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As Chalhoub Group stated during the IADS CEO meeting in Dubai earlier in 2023, Saudi Arabia stands out as one of the Middle East’s most dynamic retail markets, undergoing rapid transformation fueled by Vision 2030’s drive to diversify the economy beyond oil[1]. 

In 2024, the Saudi retail market reached approximately USD 270.8 billion, with forecasts projecting growth to USD 408.7 billion by 2033 at a compound annual growth rate (CAGR) of 4.2%. The retail landscape has shifted from a dominance of traditional souks and small traders to a more organised and modern format, adapted to the needs of an urban, digitally savvy population (83% of Saudis live in urban areas, 98% of Internet traffic is done via smartphones) and making the most of an increasing consumer spending, especially among youth, expected to account for 75% of retail spending by 2035.

E-commerce is a significant growth engine, with online retail reaching an estimated market size of USD 8.7 billion in 2023 and experiencing a 32% CAGR over the past five years. Apparel, beauty, and food and drink are among the leading online categories, with apparel alone generating USD 4.18 billion in online sales. Substantial investments in omnichannel strategies, digital payments, and experiential retail concepts further energise the retail ecosystem.

This robust growth positions Saudi Arabia as a regional retail powerhouse, attracting local and international retailers considering entering, or strengthening their positions, in KSA. Taking the opportunity of conferences in the country, the IADS visited a selection of malls in Riyadh to understand the market and how department stores are faring there. From the most traditional malls (Olaya Mall, Panorama Mall), to the more Dubai-like (Cenomi Nakheel Mall), luxury-oriented (Al Faisaliah, Kingdom Centre, Solitaire), and experiential (Via Riyadh) ones, it is clear that there is room for the unity of space, supply and time that the department store format offers, much more than just for Harvey Nichols Riyadh and Al Rubaiyat.

Olaya Mall, Panorama Mall: two very different ways of being “traditional” 

Olaya Mall is located in Riyadh's bustling Al Olaya district, a central business and retail hub of the Saudi capital which also includes the Kingdom Centre, just across the road, Al Rubaiyat, a fashion and lifestyle department store, and, a little further, Al Faisaliah mall (where Harvey Nichols is located) and the Panorama mall (where Etre, a fashion and luxury multi-brand store, is located).

Launched in 2000 by the AlMogren group, it was the first mall in Saudi Arabia to introduce international brands in the city, two years before the Kingdom Centre. It is now recognised for its family-friendly atmosphere, offering an appropriate environment for shopping and dining. It has a large food court that includes a mix of local and international fast-food chains, dedicated children's play areas, and shops that mostly showcase women’s apparel.

While, in theory, the mall benefits from its proximity to luxury hotels and business centres, making it accessible and attractive to locals and tourists, its current state and design make this unlikely.

Although the building remains pristine, its dated design betrays the era in which the mall was conceived. Several tenants wisely operate double façades—opening both to the parking lot and the interior concourse—but the shopfronts march down unbroken, monotonous corridors with no pauses for surprise or variety. Almost every retailer sells one thing—women’s dresses—so the offer has narrowed over time, appealing to a single product category and a single audience. The result is a mall frozen in the early phase of Western-style retail in the Gulf, a stark counterpoint to the more progressive Kingdom Centre just across the road.

Located 10 minutes away by car from Al Olaya, and a stone's throw from the King Khalid Grand Mosque, Panorama Mall represents another way of looking at tradition in the mall business. It was opened in 2010 on 130,000 sqm, developed by Mohammad Al Habib (a real estate company founded in 1972 with a track record of 50 projects in KSA) for the account of Aswaq Almustaqbal Company, the owner until 2020, when all stakes were sold to Borouj International Company for €23m. Leasing company Hamat Holding, is managing the property.

