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Campaign ME
24-04-2025
- Business
- Campaign ME
Saudi Arabia's marcomms revolution: A global blueprint
The Saudi Arabian marcomms landscape has undergone a remarkable metamorphosis in the past decade, a transformation as dramatic as the giga-projects reshaping its skyline. From a traditionally oriented market to a digitally driven powerhouse, KSA's marcomms evolution is a masterclass in swift adaptation and forward-thinking strategy. This isn't just about keeping pace; it's about setting the pace. Ten years ago, the sector was dominated by conventional media. Today, with a staggering 99 per cnet internet penetration, Saudi Arabia is a digital marketing crucible. The pandemic accelerated this shift, tossing e-commerce and digital communications into the mainstream. The projected $3.14bn advertising market by 2030, growing at a 5.61 per cent compound annual growth rate (CAGR), underscores this digital revolution. It's a shift towards data-driven, personalised campaigns that resonate deeply with a tech-savvy population. Vision 2030 is the cornerstone of this transformation. It's not just a blueprint; it's a call to action. Projects like NEOM, The Red Sea Project, and Qiddiya demand innovative marketing approaches that blend cutting-edge technology with deep cultural understanding. NEOM, for example, isn't just a city; it's a vision of the future that requires a narrative that resonates both locally and globally. However, success in this dynamic market hinges on local know-how. A 2024 study revealing that 62 per cent of foreign companies partnering with local entities achieve faster market entry speaks volumes. It's what I call 'glocalisation' – thinking globally while acting locally. Glocalisation – the buzzword isn't just a marketing tactic here; it's a necessity. You can't simply transplant international campaigns and expect them to resonate. This is especially crucial when engaging with Saudi youth, a demographic that's both globally connected and deeply rooted in their heritage. Influencer marketing has surged, becoming a potent tool for brands. Yet, it's not about chasing follower counts. It's about aligning with influencers who embody the values of both the brand and Saudi society. This nuanced approach requires a new breed of marketing professionals who understand this complex landscape. Technology, particularly AI, is reshaping the marcomms landscape. From chatbots to predictive analytics, AI is enabling more targeted and efficient campaigns. The Saudi government's investment in media initiatives, including a communications academy, demonstrates a commitment to nurturing local expertise in cutting-edge marketing technologies. Interestingly, traditional media is also experiencing a renaissance, albeit with a modern twist. The opening of cinemas has created new advertising avenues, while digital billboards now offer dynamic, context-aware messaging. Saudi Arabia is also proactively reaching out internationally, showcasing its rich cultural heritage. Consider the Saudi orchestra performing globally, Historic Jeddah taxis making a splash in London, or the Diriyah Company's immersive event at Outernet London, offering a taste of Saudi hospitality and history. These initiatives create a sense of belonging and cultural exchange, demonstrating Saudi Arabia's openness and global vision. And let's commend brands that have navigated this cultural landscape successfully. Nike, for instance, with its 'Pro Hijab' campaign, demonstrated a deep understanding of Saudi culture, creating a sense of belonging and relatability that resonated profoundly with its target audience. They didn't just sell a product; they celebrated the aspirations of Saudi women, fostering a genuine connection. Looking ahead, the Saudi marcomms industry stands at an exciting crossroads. The challenge – and opportunity – lies in balancing innovation with cultural sensitivity, global best practices with local insights. Success will depend on navigating this complex landscape with agility and a profound understanding of the local culture. The Saudi marcomms revolution is far from over. As the Kingdom marches towards Vision 2030, the opportunities for bold, innovative marketing have never been greater. The question isn't just about seizing these opportunities but doing so with wisdom, respect, and a genuine desire to connect. Are we ready to ride this wave? By Amna Ali, Senior Communications Manager, TRACCS KSA
Yahoo
17-04-2025
- Business
- Yahoo
Saudi Arabia Commercial Construction Industry Report 2025: Driven by Vision 2030, the Market Sees Significant Growth through Government Investments
