Executive Summary: A $30 Billion Culinary Transformation
Saudi Arabia's foodservice sector is valued at $30.12 billion in 2025, expanding at 8.20% CAGR toward $44.67 billion by 2030 per Deloitte Insights. The Public Investment Fund-backed New Murabba district was designed to house over 1,200 F&B outlets across The Mukaab's 2.6 million square meters. While Mukaab superstructure construction was paused in January 2026 per Reuters, the surrounding district continues, and F&B fundamentals remain compelling for institutional investors tracked by Vision 2030 AI.
Market Sizing: The Numbers Behind the Boom
Riyadh Province alone hosts 33,399 restaurants, cafes, and bakeries — up 40% since 2020. Consumer spending reached SAR 1.4 trillion ($373B) in 2024, up 7% YoY. The IMF Saudi Country Report reported Saudi non-oil GDP growth of 4.3% in 2024, with hospitality among the strongest contributors. Food delivery is valued at $8.33 billion (2025), growing at 15.40% CAGR. Jahez (listed on the Saudi Exchange (Tadawul)) acquired Snoonu for $245 million and has autonomous delivery with ROSHN. E-commerce in food/grocery: $27.96 billion, 79% electronic payments per Saudi Central Bank (SAMA).
Riyadh: The Kingdom's Dining Capital
Riyadh captures 34% of national retail spending with 97% lifestyle occupancy per JLL. Premium mall F&B rents: SAR 2,400/sqm. Population: 7.95 million (2025)→9.6 million (2030). Riyadh Season 2024–25 attracted 20 million visitors (+47.6% YoY), generating SAR 6 billion ($1.6B) in revenue. F&B represented ~30% of total spend. The festival demonstrates massive demand elasticity when entertainment and dining converge.
2025–2026 Restaurant Openings
Major 2025 openings: Benoit (Alain Ducasse), Pret A Manger, Taleed (Michael Mina), Chotto Matte (Nikkei fine dining). Established luxury: Nobu, Hakkasan, Cipriani, Zuma, CUT by Wolfgang Puck, Sexy Fish, La Petite Maison. Apple opening first Saudi stores 2026. Luxury retail: Solitaire Mall (Dior, LV, Fendi), Via Riyadh (D&G, Zegna), Centria (Bottega, Cartier). Diriyah Gate: Zallal (H1 2025), Time Out Market (2027), targeting 450 brands. Majid Al Futtaim: 30+ new stores 2025.
Tourism-Driven Dining: 122 Million Visitors
The Saudi Tourism Authority reported 122 million visitors in 2025, generating ~$81 billion in tourism spending. Target: 150 million by 2030. Per-visitor F&B spending averages $42 daily, producing $5.1 billion in annual tourism-driven dining revenue per the UN World Tourism Organization. For New Murabba, captive market: 400,000 residents plus tens of millions of annual visitors. Comparable developments in Dubai and Singapore show purpose-built dining districts outperform standalone restaurants by 40–60% on per-seat revenue per McKinsey Global Institute.
SFDA Regulatory Changes: July 2025
The Saudi Food & Drug Authority implemented new rules effective July 1, 2025: mandatory caffeine content disclosure, sodium/sugar labeling, and calorie-burn equivalents (walking, running, cycling minutes per menu item). Compliance adds 3–5% to operational costs but positions Saudi-compliant brands for GCC-wide expansion. Tracked by the World Economic Forum's health policy observatory.
Food Innovation: Vertical Farming & Jeddah Food Cluster
Saudi imports 80%+ of food — a strategic vulnerability. The Public Investment Fund-AeroFarms JV achieves 1.1 million kg annual capacity using 95% less water. The Jeddah Food Cluster: 11 million sqm, SAR 20 billion ($5.3B) — Middle East's largest integrated food production, processing, and logistics hub. McKinsey Global Institute estimates Saudi food-tech investment exceeding $2 billion annually by 2028.
Franchise Economics and Foreign Ownership
The Ministry of Investment reduced licensing from 180 to 45 days. 100% foreign ownership permitted since 2021. Entry: $500K (fast-casual) to $5M+ (luxury). Returns: 18–25% ROI within 3 years. The Non-Saudi Real Estate Ownership Law (effective January 22, 2026) enables foreign operators to own commercial properties directly. The Capital Market Authority (CMA) regulates food-sector listings on the Saudi Exchange (Tadawul), where hospitality stocks outperformed the TASI by 12% since 2023.
New Murabba F&B Infrastructure
The district's 1.4 million sqm retail (larger than Dubai Mall + Mall of the Emirates combined) includes dedicated restaurant precincts, food halls, and rooftop dining. The 10,100 hotel rooms generate captive F&B demand estimated at SAR 800 million annually per STR benchmarks. Parsons Corporation's 60-month ILDC contract covers district-wide F&B infrastructure: commercial kitchen ventilation, grease trap networks, cold storage, and delivery infrastructure.
Investment Risk Factors
Risks include: Mukaab pause (district continues), Saudization (labor costs +15–25%), 15% VAT (ZATCA), competition intensifying, IMF Saudi Country Report fiscal deficit forecasts (4% GDP through 2027). Currency risk minimal: SAR pegged to USD at 3.75. Demographics favorable: 70% population under 35, female workforce 17%→33%+.
Conclusion
Saudi Arabia's $30B F&B sector offers 8%+ growth, 122M tourists, 97% luxury occupancy, streamlined ownership laws, and 70%-under-35 demographics. New Murabba represents a generational dining opportunity phased around Expo 2030 and FIFA 2034. Track via Vision 2030 AI, New Murabba Development Company, and Ministry of Investment.