Panorama Mall is known for its panoramic facade, reinforcing its status as a visual landmark. The retail mix at Panorama Mall is robust and diverse, featuring over 200 stores that cater to a broad audience: luxury brands such as Louis Vuitton, Gucci, Chopard, and Rolex share the space with high-street names like Zara, H&M, and Marks & Spencer. Speciality boutiques and high-end jewellers enhance the shopping experience, while the presence of the Danube Hypermarket, Jarir Bookstore, various electronics and home décor complete the offer.

What makes it unconventional (and, from our point of view, exaggerated) is the amount of space dedicated to experience[2]. While every retailer in the world knows the value of such space these days, Panorama Mall offers an experience on steroids: not less than 7,325 sqm is dedicated to one of the region's largest Sparky’s indoor amusement parks, attracting families in crowds. The mall also houses an AMC cinema and a food court oriented towards international fast food, conveniently located near the amusement zone. As a consequence, while such a heavy focus on family entertainment creates an sizeable traffic, it also seems disconnected from some parts of the mall, such as the luxury section with surprising adjacencies (Dior near Steve Madden, Chanel near Tumi), not to mention Etre, a multi-brand store that used to be fashion oriented and which now only focuses on home.

Panorama’s ambition mirrors its façade: broad, impressive, but unfocused. Families flock to Sparky’s, teens queue for AMC blockbusters, and luxury shoppers weave past sneakerheads under one roof that tries to please everyone. Yet history has shown that malls that trade distinction for dilution eventually lose both edge and audience. Panorama Mall may still glitter in 2025 Riyadh, but without a more deliberate point of view, it could be rehearsing the very script that closed so many U.S. anchor stores before the final curtain fell.

Olaya and Panorama stand side by side in this “traditional mall” section because—despite their opposite tactics of monotony versus maximalism—both cling to the same first-generation, one-size-fits-all template that newer retail formats have already begun to abandon.

Raising the bar: Cenomi Nakheel Mall  

Opened in 2014 by Arabian Centres (a Riyadh-based real estate company, developer, owner, and operator of shopping malls in the Middle East trading under the Cenomi Centres brand), Al Nakheel Mall rapidly became a local reference. In 2015, the mall received awards from the International Council of Shopping Centres (ICSC) in the New Media/emerging Technology Marketing and Design and Development categories.

Cleverly situated along major roads leading into Riyadh and relatively far away from the Olaya catchment zone (which is crowded with four malls), Al Nakheel Mall attracts more than 200,000 visitors weekly, including many Riyadh residents, thanks to its visitor-friendly, single-level design spanning 370,000 square meters as well as a location ensuring easy access by car or private car services like Uber or Careem.

The mall's architecture is noteworthy for its walkways and design, which incorporate open spaces and intimate corners, allowing for a comfortable shopping experience. Accessible through eight gates, it is composed of two large wings, hinged on a central food court (relatively smaller than other malls). It includes family activities on the first floor: Muvi Cinemas, Sparky's, and Playnation playgrounds. The wings, which are inviting and perfectly maintained, are large enough to have stands in the middle, either for small accessories or refreshments.

The retail space boasts a selection of high-end luxury brands such as Chanel and Gucci, alongside popular international chains like Zara (located in a spectacular and central store) and H&M and a surprising array of Turkish brands (LC Waikiki, Kahve Dünyası…). Overall, the offer is lifestyle- and aspirational-oriented, and complete with experiences (a Jamie Oliver cooking school or an Australian restaurant).  Essential services such as banks, pharmacies, and customer service desks further enhance its functionality and visitor convenience.

Despite a significant number of hoardings hiding empty units, the mall felt crowded during the visit, and many shopping bags were in sight. Compared to the two previous malls, this one felt modern, well-curated, and organised, competing with other successful regional generalist malls[3].

Going upscale: Kingdom Centre, Solitaire, Al Faisaliah 

The Kingdom Centre, a symbol of modern Riyadh at the heart of the city in Olaya, was designed by Ellerbe Becket and completed in 2002. It is an iconic structure distinguished by its almond-shaped tower, which reaches a height of 302 meters, making it one of the tallest buildings in the city (and the third-tallest building with a hole worldwide). The tower's design is characterised by an inverted catenary arch, capped by a glass skybridge that offers panoramic views of Riyadh.

