Starbucks CEO Brian Niccol has met with Alshaya Group and Diriyah Company to explore a potential retail partnership at Saudi Arabia’s Diriyah giga-project.

The US$62.2 billion development includes 566,000sqm of lifestyle retail and F&B offerings, bringing together more than 1,000 retail outlets and dining concepts. 

Kuwait-based Alshaya Group has been the coffee chain’s long-time franchise partner in the Middle East and North Africa (Mena).

It has operated Starbucks stores in Mena since 1999 and runs more than 2000 outlets across 13 markets.

Executive chairman Mohammed Alshaya said that opening a flagship location in Diriyah would reinforce the company’s regional presence.

“We welcome the opportunity to discuss bringing our most iconic brand to such a historically important site as Diriyah,” he continued. “Our intention symbolises our links to Saudi Arabia and support of the Kingdom’s Vision 2030.”

In February, Niccol outlined plans to expand further in the region with 500 new stores, following a challenging year marked by consumer boycotts of Western brands, which are now easing.

“Together with our long-standing partner, Alshaya Group, we are exploring opening a one-of-a-kind flagship Starbucks in Diriyah,” said Niccol. “We want to create a unique destination that blends the best local culture with the great coffee and human connection we are known for worldwide.”

Diriyah Company –  established in 2022 as part of Saudi Arabia’s Public Investment Fund –  is overseeing the giga-project’s development.

The first phase, Bujairi Terrace, opened in December 2022 as a fine dining destination featuring brands such as Danish coffee chain Joe & The Juice, Dolce & Gabbana’s DG Caffe, and Italian Pasticceria Cova.