Major projects like NEOM and Qiddiya stimulate demand, alongside relaxed foreign investment laws and PPPs. Challenges include supply chain disruptions and material costs, while trends favor mixed-use developments and sustainability. Key players include Kabbani Construction Group and Nesma & Partners. Saudi Arabian Commercial Construction Market Dublin, April 17, 2025 (GLOBE NEWSWIRE) -- The "Saudi Arabia Commercial Construction Market, By Region, Competition, Forecast and Opportunities, 2020-2030F" has been added to offering. The Saudi Arabia Commercial Construction Market, valued at USD 72.1 billion in 2024 and projected to reach USD 98.61 billion by 2030, is expanding robustly with a CAGR of 5.2% over the forecast period. Driven by the ambitious Vision 2030 initiative, which focuses on economic diversification and reducing oil dependency, considerable government investments in infrastructure, tourism, and urban development are propelling growth in commercial real estate, retail, office buildings, and mixed-use developments. Prominent projects such as NEOM, The Red Sea Project, and Qiddiya are drawing significant domestic and international investments, heightening demand for advanced construction solutions. Market growth is further spurred by regulatory changes and the increase of public-private partnerships (PPPs). The surge in e-commerce, coupled with evolving consumer demands, underscores the necessity for logistics hubs and smart commercial spaces. Emphasizing sustainability, developers are incorporating green building practices and advanced technologies, aligning with global environmental standards. The influx of expatriates and the establishment of regional business headquarters in Saudi Arabia fuel the demand for premium office spaces, hotels, and retail outlets. Despite challenges such as supply chain disruptions and fluctuating material costs, the market remains resilient, bolstered by strong governmental support and active private sector participation, indicating sustained growth prospects. Key Market Drivers: Vision 2030 is a primary catalyst, emphasizing infrastructure development projects like NEOM, The Red Sea Project, Qiddiya, and King Salman Park, aiming to establish Saudi Arabia as a premier global business and tourism hub. The relaxation of foreign investment laws and encouragement of PPPs have attracted substantial foreign direct investment, further stimulating market expansion. Moreover, enhanced government spending on transportation networks and smart city initiatives is drawing global business interest. Tourism and Hospitality Development: A significant USD 10 billion tourism initiative is anticipated to bolster tourism, fostering the construction of resorts, hotels, and leisure facilities to accommodate rising visitor numbers. Key Market Challenges: Disruptions in supply chains and rising material costs remain pressing challenges, exacerbated by global events impacting the import of construction materials. Investment in local manufacturing and collaboration with regional suppliers are strategies employed to counteract these issues. Persistent inflationary pressures necessitate robust procurement and cost management strategies to mitigate risks. Key Market Trends: An increased focus on mixed-use developments reflects changing consumer preferences and urbanization trends, aligning with Vision 2030 goals. These projects, such as King Salman Park and Diriyah Gate, integrate residential, retail, and entertainment spaces, enhancing convenience and appealing to both residents and businesses. Key Market Players: The market features leading companies such as Kabbani Construction Group, Almabani General Contractors, AlKifah Contracting Company, and others, continuing to shape the landscape through innovation and strategic investments. Key Attributes: Report Attribute Details No. of Pages 81 Forecast Period 2024 - 2030 Estimated Market Value (USD) in 2024 $72.1 Billion Forecasted Market Value (USD) by 2030 $98.61 Billion Compound Annual Growth Rate 5.2% Regions Covered Saudi Arabia Key Topics Covered: 1. Product Overview1.1. Market Definition1.2. Scope of the Market2. Research Methodology2.1. Objective of the Study2.2. Baseline Methodology3. Executive Summary4. Voice of Customer5. Saudi Arabia Commercial Construction Market Overview6. Saudi Arabia Commercial Construction Market Outlook6.1. Market Size & Forecast6.2. Market Share & Forecast7. Riyadh Commercial Construction Market Outlook7.1. Market Size & Forecast7.2. Market Share & Forecast8. Makkah Commercial Construction Market Outlook8.1. Market Size & Forecast8.2. Market Share & Forecast9. Madinah Commercial Construction Market Outlook9.1. Market Size & Forecast9.2. Market Share & Forecast10. Jeddah Commercial Construction Market Outlook10.1. Market Size & Forecast10.2. Market Share & Forecast11. Tabuk Commercial Construction Market Outlook11.1. Market Size & Forecast11.2. Market Share & Forecast12. Eastern Province Commercial Construction Market Outlook12.1. Market Size & Forecast12.2. Market Share & Forecast13. Rest of Saudi Arabia Commercial Construction Market Outlook13.1. Market Size & Forecast13.2. Market Share & Forecast14. Market Dynamics14.1. Drivers14.2. Challenges15. Market Trends and Developments16. Company Profiles16.1. Kabbani Construction Group16.2. Almabani General Contractors16.3. AlKifah Contracting Company16.4. Nesma & Partners Contracting Company Ltd.16.5. AL-AYUNI Company16.6. Construction & Planning Co. Ltd.16.7. Contracting & Construction Enterprises Ltd.16.8. Binladen Group Global Holding Company16.9. Al-Rashid Trading & Contracting Co.16.10. Umm Al Qura for Development & Construction Company17. Strategic Recommendations For more information about this report visit About is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends. Attachment Saudi Arabian Commercial Construction Market CONTACT: CONTACT: Laura Wood,Senior Press Manager press@ For E.S.T Office Hours Call 1-917-300-0470 For U.S./ CAN Toll Free Call 1-800-526-8630 For GMT Office Hours Call +353-1-416-8900Sign in to access your portfolio
