Saudi chocolate industry expands as Riyadh leads in manufacturing registrations

RIYADH: Egypt has allocated 136.3 billion Egyptian pounds ($2.8 billion) for the electricity and renewable energy sector in its 2025/2026 development plan, nearly double the 72.6 billion pounds earmarked a year earlier. 

The plan focuses on energy diversification, a greater reliance on renewables, and expanding national grid capacity to meet growing demand, the Ministry of Planning said in a statement. 

The allocation aligns with recent developments in Egypt’s power sector. On June 15, Egypt signed financial closure deals with Norway’s Scatec for a $600 million solar plant and a $1 billion wind project.  

Two weeks later, on July 1, Engie completed the 650-megawatt Red Sea Wind project ahead of schedule. Egypt has also reaffirmed its commitment to a 3,000-MW undersea cable project with Greece — a €4 billion ($4.65 billion) initiative backed by the EU to export renewable power to Europe. 

“The electricity and renewable energy sector is responsible for providing electric power to all users across various production and consumption areas,” said Rania Al-Mashat, Minister of Planning, Economic Development and International Cooperation.   

“It contributes to achieving sustainable development goals and continuously improving the quality of services provided to citizens,” she added.  

In its official report, the ministry outlined key objectives for the sector, including greater local and international integration, improved energy efficiency, and enhanced sustainability.  

Al-Mashat emphasized the sector’s impact on economic growth, noting that “the per capita share of electricity is one of the key indicators used in economic literature to measure citizens’ welfare and the competitiveness of the national economy.” 

For the 2025/2026 fiscal year, electricity and renewable energy production is expected to reach 655.6 billion pounds, with output projected to climb to 984.5 billion pounds by 2028/2029. Sector output is forecast to rise from 285 billion pounds to 430 billion pounds during the same period, reflecting annual growth rates of 15 to 20 percent. 

Public investment will account for about 73 percent of the total, with the remaining 27 percent coming from the private sector. Of the public share, roughly 45 percent will be provided by holding companies and public enterprises. 

As part of the plan, Egypt will execute three electricity projects under a debt swap agreement with Germany worth 830 million pounds, aimed at enhancing renewable energy transmission and grid capacity. 

The development blueprint also targets increasing electricity access to 99.8 percent of the population by June 2026, boosting annual generation to 235 billion kilowatt-hours, adding 1,200 MW of thermal generation capacity, and reducing transmission losses to 16.5 percent from 19.6 percent in 2023/2024. 

Egypt is also advancing efforts to establish itself as a regional energy hub. Cross-border interconnection capacity is expected to rise to 3,900 MW by 2025/2026, up from 780 MW currently. Projects include expanded links with Jordan, Libya, and Sudan, completion of the Saudi Arabia interconnection, and new agreements with Cyprus and Greece through a 1,650-km undersea cable. 

On the renewables front, the government plans to increase the share of clean energy to nearly 20 percent of total production by 2025/2026, up from 12 percent in 2023/2024. This will be achieved by expanding solar and wind capacity to 6,470 MW and allocating 2,900 sq. km of land for renewable projects. 

Al-Mashat noted that the plan “focuses on diversifying energy sources and benefiting from renewable resources, alongside enhancing energy efficiency and planning to meet future demand.”   

She added that investments will also improve the quality and accessibility of energy services for all citizens.  

Private sector participation will be encouraged through land allocations, expanded licensing for power generation and distribution, and financing support via bilateral and multilateral development partnerships. 

Ongoing development-financed projects include completion of the new Mallawi transformer station, rehabilitation of the Matariya station, and construction of two overhead transmission lines by Orascom and Al Nowais, totaling 830 million pounds under a €54 million debt swap with Germany’s KfW Development Bank. 

Additional support comes from technical assistance programs with the French Development Agency, worth 37 million and 33 million pounds respectively, for power sector reforms. The EU-funded national grid enhancement project, valued at 125 million pounds, will expand the 10th of Ramadan and Zahraa Nasr City transformer stations. 

Al-Mashat also highlighted the success of Egypt’s NWFE platform, which has mobilized $4 billion in concessional financing over the past two and a half years. These funds have facilitated the development of 4.2 gigawatts of renewable capacity, out of a 10-GW target by 2028, reinforcing Egypt’s green transition and its ambitions as a regional energy leader. 

RIYADH: Saudi Arabia is set to see lifestyle retail space in Riyadh and Jeddah expand by almost 600,000 sq. meters to 1.31 million sq. meters by 2027, reinforcing its global shopping destination ambitions. 

A new report by real estate consultancy Knight Frank showed that consumer preferences are shifting from traditional malls to mixed-use destinations blending shopping with entertainment, dining, and cultural experiences. 

The expansion coincides with the Kingdom’s plan to attract 150 million tourists annually by 2030, up from an earlier target of 100 million, spurring international brands to enter the market. 

The Real Estate General Authority projects the sector will reach $101.62 billion by 2029, supported by a compound annual growth rate of 8 percent from 2024. 

“In response to this shifting consumer behavior, lifestyle retail destinations have emerged as a much more popular choice,” said Faisal Durrani, partner – head of research for Middle East and Africa at Knight Frank. 

 

“These locations offer a combination of exciting retail, placemaking and immersive experiences that attract visitors not only for shopping but for socializing, entertainment and events,” he added.

 

With dining, outdoor spaces, art installations and interactive exhibits, Durrani said lifestyle destinations have evolved beyond malls into “vibrant community hubs.” 

In July, credit rating agency S&P Global echoed similar views, saying that international retail brands attracted by Saudi Arabia’s social and economic shifts are set to fuel real estate sector growth. 

S&P added that the Kingdom’s retail real estate sector has strong prospects, provided careful planning and market positioning are applied, helping mall owners secure long-term success. 

Riyadh leads the way 

Knight Frank said lifestyle retail space in Riyadh is projected to grow from 484,900 sq. meters to 871,200 sq. meters by 2027, driven by 12 upcoming projects, raising the total number of developments in the city to 39. 

The completion of the Al-Hamra development will add 89,230 sq. meters, offering a mix of high-end retail, dining and entertainment in a pedestrian-friendly environment. 

Riyamarche will provide a further 21,840 sq. meters, while The Bellvue project, widely touted as Riyadh’s largest master-planned mixed-use project, will add 90,000 sq. meters by 2027. 

The report said Riyadh’s lifestyle retail market demonstrates robust fundamentals, with overall occupancy at 97 percent and food and beverage units averaging 76 percent. 

Average lease rates currently stand at SR2,400 ($639.57) per sq. meter, underscoring strong demand for quality retail space in the capital. 

“The lifestyle retail scene in Saudi Arabia continues to expand, boosted by overall consumer spending, which has increased by 7 percent year-on-year to SR1.4 trillion,” said Jonathan Pagett, partner – head of retail advisory, MENA at Knight Frank. 

 

“Riyadh is at the forefront of this retail resurgence, with all of the city’s flagship lifestyle developments at 100 percent occupancy or very close to it,” he added. 

Pagett said this robust growth is expected to continue, as Saudi Arabia attracts leading global brands and taps the spending power of both tourists and residents. 

“However, competition is fierce across the Kingdom, with a strong pipeline of projects in Riyadh, Jeddah and Al-Khobar. Creating unique retail offers with new-to-market concepts is critical to maintain strong performance and high retail sales densities,” added Pagget. 

S&P Global has also raised concerns that oversupply, particularly in shopping malls, could weigh on the sector. 

Knight Frank underscored the importance of food and beverage in driving growth, pointing to the Dior Cafe pop-up in Riyadh and Ralph’s Coffee in King Abdullah Financial District as milestones in the Kingdom’s luxury retail and dining market. 

“With the luxury retail and hospitality sectors flourishing, the Kingdom is fast becoming a key location for global brands seeking to establish a footprint in the Middle East. The combination of iconic retail outlets, high-end dining, and experiential venues puts Saudi Arabia firmly on the map as a leader in lifestyle retail,” said Konstantinos Papadakis, associate partner – F&B consultancy, MENA at Knight Frank. 

Papadakis added that the arrival of luxury-branded cafes aligns with Vision 2030, which aims to position Saudi Arabia as a global tourist destination by the end of the decade. 

Jeddah’s rising market 

Jeddah added 24,100 sq. meters to its lifestyle retail market last year, increasing total completed space to 233,400 sq. meters across 17 developments. 

A further 205,600 sq. meters are expected to be delivered by seven new projects, bringing the total supply to 439,000 sq. meters by 2027. 

Knight Frank further projected that Jeddah Cove Waterfront, due for completion by 2027, will contribute 70,000 sq. meters as part of a larger 127,000 sq. meters lifestyle destination featuring dining, more than 200 shops, a cinema and a marina overlooking the Formula 1 circuit. 

“With its enviable position on the Red Sea, Jeddah is a rising luxury and leisure hub that is ideally positioned to meet growing demand for lifestyle destinations and to attract international visitors,” said Amar Hussain, associate partner – research, MENA at Knight Frank. 

Hussain added that Jeddah’s lifestyle retail sector enjoys a strong average lease rate of SR2,200 per sq. meter and overall occupancy stands at 81 percent, with F&B units averaging 75 percent occupancy. 

“Mirroring global trends, Jeddah’s consumers are demanding environments that offer experiential retail, integrating shopping with entertainment and dining. This shift is driving the development of lifestyle retail centers focused on offering leisure opportunities, predominantly through new and unique F&B concepts,” said Papadakis.