Malls used to be the destination for high-fashion and cosmetics stores and movies, and they then became home to the hottest restaurants. Soon after, the rise of online shopping started hurting shopping malls. 

In the Middle East, however, glitzy malls—the largest and biggest, with polished glass and terrazzo surfaces, a skylit central courtyard modeled after the Greek agora, —reflect the region’s dream—a symbol of its Teflon toughness. It is little wonder that malls have proliferated. Judging from the crowds, they counter the narrative that the mall is “dead.”

However, a new order is emerging, decoupling it from why it was born and from which it grew, especially in the age of online shopping. 

“We recognize the importance of reinventing malls in an era where online shopping offers ease of purchase and competitive pricing,” says  Alison Rehill-Erguven, CEO of Cenomi Centers.

To stay relevant, she adds, “We ensure that our centers remain indispensable destinations that offer new, in-demand experiences.” 

Malls occupy a specific place in the regional landscape and psyche. 

Over the last few years, the aim has been to repurpose them as Disneyland, offering a bit of everything for everyone to plug the cultural shift to online shopping.

In a way, the digital marketplace has enabled malls. One thing malls can provide that a click of the phone cannot is the ability to see and feel a product, to try it on, to test it, and to feel as if you are getting some kind of deal on it.

IMMERSIVE LIFESTYLE DESTINATIONS

Unlike online shopping, Hayssam Hajjar, Director of Asset Management at Al Futtaim Real Estate, says malls have the advantage of providing an “immersive, multi-sensory customer experience, and this should be the focus if malls want to compete successfully with online platforms.”

For instance, with the rise of the Korean Wave, Al Futtaim’s offerings at Dubai Festival City Mall include the launch of Korea 360, a dedicated space featuring K-pop merchandise, K-beauty products, and Korean cuisine.

“The fusion of retail with lifestyle, from wellness hubs to high-end gastronomy, redefines the modern mall experience,” adds Hajjar.

Another addition to the mall is the largest food hall in the Middle East, Market Island, which offers dining options ranging from casual food courts to high-end restaurants. 

In fact, a new breed of shopping center is integrating seamlessly into its urban surroundings, with new mall configurations catering to the rapid rise of domestic consumerism and quickly evolving tastes.

Then, some malls are monuments to the glamor of shopping—like Dubai Mall—anchored by their original department stores and leaning into their identity to serve an emerging class of consumer, the “fly in, fly out, shopping vacationer.” Visitors who have to check out of their hotel by noon have a few hours to kill before a flight, so instead of hanging out in the airport, they pop into Ladurée to pick up some last-minute treats. 

Apart from the regulars—major department stores, restaurants, movie theaters, hair and nail salons, fitness ventures, and ski slopes—some malls offer hands-free shopping, so whatever you buy can be delivered straight to your car.

In the Middle East, Hajjar says malls are becoming lifestyle destinations that transcend shopping and offer a wide variety of dining, leisure, entertainment, and unique events. 

“This makes them ideal venues for meeting with friends and enjoying shared experiences.”

ATTRACTING THE YOUNGER GENERATION

Malls fulfill an important human function—the need for people to get together. Mall owners and retailers are attracting the younger generation with unique store features, such as selfie mirrors or videos, and experiences, such as pop-up concerts. 

In fact, Gen Z consumers, despite growing up as digital natives, prefer to shop in person and love the mall experience, according to a survey by the ICSC, a mall industry group.

“Gen Z  values malls but for social engagement, experiences, shareable moments, and curated spaces, not just shopping,” says Mohammed Dhedhi, Partner, Consumer and Retail Practice, Kearney Middle East and Africa. “While e-commerce fulfills transactional needs, malls serve as lifestyle and community spaces where Gen Z can socialize, explore, and engage beyond digital interactions.”

UNIQUE STRENGTHS

Rehill-Erguven says malls have been a defining feature of Middle Eastern culture, and they have an “opportunity to reinvent” by leveraging their unique strengths.

“Malls can be a vibrant community hub where people gather for entertainment, dining, and socializing—experiences that can’t be replicated online,” adds Rehill-Erguven. 

Enhancing experience through personalized service and fostering loyalty through meaningful connections can help malls maintain cultural significance while appealing to younger generations. 

“The key is integrating these physical experiences with digital touchpoints to create a seamless omnichannel journey that complements the convenience of online shopping,” adds Rehill-Erguven.

Green space and more attractive spaces where people can spend time are also important parts of reviving malls that have suffered from the rise of online shopping. 

Hotels, serviced apartments, and office towers are also built to create a mixed-use center around public space—in short, weaving malls into the very urban fabric. 

For example, the most ambitious shopping and lifestyle destination, Avenues Riyadh, which is set to open in 2026, is a $4.58 billion mega-mall that is said to be nearly 3.5 times the size of the Mall of America. In Dubai, Alserkal Avenue is a community zone for co-working, networking, and cultural engagement.

INTEGRATE TECHNOLOGY, ART, AND COMMUNITY EXPERIENCES

For malls to thrive in today’s competitive landscape, it is essential to integrate technology, art, and community experiences—offering a diverse range of attractions that cater to various interests. 

Rehill-Erguven says Cenomi Centers embraces this holistic approach by diversifying its offerings with dining options, entertainment venues, fitness centers, and wellness spaces. “This variety not only attracts a broader audience but also ensures that each of our visitors finds something unique and engaging during each visit.”

She cites Jawharat Riyadh’s development as an example. It will have an entertainment district offering diverse leisure activities—from theme parks and play areas to “sportainment” hubs equipped with digital simulators—and Saudi Arabia’s first digital museum.

“Technology plays a crucial role in enhancing these experiences. By incorporating cutting-edge innovations like augmented reality installations or interactive digital displays, we create immersive environments that captivate visitors and set us apart from online shopping platforms,” adds Rehill-Erguven. 

A SPECIAL EXPERIENCE

The region is known for its luxury malls, and many focus on curation rather than commoditization, splicing it with the lessons of duty-free shopping and framing it all as a special experience.

“Upscale experiences are essential for affluent consumers seeking memorable and elevated mall visits; they expect unique attractions that transform shopping into a multifaceted experience,” says Hajjar.

“We are looking into similar possibilities, such as incorporating elements of nature for a refreshing experience, celebrating local art and creativity through galleries, workshops, and artisanal markets, offering immersive entertainment and interactive activities to enhance leisure, and providing flexible workspaces to make malls versatile destinations for both shopping and professional needs,” he adds.

No doubt, malls in the region are evolving into multi-purpose lifestyle hubs. Dhedhi says, “Dubai Mall is known for AI-driven omnichannel retail for personalized shopping and immersive entertainment, including digital art and live events. Nakheel Mall for viral food concepts and high-end dining to drive visits. The Galleria is popular in Abu Dhabi for its wellness hubs with boutique fitness and recovery spaces.” 

He reiterates that reinvention is critical as e-commerce reshapes consumer behavior, reducing the need for in-person shopping.

“To stay competitive, malls must shift to experience-led, omnichannel destinations, blending luxury wellness, cultural attractions, and digitally enabled retail. AI-driven personalization, interactive store concepts, and exclusive product launches ensure footfall.”

More importantly, Dhedhi adds, experience-driven malls are proving to “enhance tenant success and increase overall visitor spending, making transformation not just necessary but a strategic advantage.” 

This is the next chapter in the history of the malls—stepping into a climate-controlled “small city,” an immersive lifestyle destination.