Trade Arabia
16-04-2025
- Business
- Trade Arabia
Saudi retail real estate sector undergoing key transformation
Saudi Arabia's retail real estate sector is undergoing a transformation, driven by the country's Vision 2030 initiative, economic diversification efforts, and an evolving consumer landscape. The outlook for 2025-2026 remains optimistic, with strong demand anticipated due to factors such as population growth, increasing tourism, and changing consumer preferences, according to top ratings agency S&P Global. The growth path for retail real estate in Saudi Arabia is looking good for 2025-26. However, the sector is also facing challenges, including oversupply risks and evolving retail formats that could weigh on rental rates and real estate landlords' profitability amid high capital spending, said the ratings agency. Additionally, lower oil prices and market volatility amid escalating global trade tensions and a fragmented geopolitical environment could dampen government spending and non-oil economic growth in Saudi Arabia, it stated. S&P Global said the government's commitment to infrastructure development, the rise of mega projects, and the expansion of international brands into the Saudi market will boost demand for retail spaces. Riyadh, Jeddah, and other key cities are seeing a surge in new retail developments, ranging from shopping malls and entertainment complexes to mixed-use developments that integrate retail, hospitality, and residential spaces. An influx of tourists, driven by Saudi Arabia's push to become a tourism hub, will further boost retail sales and attract investors and developers, it stated. The government's foreign investment policies - such as allowing 100% foreign ownership - could also help grow the sector. Saudi Arabia's Vision 2030 aims to diversify the economy beyond oil, with a strong focus on retail, tourism, and entertainment. The plan includes ambitious projects such as NEOM, The Red Sea Project, and AlUla, which are intended to attract millions of visitors, boosting retail demand. Saudi Arabia's per capita income is strong, and consumer spending on retail and entertainment is expected to grow given the dominance of youth in the growing population, said S&P Global. The country's gradual transformation toward being a more socially liberal, entertainment-friendly society is leading to higher footfall in malls and retail destinations, it stated. "While the overall market outlook remains positive, the sector will also need to navigate challenges such as changing consumer behavior, e-commerce growth, and most importantly the potential effects of oversupply," the ratings agency said in its review. Additionally, Saudi Arabia's consumer spending and sentiment could be materially affected by weaknesses in oil prices, which remain volatile given trade tensions, it stated. S&P Global said the Saudi retail real estate market was witnessing a wave of new supply, with several large-scale developments set to open in 2025-2030. According to Knight Frank's 2024 Saudi Arabia Giga Projects Report, 7.4 million sq m of new retail real estate is under development, including at Diriyah Gate, The Red Sea Project, and NEOM. The volume of retail projects in the pipeline raises the risk of potential oversupply, in our view, particularly in secondary locations where demand may not be sufficient to absorb new retail spaces, it added. With the volumes of retail space entering the market, rental rates could face downward pressure. Key factors influencing rental rates are location, competition, and asset quality, among others. With new malls and retail centers in the pipeline, landlords will likely offer competitive leasing terms to attract tenants. Global real estate expert Knight Frank had in its forecasts said Riyadh's supply would grow by 50% by 2027 and Jeddah's by 75% over the same period. This rapid growth could lead landlords to provide rental discounts, revenue-sharing lease models, and other incentives to maintain occupancies. S&P Global pointed out that retailers are increasingly prioritizing foot traffic and tenant mix over sheer size. While prime locations in Riyadh and Jeddah will likely maintain stable rental rates due to strong demand, secondary locations might see a drop in rental values due to oversupply. Traditional retail offerings face the need to evolve to meet changing consumer preferences. The demand for large anchor stores is declining as Saudi consumers increasingly shift toward digital shopping and experience-driven retail, stated the top raatings agency.
