Majid Al Futtaim unit to invest $5bn in Riyadh project

• Mixed-use project planned
• Construction begins in 2026
• Also upgrading Mall of the Emirates

Dubai-based Majid Al Futtaim Properties is set to develop a SAR17.5 billion ($4.7 billion) mixed-use project in Riyadh as part of its strategy to expand its regional real estate footprint.

The project will cover ​​850,000 sq m, Arabic news portal Al Arabia reported, quoting CEO Ahmed El Shamy. He said engineering designs are in progress, adding that the tenders and construction are expected to commence in early 2026.

The company, which is the real estate division of Dubai retail conglomerate Majid Al Futtaim, paid the last $100 million instalment to acquire the land bank last year, El Shamy said.

El Shamy said that Saudi Arabia’s $1.5 trillion-plus economy was a key driver of long-term real estate investment appeal.

Property prices in the kingdom in the first quarter of 2025 rose 4.3 percent year on year, with residential prices up 5 and commercial prices up 2.5 percent.

• Majid Al Futtaim reports 6% profit drop as sales slow
• Global trade war prompts Gulf construction reassessment
• Dubai’s Majid Al Futtaim closes Carrefour in Oman

Majid Al Futtaim will also invest AED5 billion ($1.4 billion) to renovate the Mall of the Emirates, which opened in Dubai in November 2005.

The upgrade will add 20,000 sq m of retail space and 100 new stores across luxury, fashion and lifestyle categories. The renovation work is already under way after Majid Al Futtaim allocated just over AED1 billion to the project.

The renovation also includes a complete revamp of the West End district, including its first outdoor food and beverage courtyard.

Infrastructure improvements include rolling out a Parkin barrierless parking system, improved access roads and bridge upgrades in collaboration with Dubai’s Road and Transport Authority, expected to be completed by September.

AGBI reported last year that rental rates in Dubai malls had increased about 15 percent year on year due to a lack of new supply and high demand from shoppers.