Riyadh - Mubasher: The flourishing entertainment industry in Jeddah heralds more opportunities for diversified market investments for developers of the Saudi capital, according to Jones Lang LaSalle (JLL).

The growth of Jeddah’s entertainment sector and cultural offerings would boost the expansion of several sectors in Saudi Arabia on the long term, including the city’s hotel, retail and residential segments, JLL said in its Jeddah Real Estate Market report for the second quarter of 2018.

The hotel sector is already witnessing a string of cultural and leisure projects in the Saudi capital’s real estate market, including the Jeddah Opera House, with the aim of providing diversified visitor base, catering for local and gradually international visitors. This would create a stronger demand for hotels in the market. 

“The Kingdom is now in its implementation phase of the Saudi Vision 2030, which aims to diversify the economy from oil dependency, by increasingly investing into the tourism and other sectors,” the Middle East and North Africa (MENA) research head Craig Plumb said.

While Vox Cinemas will be investing in the Red Sea Mall in Jeddah, which would start operating in the first quarter of 2019, the retail industry would also reap the benefits of new cinemas due to be established under the deals between Vue Cinemas and Al Hokair Holding Group.

Moreover, Jeddah Metro’s plans for the Obhur Bridge would serve in expanding the residential sector by increasing the demand for the northern suburbs as a destination to live through shortening the travel distances towards vital business centres.

Given that Jeddah is the gateway city to Makkah, such projects will aim to “create an attractive business environment” while also encouraging “further investment within the region,” the report added.