culture, heritage and tourism. Diriyah Gate will be a 7 square kilometre mixed-use development that protects and celebrates the exceptionally distinctive character of Diriyah. It’s a project with a USD $50.6 billion investment pipeline, adding around USD $7.2 billion to the Kingdom’s GDP. It will create 55,000 jobs and aims to attract 27 million visitors a year. As one of the first giga-projects slated to open, it is really the catalyst of Vision 2030 and is critical to the Vision’s success pledge to raise tourism’s contribution to the Kingdom’s GDP from 3% to 10% by the end of the decade. What is it that makes Diriyah so special as a place?

There is an immense pride in Diriyah amongst Saudis, particularly with it being the birthplace of the Saudi state. When I bring people to Diriyah, whether they be global brands or regional players, they fall in love with it. The uniqueness of any project starts with the location, so what we’re trying to do is curate an experience that delivers an authentic connection with visitors to Diriyah as a place. One of the ways we’re doing that is by building around our UNESCO World Heritage Site at At-Turaif. There aren’t many new developments in the world that can boast that sort of centrepiece. In terms of the project itself, what is the masterplan and what assets are you looking to have?

It’s a hugely exciting project. It’s going to be an unprecedented mixed-use space with culture firmly at its heart. There will be a tangible connection to the history in its execution, but one that works hand-in-hand with innovation and the future. We have a whole host of assets in development—everything from cultural centres to offices, museums, residential areas, performance spaces, a grand mosque, luxury and ultra-luxury hotels—with a number of hotel operators already confirmed, many of whom will be entering the Kingdom for the first time. Six of these establishments hug the development’s first-rate retail heart –Diriyah Square. Diriyah will comprise the Kingdom’s most walkable destination, where service infrastructure, roads and parking are largely subsurface. Talk to us about the retail offering. What can you tell us about it?

We don’t think of our visitors as just shoppers, but as guests. The experience we want them to have goes beyond just buying the latest fashion or goods, it’s about much more than that. We want a feeling of discovery, a sense of wonder and curiosity. We want people to come to Diriyah and find something new every time.

The retail offering at Diriyah will be unlike anything ever seen before in Saudi Arabia. Getting it right is key to realising the vision. We have one of the most comprehensive retail libraries out there, so we’re looking to rival all the great shopping cities of the world. Shopping, dining, leisure, entertainment, together with education, health and well-being centres, all embedded within that retail heart.

The centre of the development is Diriyah Square, which will be one of the Kingdom’s largest shopping destinations, at 186,000 square metres, with more than 400 iconic lifestyle retail, luxury brand, and dining offerings, all designed in the traditional Najdi style. It will be a brand-new lifestyle experience for the Kingdom and the wider region. We are striving to remain authentic to what Diriyah once was: that bustling hub of commerce. We’re creating a truly unique destination, the likes of which can’t be found anywhere else in the region.

Luxury is a key component. We know from our research that the luxury consumer is educated, well-travelled, and is looking for unique, interesting experiences. That’s what we’re aiming to craft in Diriyah. It’s an unrivalled opportunity for our global brands to innovate and articulate new ways of marketing their products, among stunning Naidi-style architecture that protects and preserves the area’s distinctive past.

We are also working with some of the world’s biggest brands to create innovative customer journeys and experiences within our unique architecture and design. Exciting and creative versions of amazing international, regional and local brands.

Next year, we will launch and open our F&B retail precinct – Bujairi Terrace. Upon overall completion, Bujairi will be home to Riyadh’s new premium dining hub, enjoying uninterrupted views of AtTuraif. Bujairi Terrace will be comprised of a meticulously curated set of premium cuisines and beverage brands, encompassing every dining need – ranging from pit-stop coffees to leisurely fine-dining experiences, with 18 food and beverage brands brought together to cater for local and international visitors for the first time.

The pandemic has been a hard hit to retail everywhere. How are DGDA managing the recovery?

Thankfully, DGDA was minimally impacted because we were still at the concept design stage. But what I’m seeing is that the pandemic has accelerated change and encouraged innovation. In retail, we have been forced to ask ourselves, what can we do better, and, in terms of customer service, this has directly benefited our project as we think more about what new experiences we can cultivate for our visitors.

We have been presenting Diriyah to retail brands regionally and on the international stage also. I must say the reaction and feedback has been amazing. The retailers are really excited by the fact that they see this as a next generation retail, multi-faceted and completely experiential. They are also buying into the innovative nature of what we will deliver and can align themselves to the values we are trying to project.

We’re very aware that retail has had a tough time globally and multi-channel has come to the fore, but if you have a distinctive project, backed by world-class team and a compelling retail offer, you will do well. Diriyah Gate is the next stage in the evolution of retail. Don’t believe me? You’ll have to come and see for yourself.

ALFIE GIBBS

DGDA Strategic Retail Advisor