IKEA to open Saudi Arabia's first shopping mall outlet in Al Salaam Mall in Jeddah, operated by Arabian Centres

Jeddah, KSA; June 15, 2016

Arabian Centres, the leading developer, owner and operator of international standard shopping malls in Saudi Arabia, announced today that it has entered into a tenancy agreement with Ghassan Ahmed Al Sulaiman Furniture Trading Co. Ltd., IKEA Saudi Arabia, the leading home furnishings retailer in the region, which will open an anchor store in Al Salaam Mall in Jeddah, making it the first IKEA store integrated into a shopping mall in Saudi Arabia.

As part of the deal, Al Salaam Mall will house a 23,000-sq m IKEA store which is expected to open in 2017, and will be the second store in the western region. The three-level outlet will include a showroom, restaurant and a market hall that will provide customers with greater convenience and a wide selection of home furnishing inspiration and solutions at incredibly low prices. The store expects to receive three million visitors annually.

The anchor store will present more than 7,000 exclusively designed items, three model home interiors, approximately 53 room settings, a supervised children's play area accommodating 80-100 children, a 400 seat restaurant serving Swedish specialities such as meatballs with lingonberries and salmon plates, as well as Saudi cuisine. Other family-friendly features will include a 'Children's IKEA' area in the showroom, baby care rooms, and preferred parking.

Commenting on the opening of the new mall, Khalid Al Jasser, CEO of Arabian Centres said: "World-renowned brands like IKEA choosing our properties testifies to the fact that Arabian Centres continues to deliver the most preferred retail destination for consumers and retailers alike.

Operated by Arabian Centres, Al Salaam Mall is a landmark retail destination in Jeddah that serves millions of visitors annually, offering modern retail, leisure and entertainment solutions.

The opening of the anchor store coincides with significant growth opportunities that exist for retail sector in the Kingdom. Underpinning the appeal of the sector is its strong indigenous population with around 70% of its 30 million residents being under the age of 30 - and the population is swelling by 1.6% to reach 40 million by 2050 (source: official estimates).

A retail category with perhaps the greatest potential is household formation, a prime growth segment that ranges from white goods to furniture. Unlocking the potential of this segment is the Kingdom's burgeoning housing market, supported by the Government's plans to create affordable housing for the growing population.

Saud Al Sulaiman, Chief Executive Officer of IKEA Saudi Arabia, said: "It is an exciting time for IKEA Saudi Arabia as we become closer to our customers in Jeddah than ever before. We are delighted to open yet another store which will provide a convenient shopping experience for our current and potential customers in the southern area of Jeddah."

The Saudi market presents huge potential for us, with a growing customer interest in home furnishing. As we grow in the Kingdom, we are committed to creating a better everyday life for the many people." He added.

Al Salaam Mall, located on Prince Majid Rd in Jeddah, houses more than 200 stores featuring high street brands and a wide range of leisure and entertainment options. The launch of IKEA outlet in Salaam Mall follows the recent opening of Yasmin Mall, Arabian Centres' fifth shopping centre in Jeddah and 18th in the Kingdom.

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About Arabian Centres:
Arabian Centres is the leading developer, owner and operator of international standard shopping malls in Saudi Arabia. It currently operates 18 malls across 10 cities in Saudi Arabia, providing an unmatched shopping and leisure destination for visitors.

Arabian Centres has over 3,400 retail outlets including 530 international and local brands, and unrivalled family leisure offerings. Part of the Fawaz Alhokair Group, Arabian Centres has a 15-year proven track record in delivering consistent success in the retail and real estate sectors in Saudi Arabia.

Arabian Centres' current property portfolio in the Western region includes Mall of Arabia in Jeddah;  Aziz Mall in Jeddah; Al Salaam Mall in Jeddah; Haifaa Mall in Jeddah; Yasmin Mall in Jeddah; Al Noor Mall in Madinah; Makkah Mall in Makkah; and Jouri Mall in Taif.

In the Central region, the developer owns Salaam Mall in Riyadh, Al Nakheel Mall in Riyadh, Khurais Mall in Riyadh, Sahara Plaza in Riyadh, Tala Mall in Riyadh, Salma Mall in Hail, and Al Nakheel Mall in Qassim. Shopping centres in the Eastern region include Mall of Dhahran in Dammam; Al Ahsa Mall in Hofuf and Al Jubail Mall in Jubail.

About IKEA Saudi Arabia
IKEA Saudi Arabia, the leading home furnishings retailer in the region and a member of the Ghassan Ahmed Al Sulaiman Furnishing Co. Ltd, offers an affordable and extensive range of home furnishing products of good design, value, and functionality. Since the opening of the first IKEA store in Jeddah in 1983, IKEA has expanded its Saudi operations to Riyadh and Dhahran with plans for further expansion. All three stores closely follow the popular self-serve, self-assembly concept and feature an impressive array of cutting-edge design and home improvement solutions. For further information, please contact IKEA's KSA customer care center at 92000-4532 or visit www.ikea.com/sa

For further information about Arabian Centres, please contact:
Jonathan Smith or Ajith Henry
ASDA'A Burson-Marsteller; Dubai, UAE
Tel: +971 4507600
Email: arabiancentres@bm.com

© Press Release 2016