This mixed-use complex includes commercial, residential, and retail spaces. The tower comprises office spaces, a five-star Four Seasons Hotel, and luxury residences. It also includes the King Abdullah Mosque on the 77th floor, the world's highest mosque from ground level. At the tower's base, two symmetrical wings extend east and west, encompassing landscaped public gardens and a mall that spans 56,000 square meters across three levels.

This mall is a key feature of the complex and was inaugurated in 2001. It houses 161 stores, including a wide range of luxury brands, with a general design meticulously tailored to an affluent clientele. Interestingly, while in the past the mall housed a Debenhams and a Saks Fifth Avenue store, both of which closed a long time ago, only mono-brand stores are present, without any non-luxury anchor. During the visit, the mall was being revamped with quite a number of hoardings hiding units and part of the structure. Another notable feature is the food court on the top floor, “Al Mamlaka Social Dining”, where customers must pay an entry fee.

Solitaire, located in another catchment area up north in the city (near the Kingdom Hospital and the Financial District), is a new multi-use lifestyle complex covering over 65,000 square meters. Inspired by a geode, its design features an angular stone façade that evolves into a crystalline interior, creating a striking experience.

The complex includes three aboveground levels dedicated to retail, food and beverage, entertainment, wellness, and sports and three levels of basement parking. This layout caters to a diverse clientele, including high-net-worth individuals and expatriates living in nearby residential compounds. The North Plaza features fast-fashion brands, casual dining, and entertainment, while the South Plaza focuses on luxury retail and fine dining.

Sustainability is integrated into the mall design through wind towers for climate control, using mechanical fans to circulate air and offering a passive cooling solution. Similarly, water features, including misting elements, contribute to a cooler environment. Therefore, it is unsurprising that such a commitment has encouraged the Chalhoub Group to team up by bringing in a selection of luxury brands it operates in joint ventures, including Loewe, Celine, Fendi, or Tiffany & Co.

The most surprising during the visit was the fact that, even though almost no boutiques were open by then, with scaffoldings in the middle of the passageways and a strong smell of glue, the mall was already crowded with passers-by and customers sitting at the few restaurants (including French Paris Society brand Perruche) and cafés already in operations (including Ladurée, Patchi or luxury chocolate maker Bateel). While the opening date was set for a few weeks later, locals explained that this showed the enthusiasm of the KSA clientele for new experiences and places (also suggesting that this enthusiasm can wane as fast as it arrives).

Interestingly, both Kingdom Centre and Solitaire share a notable characteristic distinguishing them from traditional mall developments worldwide: the absence of department store anchors. While these destinations excel in creating immersive luxury environments through curated mono-brand boutiques and experiential elements, neither has incorporated the retail stability of flagship department stores or hypermarket. This choice reflects a local retail aspect but may also present challenges for consistent foot traffic beyond the initial excitement.

This is not the case at Al Faisaliah Mall, not far from Kingdom Centre. After a brief stint as Mode Mall, it re-emerged under its original name to align with Saudi Arabia's Vision 2030. The mall covers a retail area of 35,600 square meters within the Al Faisaliah Centre complex. This mixed-use development also houses the 267-meter Al Faisaliah Tower (for a moment, the tallest in the country, before losing its crown to Kingdom Centre) and a five-star Mandarin Oriental hotel, which is directly connected. The mall's architectural design, crafted by Foster + Partners, emphasises modern aesthetics with a glass atrium offering panoramic city views across three levels.

A major point of differentiation is that the mall houses a Harvey Nichols store in addition to the usual brands (see below). The mall was painstakingly empty during the visit.

