Al Futtaim Group signs deal to build US$1.6 Billion Festival City in Saudi Arabia
Posted on 2nd June 2014
Dubai-based Al Futtaim Group signed a memorandum of understanding (MoU) with Riyadh’s Kayannat Real Estate to build Al Diriyah Festival City- the largest shopping mall in Saudi Arabia. The shopping mall will have 250,000 square metres of gross leasable area (GLA) and will be located at the Al Diriyah district in Riyadh near King Saud University and King Abdullah Financial district, the group said in a statement.
Construction of the US$1.6 billion super regional mall will be anchored by an IKEA store, is scheduled to begin soon while the completion date is set after 12 months. The mall will be anchored by an IKEA store and will also comprise a luxury 500-room hotel and serviced apartments as part of the development, the company said.
As per the agreement, Al Futtaim will manage all matters related to the al Diriryah Festival City project and will provide investment and development management services to construct, lease and operate the mall.
Omar Al-Futtaim, vice chairman, Al Futtaim Group said, “With a population of 30 million Saudi Arabia is the GCC’s biggest market with a booming retail sector expected to reach a value of SAR276 billion by the end of 2014 which accounts for 17 per cent of Saudi Arabia’s GDP. We are privileged to be able to enter into a partnership with a group of prestigious businessmen who include the franchisee of IKEA in the Kingdom, Dr Ghassan Ahmed Abdullah Al Sulaiman, in order to tap into this lucrative market and further contribute to the Kingdom’s economic development.”Back to all Construction News
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