A SAR7.3 billion ($1.95 billion) landmark is rising in Al Khobar, blending traditional Saudi heritage with futuristic retail concepts to create a premier mixed-use destination.

In the heart of Saudi Arabia’s Eastern Province, The Avenues – Khobar is rapidly taking shape. This mammoth project will encompass commercial and entertainment areas, residential apartments, hotels, exhibition halls, ballrooms and offices.

As the latest addition to the prestigious ‘The Avenues’ portfolio, the mega-project is a cornerstone of the kingdom’s Vision 2030, aiming to diversify the economy and elevate the regional hospitality and retail landscape while reshaping the landscape of Al Khobar.

AlKifah Contracting and Al Ahmadiah Contracting are responsible for construction works.

The construction works for Phase One of the ambitious The Avenues – Khobar are being implemented by a Saudi-Kuwaiti alliance. Last August, Shomoul Holding Company, a subsidiary of Mabanee, awarded the construction contract to a joint venture of Saudi group AlKifah Contracting Company and Kuwait-based Al Ahmadiah Contracting. Working alongside Kuwait-based regional architecture and engineering firm Pace, the joint venture is pushing ahead to bring this visionary project to life.

Funding for Phase One was concluded in December 2023 by Shomoul Holding through a landmark agreement with the Saudi Tourism Development Fund and a banking consortium led by Arab National Bank, and including Saudi Awwal Bank (SAB), Riyad Bank, and the National Bank of Kuwait.

Strategically located at the intersection of King Saud Road with Prince Sultan Road, The Avenues – Khobar promises to offer more than just a shopping experience. Sprawling across a 198,000-sq-m area, the development features a commercial centre and two multi-use towers – the first tower housing Four Seasons hotel and the second hosting Canopy by Hilton in addition to offices.

The project boasts a gross leasable area (GLA) of 167,000 sq m, accommodating a wide range of shopping, dining, entertainment, and office spaces.

SITE PROGRESS

According to the latest project data released by Pace to Gulf Construction, construction is currently ahead of schedule, sitting at 5.25 per cent completion against a planned 4.92 per cent. Work is progressing steadily across multiple packages – including structural, infrastructural, and utility works – with significant milestones having been achieved. Specifically, 50 per cent of the blinding works have been completed, equating to 6,083 cu m out of the planned 12,220 cu m. Additionally, 37 per cent of the raft works are done, amounting to 54,189 cu m out of the targeted 144,857 cu m. 

Structural works on the Canopy tower have now reached 36.81 per cent completion, with a total of 354,131 cu m of reinforced concrete placed to date, alongside the erection of 32,465 precast elements. Upcoming works on the tower include ETFE roof erection, MEP equipment installation, and mall façade installation, marking the transition into the next phase of construction, according to Pace.

A significant component of the project is the external road works, designed to enhance accessibility, connectivity, and aesthetic appeal. This scope includes the construction and upgrading of external roadways and underpasses, seamlessly integrating the development with the existing infrastructure and ensuring smooth and efficient traffic flow to and from the site. This part of the project has now reached 41.53 per cent completion.

Expressing his enthusiasm for the new mega project, Pace CEO, Architect Tarek Shuaib, says: “The Avenues brand has undeniably set the standard as a trailblazing retail and leisure destination, and The Avenues – Khobar is no exception. Aspiring to be a point of attraction not only for local residents, but also for visitors from across the kingdom, and beyond, it is poised to redefine the region with a unique blend of retail, entertainment, and modern architectural excellence.”

The Avenues – Khobar boasts a modern architectural style that harmoniously blends elements that pay homage to the rich history and natural beauty of the Eastern Province.

A haven for entertainment enthusiasts, the project will feature over 10 cinema halls, numerous cafes and restaurants, public gardens, and entertainment venues suitable for all ages, catering to diverse interests and preferences. With more than 6,000 parking spaces, it ensures convenience and accessibility for its visitors.

Going beyond traditional malls, the concept of shopping and entertainment at The Avenues – Khobar stands out, comprising eight districts – The Plaza, Grand Avenue, Town Square, The Souk, Electra, The Mall, Urban Walk and The Gardens – each designed with a unique ambiance. The project’s diversity promises an exceptional experience for visitors and shoppers alike.

Construction on The Avenues – Khobar is currently ahead of schedule, sitting at 5.25 per cent completion.

Among the distinctive zones, the Grand Avenue, The Plaza and The Mall are designed to epitomise luxury shopping, inspired by the world’s most renowned shopping destinations. 

The Souk, another enchanting zone, draws inspiration from the rich heritage of old Saudi markets, providing a captivating blend of authentic local restaurants and traditional market vibes.

Bathing the area in a warm and welcoming glow with its abundant natural lighting, Town Square serves as a creative and communal space, fostering connections among shoppers and encouraging artistic inspiration. Meanwhile, Electra is a futuristic zone inspired by the vibrant energy of Tokyo city, where cutting-edge technology takes centre stage.

The mall comprises eight districts.

Urban Walk promises a unique shopping adventure offering serene strolls amidst lush greenery, with both indoor and outdoor seating areas for relaxation.

“The Avenues’ success far exceeds the confines of a typical shopping experience, turning into a holistic philosophy that is currently being emulated across the region. What began as a visionary concept in Kuwait has become a powerful symbol of modernity, luxury, and innovation,” Shuaib states.

SUSTAINABILITY

The Avenues – Khobar takes on a sustainable approach with a globally inspired design, reflecting the best standards in environmental preservation and energy efficiency.

Reflecting modern ESG standards, the project utilises a dedicated multi-level district cooling plant located on a separate plot. This facility, featuring a thermal storage tank and electric chillers, manages a massive 23,000-ton load to ensure energy-efficient climate control throughout the mall.

Located at the intersection of King Saud Road with Prince Sultan Road, The Avenues – Khobar sprawls across a 198,000-sq-m area.

Another critical infrastructure component of the project is the substation, which ensures reliable power distribution to meet the demands of the development. The substation’s design and construction have been carefully planned to align with the project’s overall power requirements, according to Shuaib.

Aligned with the Saudi Vision 2030, which seeks to diversify the nation’s economy away from oil dependency, The Avenues – Khobar is set to create over 10,000 job opportunities in the retail and entertainment sectors, significantly bolstering the entire service sector in the region, he adds.

“We are proud to contribute to the growth and prosperity of Saudi Arabia’s Eastern Region. With expectations to open its doors to the public in the first quarter of 2027, The Avenues – Khobar is set to become a vibrant complex, where modernity meets tradition, and luxury intertwines with sustainability,” Shuaib concludes.