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RIYADH: Saudi developer Cenomi Centers is considering additional financing options to cover the $1.3 billion cost of its two flagship malls, Jawharat Riyadh and Jawharat Jeddah.

In an interview with Arab News during the ongoing Retail Leaders Circle Global Forum 2025 in Riyadh, the company’s Chief Operating Officer, Bruno Wehbe, shared insights into Cenomi’s financial strategy and the ambitious vision driving the projects.

“We are looking at all options to fund the massive growth that’s coming around the corner,” Wehbe stated. “Our CFO is looking at a multitude of sources. These include raising financing again, it could be sukuk, it could be something else.”

The COO also pointed out that potential funding sources include the sale of non-core assets, such as unused land, a move that has already been announced as part of a broader strategy.

He highlighted that internal operations will contribute to financing growth capital expenditures, stressing that the approach is well-thought-out and strategic.

The Jawharat Riyadh and Jawharat Jeddah projects are set to be transformative for Saudi Arabia’s retail and lifestyle landscape.

“Together, excluding the land, they will cost upward of SR5 billion ($1.3 billion). They are expected to rank among the top one to three in their respective cities and the top five in MENA. This is the benchmark we are aiming for,” Wehbe said.

Jawharat Jeddah is set to open at the end of 2025, with Jawharat Riyadh following in early 2026. These developments are not just aiming to be traditional malls; they are being designed to establish themselves as premier lifestyle destinations.

Jawharat Riyadh, in particular, will stand as one of the region’s largest retail complexes, covering 500,000 sq. meters of land—roughly the size of 70 football fields. The mall will offer 220,000 sq. meters dedicated to retail, office space, entertainment, and food and beverage experiences.

“We are breaking this closed concrete box design that you see across Saudi Arabia, including some Cenomi Centers malls, the old ones in particular,” Wehbe noted. “For example, the Jawharat Riyadh will have almost 27,000 sq. meters of skylight. It’s probably the largest skylight in the Middle East for a lifestyle destination.”

Cenomi Centers is also aiming to set a new benchmark in sustainability. “Sustainability is at the heart of what we do. We’re really aiming to be the first gold LEED-certified mall in the Kingdom, at least in Jawharat Jeddah and then Jawharat Riyadh. We’re aiming for platinum, but we’re promising LEED,” he said.

The tenant mix is a key component of the strategy, according to Wehbe. “What we call ‘magic’ is the mix. You can build the best asset, achieve the highest sustainability standards, and offer the best omnichannel experience. If you don’t have the right mix—meaning the right brands, the right tenants, the right experiences—you won’t have a successful asset,” he explained.

The space allocation within the malls reflects this vision. “We’re planning an additional 65,000 sq. meters of prime office space at Jawharat Riyadh,” Wehbe added.

Phase 2 of the developments will also include an arena, branded residences, and several four- and five-star hotels.

The developer is also focused on introducing unique offerings to the Saudi market. “We are introducing more than 15 to 20 new brands and concepts that will make their debut in Saudi Arabia at Jawharat Riyadh. You’ve never seen them here before,” Wehbe shared.

He continued: “You’re talking about first-of-their-kind concepts created by young Saudi designers and local commissions. We’re also bringing in media studios with broadcast facilities inside Jawharat Riyadh.”

Wehbe also emphasized the company’s commitment to strengthening its financial position and improving its credit rating. “The sukuk we raised last year had multiple purposes. Part of it was used to stabilize and strengthen the capital structure, and part of it went towards improving the credit rating. We had a BB- rating with a stable outlook,” he said.

He added: “Ultimately, our goal is to improve our rating. I personally believe that as soon as growth takes shape—through these two Jawharats and other upcoming announcements—we’ll see progress.”

The company expects significant financial returns from these investments. “Jawharat Riyadh and Jawharat Jeddah will contribute more than 50 percent of our existing EBITDA (earnings before interest, taxes, depreciation, and amortization),” Wehbe stated.

The two malls are projected to generate SR650 million in steady-state EBITDA within about two years, which will account for approximately 50 percent of the current EBITDA base.

“The market will only improve. It’s one of the few bright spots of this region, if not the world,” Wehbe said, highlighting the broader market context and emphasizing how Cenomi Centers’ growth is intricately intertwined with Saudi Arabia’s economic trajectory.

Reflecting on the company’s recent performance, Wehbe described 2024 as a year of record achievements. “We were on track to achieve more than 130 million visits across our 22 centers. 130 million, that’s almost roughly four times the Saudi population. Massive. I don’t think that’s matched anywhere in the Kingdom. We also had record occupancy rates,” he remarked.

The scale of these numbers paints a captivating portrait of the company’s success, a vibrant mosaic of growth against a backdrop of a dynamic, ever-evolving retail landscape.

Looking to the future, Cenomi Centers is determined to deliver on its promises and further elevate investor confidence.

“Investors will finally get the confidence that we are basically executing on what we promised them, and that is the materialization of the promise of the two Jawharats and beyond,” Wehbe concluded.

As the company continues to orchestrate its ambitious vision, these developments beckon as not just destinations, but as a reimagined experience in the heart of a verdant, flourishing market—one that is certainly set to transcend expectations.

RIYADH: The Saudi Arabian Mining Co., or Ma’aden, intends to issue US dollar-denominated sukuk under its International Trust Certificate Issuance Program, scheduled to launch Feb. 4, a bourse filing revealed.

Released on the Saudi Stock Exchange, the statement explained that the offer, which will be utilized for general corporate purposes, comes following approval from the firm’s board of directors on Dec. 18 and shareholders’ approval on Feb. 3.

The issuance of the Shariah-compliant bonds is expected through a special purpose vehicle and will be offered to eligible investors both inside and outside the Kingdom.

The move aligns with projections that global sukuk issuance will reach between $190 billion and $200 billion in 2025, driven by increased activity in key markets like Saudi Arabia and Indonesia, according to an analysis from S&P Global in January.

The Tadawul statement further highlighted that Ma’aden appointed Citigroup Global Markets Limited, HSBC Bank plc, and Al Rajhi Capital Co., as joint lead managers for the offering, as well as BNP Paribas, GIB Capital, and J.P. Morgan Securities.

Natixis, Saudi Fransi Capital, SNB Capital, and Standard Chartered Bank were also appointed to the role.

The amount and terms of offer of the Trust Certificates will be determined subject to the market conditions.

The Kingdom’s banking sector is experiencing a surge in activity in debt and sukuk markets as leading financial institutions move to strengthen their capital bases and fund strategic growth initiatives. 

Al Rajhi Bank, Banque Saudi Fransi, and Arab National Bank are among the key players announcing substantial issuances to tap local and international investors. 

This wave in activity supports the Capital Market Authority’s objective of transforming the nation’s investment market into a key pillar of its economy, as outlined in Vision 2030.

The plan emphasizes expanding financing options, promoting funding opportunities, and attracting international investors.

The CMA’s strategy seeks to expand the debt instruments market to 24.1 percent of gross domestic product by 2025 by implementing regulatory reforms, improving market accessibility, and streamlining issuance processes.

Global sukuk issuances totaled $193.4 billion in 2024, a slight decrease from $197.8 billion in 2023. Despite this marginal decline, the market saw a 29 percent year-on-year increase in foreign-currency-denominated sukuk, surging to $72.7 billion in 2024.