Arab News
16-04-2025
- Business
- Arab News
Saudi retail real estate outlook strong on tourism and Vision 2030, S&P says
RIYADH: Saudi Arabia's retail real estate market is poised for growth in the near term, driven by population growth, expanding tourism, and economic diversification efforts under the Vision 2030 initiative, according to S&P Global. In its latest report, the credit rating agency said that ongoing mega-projects and the expansion of international brands are expected to propel further demand for retail space across the Kingdom. This comes as Saudi Arabia steps up efforts to become a global hub for tourism and business by the end of the decade, with the Real Estate General Authority projecting the property market to reach $101.62 billion by 2029, driven by an anticipated compound annual growth rate of 8 percent from 2024. 'The growth path for retail real estate in Saudi Arabia is looking good for 2025-2026. The government's commitment to infrastructure development, the rise of mega projects, and the expansion of international brands into the Saudi market will boost demand for retail spaces,' S&P Global said. The report aligns with findings from real estate advisory JLL, which in March forecast a shift in the Kingdom's retail market toward 'experiential formats' and a strong growth outlook for 2025. Riyadh, Jeddah, and other major cities are witnessing a wave of new retail developments, ranging from malls and entertainment venues to mixed-use spaces combining residential, hospitality, and retail components, S&P noted. Driving factors The US-based agency added that the strong influx of tourists into the Kingdom and the government's foreign investment policies — such as allowing 100 percent foreign ownership — will also help the retail real estate sector grow and evolve. The report cited the Kingdom's major developments — including NEOM, The Red Sea Project, and AlUla — as key drivers for retail real estate expansion. 'Saudi Arabia's per capita income is strong, and consumer spending on retail and entertainment is expected to grow, given the dominance of youth in the growing population. The country's gradual transformation toward being a more socially liberal, entertainment-friendly society is leading to higher footfall in malls and retail destinations,' S&P Global said. In addition to international tourism, the domestic retail environment is evolving, with open-air and boulevard-style outlets gaining popularity. According to JLL, open-air boulevard-type retail is gaining popularity in the Kingdom, while traditional mall concepts are facing declining occupancy rates due to their standard 'closed mall' designs and generalized retail offerings. S&P Global added that growing urbanization — particularly among the youth — is lifting demand for modern retail formats such as lifestyle centers and high-end shopping malls. 'The country has become a major target market for international brands in the fashion, luxury, and food and beverage segments. Global retailers are expanding their footprints in Saudi Arabia, leading to increased demand for premium retail spaces,' the agency noted. It added that upcoming high-profile events, including Expo 2030 and the 2034 FIFA World Cup, are likely to boost demand further. Although the affinity toward e-commerce shopping is rising in the Kingdom, the demand for physical stores that offer in-store experiences is also expected to grow in the coming years. S&P Global said that people in the Middle East region consider malls to be spaces for entertainment, recreation, dining, and social interaction, and as a result, the retail real estate sector will experience growth, similar to the e-commerce industry. Supply pressures ahead Despite the positive outlook, S&P Global flagged several risks that could weigh on the sector. These include oversupply, changing retail preferences, and pressure on rental yields amid elevated capital expenditure by landlords. 'The volume of retail projects in the pipeline raises the risk of potential oversupply, in our view, particularly in secondary locations where demand may not be sufficient to absorb new retail spaces,' said S&P Global. Rental rates could also face downward pressure as the volume of retail real estate space increases. S&P Global highlighted that additional factors like location, competition, and asset quality could also affect rental rates in the retail property space. According to Knight Frank's 2024 Saudi Arabia Giga Projects Report, 7.4 million sq. meters of new retail real estate are under development, including spaces at Diriyah Gate, The Red Sea Project, and NEOM. Moreover, lower oil prices, market volatility, escalating global trade tensions, and a fragmented geopolitical environment could dampen government spending and non-oil economic growth in the Kingdom. Citing the Knight Frank report, S&P Global noted that Riyadh's real estate supply is expected to grow by 50 percent by 2027, while Jeddah's will increase by 75 percent during the same period. 'This rapid growth could lead landlords to offer rental discounts, revenue-sharing lease models, and other incentives to maintain occupancies. Retailers are increasingly prioritizing foot traffic and tenant mix over sheer size,' the analysis said. It added: 'While prime locations in Riyadh and Jeddah will likely maintain stable rental rates due to strong demand, secondary locations might see a drop in rental values due to oversupply.'
