Construction on the project is set to resume in December Completion planned for fourth quarter of 2026 RIYADH: Saudi developer Cenomi Centers has partnered with GIB Capital to launch a SR1 billion ($266.2 million) closed-end real estate fund to boost the Kingdom’s retail sector. According to the firm’s statement on Tadawul, the move aims to support the Qassim land sale program and advance the development of the U Walk Qassim Mall, located in Buraidah. Construction on the project is set to resume in December, with completion anticipated in the fourth quarter of 2026. Once finished, Cenomi Centers, also known as Arabian Centers Co., will manage and operate the 60,000 sq. meter complex, which will feature more than 135 retail stores. The growth of the retail sector is key to the Kingdom’s goal of becoming a global tourism hub. Earlier this year, the Minister of Municipal and Rural Affairs, Majid Al-Hogail, emphasized that the sector contributes 23 percent to the non-oil economy and aims to surpass SR460 billion by the end of 2024. On Oct. 7, the Riyadh-based operator of retail and lifestyle destinations in Saudi Arabia formalized its collaboration with GIB Capital to establish the Shariah-compliant real estate fund. Beyond the mall, the fund will focus on developing and marketing the surrounding land for residential, office, and leisure purposes, contributing to the broader investment vision for the region. “The land benefits from its geographic location at the intersection of major routes, including King Abdulaziz Road, which connects various parts of the city of Buraidah, which is attracting significant wider investment and urban development,” the statement said. The sale is part of Cenomi Centers’ broader strategy, which includes an SR2 billion non-core asset program launched in 2022 to enhance its financial stability and fund its growth projects. It is estimated that SR400 million will be required to complete the U Walk Qassim Mall, which is projected to generate an annual revenue of SR80 million once fully operational. GIB Capital will serve as the fund manager after receiving approval from the Capital Market Authority. In this role, it will oversee the sale of the Qassim land and help secure the necessary financing for the facilities development. Cenomi Center will be the sole unit holder of the fund, contributing in-kind assets and covering any associated costs incurred so far. GIB Capital is the investment arm of Gulf International Bank and was launched in 2008. The Kingdom is leading the Gulf Cooperation Council in terms of retail sector growth. The region is projected to grow at an annual rate of 4.6 percent between 2023 and 2028, primarily fueled by the Saudi and UAE markets, according to the investment banking advisory firm Alpen Capital. Retail sales in the GCC are expected to rise from $309.6 billion in 2023 to $386.9 billion by 2028. The UAE and Saudi Arabia are set to see expansions of 5.4 percent and 5.1 percent, respectively, reaching $161.4 billion and $139.1 billion during this period. Strengthening the retail sector is essential for Saudi Arabia as it seeks to position itself as a leading business and tourist destination, aligning with the economic diversification goals outlined in Vision 2030.