Rapid Progress Begins on The Avenues Khobar

Saudi Arabia’s Eastern Province is set to be transformed by the ambitious Avenues Khobar project, with construction already ahead of schedule

Saudi Arabia’s Eastern Province is set to be transformed by the ambitious Avenues Khobar project, with construction already ahead of schedule

 

Construction has officially begun on Phase One of The Avenues - Khobar, a major mixed-use development in Saudi Arabia’s Eastern Province, with a budget of SAR7.3 billion ($1.95 billion). The project is moving quickly, following the recent awarding of a construction contract to a joint venture between Saudi-based AlKifah Contracting Company and Kuwait’s Al Ahmadiah Contracting. This contract was granted by Shomoul Holding Company, a subsidiary of the Kuwait-based developer Mabanee. The joint venture is working with the architecture and engineering firm Pace to bring this ambitious project to life, promising to transform the landscape of Al Khobar.

Back in December 2023, Shomoul Holding secured financing for Phase One, through an agreement with a consortium of banks led by the Arab National Bank and including Saudi Awwal Bank (SAB), Riyad Bank, and the National Bank of Kuwait, alongside the Saudi Tourism Development Fund.

The Avenues - Khobar project, the latest in The Avenues series, is already moving faster than anticipated, with 5.25% of the work completed, surpassing the scheduled 4.92%. So far, around 50% of the blinding works are done, with 6,083 cu m completed out of a planned 12,220 cu m. Additionally, 37% of the raft works are finished, with 54,189 cu m completed out of the targeted 144,857 cu m. The project is on track for a public opening in early 2027.

Positioned at the intersection of King Saud Road and Prince Sultan Road, The Avenues - Khobar will boast a gross leasable area (GLA) of 167,000 sq m. The development spans 198,000 sq m, and will feature a shopping center, dining options, entertainment venues, and office spaces. Additionally, two multi-use towers will be included, one housing a Four Seasons hotel and the other a Canopy by Hilton, alongside office spaces.

Pace CEO, Tarek Shuaib, highlighted the significance of this project, saying, “The Avenues brand has always set the standard for retail and leisure experiences, and The Avenues - Khobar will continue that tradition. It aims to be a major attraction, not only for the local population but also for visitors from across the kingdom and beyond, offering a unique mix of retail, entertainment, and architectural excellence.”

The Avenues - Khobar blends modern architectural elements with inspiration drawn from the natural beauty and heritage of the Eastern Province. It is designed to offer more than just a shopping experience, with over 10 cinema halls, numerous cafes and restaurants, public gardens, and entertainment options for visitors of all ages. The project will also include over 6,000 parking spaces to ensure easy access for guests.

Divided into eight distinct districts—The Plaza, Grand Avenue, Town Square, The Souk, Electra, The Mall, Urban Walk, and The Gardens—each area will have its own character. The Grand Avenue, The Plaza, and The Mall will offer luxury shopping experiences, drawing inspiration from iconic global shopping destinations. Meanwhile, The Souk will reflect the heritage of traditional Saudi markets, with local restaurants and authentic market vibes that create a cultural experience within the complex.

Town Square will serve as a creative space, flooded with natural light, designed to foster community interaction. Electra, inspired by Tokyo's vibrant energy, will focus on cutting-edge technology and innovation. Urban Walk will provide a serene setting with gardens, walkways, and both indoor and outdoor seating areas for visitors to relax and unwind.

In line with global sustainability practices, The Avenues - Khobar will incorporate environmentally friendly designs and energy-efficient solutions, reflecting the kingdom’s forward-thinking approach under Saudi Vision 2030. This ambitious project is expected to create over 10,000 job opportunities in the retail and entertainment sectors, contributing to the region’s economic development.