RIYADH: Saudi Arabia’s retail sector has seen an increase in space and a strong recovery in domestic demand during the first half of 2022 as pandemic restrictions have eased, a report by the real estate management firm JLL showed.
With an addition of 55,000 square meters of gross leasable area, Riyadh’s total retail stock stood at 3.3 million sq. m., whereas Jeddah’s retail space increased by 16,000 sq. m. to 1.7 million sq. m., according to a statement.
The figure for Makkah rose by 17,500 sq. m. to 1.4 million sq. m. in the first half of the year, it added.
“For the first time in two years after the easing of pandemic restrictions, Saudi Arabia is allowing over one million pilgrims to perform Hajj this month,” Khawar Khan. head of research, MENA and Turkey at JLL, said.
“Not only is this expected to provide a boost to Makkah’s retail sector, but it should also help the Kingdom to meet its target of tripling foreign visitors to 12 million this year,” he added.
During the first five months of 2022, Makkah’s hospitality sector saw its occupancy rate increase almost three-fold, hitting 60 percent, up from 21 percent in the same period of 2021.
This is attributed to the easing of restrictions and changes to visa rules that led to a sharp increase in the number of pilgrims visiting the Kingdom to perform Umrah, especially during the month of Ramadan.
Indicating growth in private non-oil activity for the year to date, Saudi Arabia's Purchasing Managers’ Index reading in June was higher than May, with a PMI of 57 and 55.7, respectively.