A completely different experience: VIA Riyadh 

Welcome to another planet! VIA Riyadh is a mixed-use development located far from all the other locations, adjacent to the Ritz-Carlton hotel, and includes a St-Régis hotel. This complex, inaugurated in Q2 2023, combines high-end retail, hospitality, and entertainment facilities, using local stones and drawing inspiration from the Nadji architectural approach.

The exterior of VIA Riyadh is striking, with architectural elements that evoke a sense of grandeur and opulence. The development is conceived as a fort-like structure or a mountain, with spectacular buildings that create an impressive visual impact upon arrival. Inside, the design maintains this high level of quality, featuring multiple distinct spaces that are large and elegantly staged.

VIA Riyadh is not about scale, but experience. At its heart is MWAZ, a spectacular multi-brand concept store displaying niche and rare brands. The store has high-tech displays and screens that contribute to its avant-garde presentation.

In the rest of the mall, the retail section only features 25 upscale shops, presenting international and local brands (from Brandon Maxwell to Elie Saab), art galleries (Richard Orlinski,  Phoenix Ancient Art), a robust dining scene of 17 restaurants (including UK's Sexy Fish, US’ Spago, and the French Les Deux Magots) and seven cinemas each offering unique thematic experiences. The -1 level houses a car lounge showcasing brands like Ferrari and Porsche, a concierge service, and the Via Mercato luxury food market.

VIA Riyadh is designed as a human-scale luxury mall, creating an experience centred around relaxation and high-end retail. The absence of a dominant anchor store, apart from Zegna and MWAZ, emphasises a curated approach to luxury shopping. However, questions remain about the foot traffic and how the destination qualifies its market appeal, given its location outside the city near gated compounds. The place was empty during the visit.

And what about department stores? 

While malls are omnipresent (up to 18 in Riyadh only), the department store format is not that common.

Harvey Nichols at Al Faisaliah Mall is the most prominent representative of this format. As visitors enter the mall, they are greeted by a prominent storefront featuring large display windows and calls to action for click-and-collect. This creates an inviting entrance adjacent to brands like Boss and Cartier.

The ground floor is dominated by a strong emphasis on fragrances, with a series of branded concept stores dedicated to perfumes. Visitors encounter a tunnel-like layout where brands such as Dior and Guerlain are creatively interwoven, a rarity.

The basement level was undergoing renovations at the time of visit. The first floor displayed a well-curated selection of women’s RTW brands within a concept unique to Harvey Nichols. The RTW area is divided into two main sections near the escalator, offering a luxurious ambience akin to an apartment setup, transitioning smoothly into a more generic yet well-executed section. This area features a selection of high-end brands, stopping just short of ultra-luxury. A dedicated zone for local designers presents shoes and accessories, though this section remains underdeveloped compared to others.

On the second floor, the focus shifts to children's luxury multi-brand concepts and leisure activities. This includes kid’s brands not featured in the women's sections. The central sale areas are effectively designed, with the athleisure zone featuring brands like Veja and Axel Arigato, a corner displaying The Edit LDN concept (an original Harvey Nichols London feature), and a transition into home goods and streetwear collections. Nearby, the men's section is somewhat compact, featuring a concept store, sneaker laundry, design area, and a t-shirt bar towards the back, all looking cluttered. Probably due to space issues, an area on that floor is dedicated to a couture-like women's RTW salon, complete with shoes, bags, and dresses from brands such as Oscar de la Renta. The store becomes somewhat chaotic toward the back, with a t-shirt bar adding to the eclectic mix.

While the store was impeccable during the visit, it was also very empty, with VM employees ironing products on the sales floor and staff dressed casually, which fostered an approachable atmosphere but could also lead to confusing them with visitors. The omnipresence of promotional material for online shopping and up to 60% discounts also suggested that the business was not so fluid.

Al Rubaiyat is a concept standing halfway between the department store format and a concept store, and is located across the road in front of Kingdom Mall. Originally a company from Jeddah, Al Rubaiyat opened the Riyadh location in 2019, spanning 2,100 sqm, with a concept crafted by Virgile + Partners. It focuses primarily on luxury womenswear, showcasing brands such as Gucci, Balenciaga, and Saint Laurent.

