Retail in the Middle East is being reshaped by a convergence of trends: urban development, sustainability, digital innovation, and shifting consumer behaviour.

We’re working with nearly every major developer across the region, helping design future-ready retail environments that are not only commercial spaces but urban and cultural anchors.

Nowhere is this more apparent than in the rise of the ‘20-minute city’.

This urban planning concept — where residents can access work, school, retail, leisure, and healthcare within a 20-minute walk or bike ride — is increasingly influencing the structure of our cities. In the GCC, it’s become a policy priority.

In response, developers are embedding community malls directly into new residential districts from Dubai South to Riyadh’s Northern Gateway. These centers are not just places to shop; they serve as essential, walkable hubs of convenience and social cohesion.

Complementing this shift toward the hyperlocal is a parallel boom in destination retail, especially in areas pegged for exponential urban growth. Major retail hubs are being planned or expanded near strategic nodes such as Al Maktoum International Airport and the Palm Jebel Ali.

These destination malls are being designed not simply as shopping centers but as mixed-use ecosystems integrating entertainment, wellness, fine dining, and cultural experiences. Across the Gulf, mall renovation and repositioning projects are surging as developers respond to changing consumer expectations and a shifting urban landscape.

More physical retail spaces

At Nad Al Sheba Mall, Gensler transformed a partially built structure into a 500,000 square feet pedestrian-first neighbourhood mall. Alongside renovation, large-scale new developments are dramatically expanding the Gulf’s retail footprint.

In Riyadh alone, over 2 million square meters of new retail space are projected to be added by 2030, reflecting the city's rapid urban growth and the Saudi Vision 2030 agenda.

Luxury retail, in particular, is booming. In 2024 alone, the GCC personal luxury market hit $12.8 billion and is forecast to reach $15 billion by 2027. The UAE and Saudi Arabia account for nearly three-quarters of this market, with Dubai now ranking among the world’s Top 5 cities for luxury retail performance.

But the biggest accelerant of change in the coming years will be the digital transformation of retail environments. The Digital Experience Design—or DXD — is rapidly emerging as a cornerstone of new retail strategies. Tech features like smart parking, AI navigation, and personalized touchpoints are now standard.

Rise of experiential showrooms

In the Gulf, retailers are increasingly converting physical stores into experiential showrooms, with purchases finalized digitally. This hybrid model reflects changing consumer patterns: e-commerce in the UAE alone now accounts for 12% of total retail sales, with categories like electronics and grocery driving growth.

The convergence of retail and hospitality is another defining trend. Whether it’s boutique hotels layered over lifestyle malls, culinary academies integrated into food halls, or wellness destinations housed within luxury retail podiums, the lines between shopping, leisure, and living are blurring.

This mirrors regional tourism strategies, such as Saudi Arabia’s Vision 2030 and Dubai’s 2040 Urban Master Plan, both of which prioritize the creation of livable, attractive cities for residents, tourists, and investors alike.

Ultimately, what we are witnessing is the emergence of a new retail paradigm — one that is localized, experience-led, environmentally responsible, digitally orchestrated, and deeply embedded into the cultural fabric of the Middle East.

Retail is no longer just about selling products. It is about shaping places, strengthening communities, and delivering long-term economic and social value.

The next chapter of retail in the Middle East won’t look like the past. It will look like the cities we are building today — intelligent, inclusive, and designed for life.

Todd Pilgreen

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