Frank Cortes, Director of Public and Commercial Venues Management at King Salman International Airport at the MEADFA Conference 2024.

Frank Cortes, Director of Public and Commercial Venues Management for the upcoming King Salman International Airport in Riyadh, put forward the vision for the hotly anticipated mega development at the MEADFA Conference 2024 in Abu Dhabi.

The guiding star of the retail approach is putting people first by challenging assumptions of what Saudi people are seeking from a shopping experience, and creating a highly localised offering.

“We are creating a retailer agnostic approach,” he said, explaining that: “Retail is extremely important but it’s the operation that is behind – the customer is the important one, so it’s the customer that comes before absolutely everything.”

On forging partnerships to bring the vision to life, he later elaborated: “We need to forget the notion that we own the passengers. The passenger is a human being and we have to deliver a commercial proposition that is attractive for the passengers. So anyone that works in a silo we will have to have a conversation about what can they bring to the table that is complementary and connected, not individual. That is what I am interested in.”

In the session, titled ‘Thriving in transformation’, Cortes painted a picture of the unique characteristics of travel retail in Saudi Arabia and delivered key stats about the upcoming King Salman International Airport, which will be the future name of the current King Khalid International Airport.

“It is a masterplan that will developed until 2050,” he said. Cortes and the wider team are tasked with delivering a variety of assets including the private aviation terminal, Terminal 6, the Iconic terminal and runways – with the hub set to be able to accommodate 100 mppa by 2030.

The development itself stretches over a substantial 57 square kilometres.

“We know that everyone is building bigger, better, shiner,” said Cortes, who shared his opinion on the rise of homogenous retail spaces around the world.

“It doesn’t matter which high-street you walk down, you pretty much see the same retail proposition and brands,” he said, referencing how shopping malls in destinations from Barcelona to Riyadh and Nairobi can look similar.

“It looks as if places have lost their identity and actually it’s happening in airports too,” he said.

“It’s due to the concept that transitory places need to be anonymous. They are beautiful, but they don’t have identity. They are sanitised and they don’t connect with anybody. And that’s kind of the problem, because it means engagement goes down if people don’t connect with them. Plus, it means people do not consider going to the airport as part of the journey.”

He said that when airports move to increase the value of the asset by bringing in wealthier tenants and, subsequently, wealthier customers, it can mean that “all those things that makes the space special, disappears”.

“It becomes a generic space aimed at absolutely everyone,” he said.

He went on to describe how generic spaces that speak a universal language may often be designed to reflect Western attitudes to life, which in the MEA region, “may not be applicable”. He also outlined how these generic spaces could mean people feel less connected to the retail/commercial activity.

“We are trying to transform the way we do this,” he said, with regards to the envisioned retail offering. “But any transformation comes with little changes.”

He asked delegates in the room to close their eyes and imagine what Saudi Arabia means to them and how the reality may not be the same as what immediately springs to mind.

“Saudi Arabia and Riyadh are way more complex,” he said. “We know our audience. We know that 70% of the population is under 30 years old – it’s one of the youngest populations in the world – with an average age of 29.”

More surprising statistics include the high internet penetration rate (97%,) with 71% of the population active on social media (Snapchat).

Furthermore, women make up 36% of the labour force; 41.6% of the population are migrant versus higher rates across the GCC, and Saudi has the biggest family size in the GCC at 5.8 persons due to the extended family structure.

On developing King Salman International Airport, he said: “We want to create something that is unapologetically Saudi. You go there, you recognise it. Then, we target the real [actual] audience and not everyone.

“We are going to target the specific audience at the specific place, in their specific language,” he said. “We will use technology to support this aim.”

He underscored how the airport will be striving to ensure there is a relevant commercial offering for all types of passengers – all with a vision to deliver profit, a world-class experience and to drive a change perceptions in terms of what to expect from airport retail in Saudi.

“Most of you know that we are already engaging with brands, as they are the ones that connect with the consumers at home,” he said. “So we want to capitalise on that engagement and understand it.”

He also relayed how the airport is going to build a way of monitoring and reporting on passenger “happiness scores” into its contracts, stressing how the approach is not about selling more but selling smarter.

“Change is a controlled decision – you have to give space to allow that change,” he said.

At the core of this, he added, is a human centric approach that puts “people first”.

He went on to delve into greater depth about how a local retail offering would be one that is deeply engrained in Saudi culture.

“We don’t have a problem with space – every brand can express their identify and every experience can be delivered,” he said.

“We are looking for everything. Who tells you that you cannot buy local furniture at an airport? Who tells you that you cannot do many things. We are working now on the commercial strategy which hopefully we will be finalising in a month.”

In terms of timelines, the private aviation terminal is expected in 2027, Terminal 6 is expected in 2028 and the Iconic terminal is expected in 2030.

Other developments such as runways, housing, residential and retail projects will run alongside.

On evolving regulation in the country, including the introduction of arrivals duty free he said: “You have to build a case and build the demand.”

Ultimately, Cortes was keen to challenge assumptions about the Saudi market and, hence, what an airport retail should look like, concluding this presentation by underscoring: “It’s not what you think”.

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