Zawya
16-04-2025
- Business
- Zawya
Saudi retail real estate sector undergoing key transformation
Saudi Arabia's retail real estate sector is undergoing a transformation, driven by the country's Vision 2030 initiative, economic diversification efforts, and an evolving consumer landscape. The outlook for 2025-2026 remains optimistic, with strong demand anticipated due to factors such as population growth, increasing tourism, and changing consumer preferences, according to top ratings agency S&P Global. The growth path for retail real estate in Saudi Arabia is looking good for 2025-26. However, the sector is also facing challenges, including oversupply risks and evolving retail formats that could weigh on rental rates and real estate landlords' profitability amid high capital spending, said the ratings agency. Additionally, lower oil prices and market volatility amid escalating global trade tensions and a fragmented geopolitical environment could dampen government spending and non-oil economic growth in Saudi Arabia, it stated. S&P Global said the government's commitment to infrastructure development, the rise of mega projects, and the expansion of international brands into the Saudi market will boost demand for retail spaces. Riyadh, Jeddah, and other key cities are seeing a surge in new retail developments, ranging from shopping malls and entertainment complexes to mixed-use developments that integrate retail, hospitality, and residential spaces. An influx of tourists, driven by Saudi Arabia's push to become a tourism hub, will further boost retail sales and attract investors and developers, it stated. The government's foreign investment policies - such as allowing 100% foreign ownership - could also help grow the sector. Saudi Arabia's Vision 2030 aims to diversify the economy beyond oil, with a strong focus on retail, tourism, and entertainment. The plan includes ambitious projects such as NEOM, The Red Sea Project, and AlUla, which are intended to attract millions of visitors, boosting retail demand. Saudi Arabia's per capita income is strong, and consumer spending on retail and entertainment is expected to grow given the dominance of youth in the growing population, said S&P Global. The country's gradual transformation toward being a more socially liberal, entertainment-friendly society is leading to higher footfall in malls and retail destinations, it stated. "While the overall market outlook remains positive, the sector will also need to navigate challenges such as changing consumer behavior, e-commerce growth, and most importantly the potential effects of oversupply," the ratings agency said in its review. Additionally, Saudi Arabia's consumer spending and sentiment could be materially affected by weaknesses in oil prices, which remain volatile given trade tensions, it stated. S&P Global said the Saudi retail real estate market was witnessing a wave of new supply, with several large-scale developments set to open in 2025-2030. According to Knight Frank's 2024 Saudi Arabia Giga Projects Report, 7.4 million sq m of new retail real estate is under development, including at Diriyah Gate, The Red Sea Project, and NEOM. The volume of retail projects in the pipeline raises the risk of potential oversupply, in our view, particularly in secondary locations where demand may not be sufficient to absorb new retail spaces, it added. With the volumes of retail space entering the market, rental rates could face downward pressure. Key factors influencing rental rates are location, competition, and asset quality, among others. With new malls and retail centers in the pipeline, landlords will likely offer competitive leasing terms to attract tenants. Global real estate expert Knight Frank had in its forecasts said Riyadh's supply would grow by 50% by 2027 and Jeddah's by 75% over the same period. This rapid growth could lead landlords to provide rental discounts, revenue-sharing lease models, and other incentives to maintain occupancies. S&P Global pointed out that retailers are increasingly prioritizing foot traffic and tenant mix over sheer size. While prime locations in Riyadh and Jeddah will likely maintain stable rental rates due to strong demand, secondary locations might see a drop in rental values due to oversupply. Traditional retail offerings face the need to evolve to meet changing consumer preferences. The demand for large anchor stores is declining as Saudi consumers increasingly shift toward digital shopping and experience-driven retail, stated the top raatings agency. "We have seen this trend in the UAE as well. This shift could weigh on rental rates in traditional malls, where businesses could struggle if they fail to adapt to these trends," it added. Copyright 2024 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (
