Dubai-based developer Majid Al-Futtaim plans to invest SR14bn ($3.732bn) to develop two new shopping malls in Riyadh.

The new additions will bring the total number of malls owned and operated by the Majid al-Futtaim to 20 across the Middle East and North African region, the company said in a statement. The new projects, Mall of Saudi and City Centre Ishbiliyah, are expected to be funded in line with the company’s “prudent financial management,’’ it said without giving further financing details.

The company plans to build Mall of Saudi in north of Riyadh, which will become the Kingdom’s largest shopping mall, with a total land area of over 866,000 square meters. It will be home to indoor snow parks.

The development plan also includes 300,000 square meters of shops, restaurants and entertainment areas, residential units, offices, showrooms, hotels, serviced apartment buildings and other public amenities, according to the statement.

First Phase

The first phase of the development, which is set to commence by middle of 2017 and completed by 2022, will include the mall, ski slope, one hotel and serviced apartment building. Development of residential, office, medical centre and hotel plots will follow in later phases.

City Centre Ishbiliyah, is planned in east Riyadh, which will be Saudi Arabia’s first City Centre mall. It will cover over 100,000 square meters of gross leasable area and will feature 250 stores, a 9,000 square meters Carrefour hypermarket, food court and an entertainment complex.

Majid al-Futtaim has had a significant presence in Saudi Arabia for more than 11 years through Carrefour, operating 12 hypermarkets and four supermarkets with more than 2,500 employees. The company also operates Enova in Saudi Arabia, a facility management company, through a joint venture operation with Veolia and owns a fashion retail business representing international brands such as Jane Norman, Juicy Couture and Peacocks.

Regional Expansion

Majid Al-Futtaim Group, the parent company, on 1 February said its 2015 revenues grew to AED27.3bn ($7.43bn), an 8 per cent year-on-year jump as it continues to expand in the Middle East and African regions. Total assets sat at AED51bn at the end of 2015 and its net debt reached AED9bn.

Although, UAE remains the focus for the company, it aims to solidify presence in Egypt, Saudi Arabia and Oman and plans stronger foothold in Africa and Eurasia through its Carrefour business.

Company’s My City Centre, a 5,000 square meters mall in Dubai’s Al Barsha area is expected to be completed in the third quarter of this year. Its investment plans also includes development of City Centre Almaza, the third City Centre in Egypt, which is due to open in 2019.

In Africa, the company is initially focusing on development in Eastern and Southern African nations, with Kenya set to be the first destination for Carrefour in 2016, according to the statement.