A notable security measure was immediately apparent upon entering: a guarded entrance where customers had to leave their bags (a feature not seen elsewhere during the visits). The heightened security measures suggested a proactive stance on preventing theft, which may reflect broader concerns about inventory loss or a strategic effort to enhance the shopping experience by ensuring a safe and orderly environment.

The store was in the midst of a sales event, as indicated by the ubiquitous sales signs and densely packed clothing racks. The store layout was somehow confusing, with kids' offerings intertwined with women’s RTW and the dressy part upstairs and quite visible: anyone looking for evening gowns would be immediately spotted by other visitors.

While the store was beautiful, it also felt packed with products and only crowded with hostile salespersons more occupied with preventing theft than offering their services. While the timing may not have been the best (at the end of the day), this visit was the most unconvincing of the whole tour.

It seems that Riyadh’s two flagship department-store experiments (Harvey Nichols and Al Rubaiyat) expose both the promise and the peril of a retail format that has not yet truly taken root in the Kingdom. Each strives for curated luxury, yet both compensate for thin footfall with deep markdowns, dense merchandising, and conspicuous security in Al Rubaiyat’s case. The result is a shopping experience that feels more guarded than guided, more promotional than aspirational.

Today's Riyadh retail landscape is defined by malls that either cling to the comfort of tradition or chase the latest trends with maximalist ambition. Across the spectrum—from the single-category monotony of Olaya Mall, to the entertainment-driven sprawl of Panorama Mall, to the carefully curated luxury of Kingdom Centre and VIA Riyadh—a common thread emerges: the absence, or underperformance, of true department stores as anchor retail experiences.

The limited experiments so far—Harvey Nichols and Al Rubaiyat—have only scratched the surface of what a department store could mean for Riyadh. Both stores display flashes of curation and aspiration but are hobbled by a reliance on deep discounts, dense merchandising, and a guarded, transactional atmosphere. Far from the bustling, service-rich hubs in other world capitals, these stores remain peripheral, their value yet to be fully articulated or realised.

Yet, beneath the surface, the opportunity remains. While Saudi shoppers have grown accustomed to the convenience and spectacle of malls, the department store format—when reimagined—offers something that no mall or boutique can replicate: an all-under-one-roof experience built on true curation, seamless service, and coherent storytelling across categories and brands. In an environment where retail destinations either dilute their identity or fragment their offer, a department store with a clear point of view can become an oasis of discovery, personalisation, and hospitality.

For a new generation of Saudi consumers—curious, globally connected, and eager for differentiated experiences—a department store that embraces curation, brings together international and local brands, and delivers best-in-class services (from personal shopping to seamless omnichannel integration) could unlock a form of value they do not yet suspect. It is not about nostalgia but anticipation: meeting needs and desires that have yet to be fully expressed. We believe that in Riyadh, the space is still open for a department store that dares to define itself, not by what has been tried and failed, but by what has not yet been imagined.

[1] Vision 2030, launched in 2016 under the leadership of Crown Prince Mohammed bin Salman, is the country’s flagship development plan. It is a comprehensive blueprint aimed at transforming Saudi Arabia’s economy, society, and government, and is structured around three main pillars: a vibrant society, a thriving economy, and an ambitious nation. The plan includes 96 strategic objectives, focusing on economic diversification, reducing dependence on oil, empowering citizens, fostering investment, and enhancing the Kingdom’s global role.

[2] And yet, the IADS is a fervent supporter of experience in retail.

[3] Cenomi Centres is not a rookie: the company operates 22 malls in KSA, including the Mall of Arabia in Jeddah and the Mall of Dharan among the most iconic ones alongside Nakheel Mall Riyadh.

Credits: IADS (Selvane Mohandas du Ménil)