The construction of Phase 1 of The Avenues – Khobar mall, a 7.3 billion Saudi riyals ($1.947 billion) project in Saudi Arabia’s Eastern Province, has reached a 5.25 percent completion rate, as reported by the project’s lead consultant, Pace.
In August 2023, the main contract was awarded to a joint venture between Saudi Arabia’s AlKifah Contracting Company and Kuwait’s Al Ahmadiah Contracting. The contract was issued by Shomoul Holding, a subsidiary of Mabanee, marking a significant step in the project’s development.
According to a recent statement, the project has achieved several construction milestones. Notably, 50 percent of the blinding works have been completed, which translates to 6,083 cubic meters out of the planned 12,220 cubic meters. Additionally, 37 percent of the raft works have been completed, amounting to 54,189 cubic meters out of the targeted 144,857 cubic meters.
The overall project is currently ahead of schedule, with 5.25 percent of the construction completed compared to the planned 4.92 percent.
The Avenues – Khobar, designed to be a major retail and entertainment destination, spans a total area of 198,000 square meters and includes a gross leasable area (GLA) of 167,000 square meters. The development will feature a mall and two multi-use towers. The first tower is set to house a Four Seasons hotel, while the second tower will feature Canopy by Hilton, in addition to office spaces.
The financing for Phase 1 is being provided by the Saudi Tourism Development Fund in collaboration with a banking consortium led by Arab Bank. The consortium also includes Saudi Awwal Bank (SAB), Riyad Bank, and the National Bank of Kuwait. The financing agreement was finalized in December 2023.
Pace CEO Tarek Shuaib announced that the first phase of The Avenues – Khobar is scheduled to open to the public in the first quarter of 2027. He highlighted that the success of The Avenues extends beyond just providing a shopping experience, evolving into a holistic philosophy that is being adopted across the region. Shuaib also noted that the project is expected to create over 10,000 job opportunities in the retail and entertainment sectors, aligning with the goals of Saudi Vision 2030.
