The US coffee giant is in talks to open a flagship store at a $62.2bn residential, retail and tourism development in Diriyah
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Starbucks CEO Brian Niccol (left) with representatives from Alshaya Group and Diriyah Company | Photo credit: Alshaya Group
Starbucks CEO Brian Niccol has met with Alshaya Group and Diriyah Company to explore a potential retail partnership at the Diriyah giga-project in Saudi Arabia.
Saudi Arabia’s Public Investment Fund is investing $62.2bn to build Diriyah, a historic town northwest of Riyadh, into a world-class cultural and lifestyle destination. Scheduled to be completed in 2030, the government-backed Diriyah giga-project has potential for more than 1,000 retail and hospitality outlets.
Kuwait-based Alshaya Group said it would welcome the opportunity to bring its ‘most iconic brand’ to the historic site, known for the At-Turaif UNESCO World Heritage Site.
Opening a flagship outlet in Diriyah would also strengthen Alshaya Group’s ties with Saudi Arabia, where it already operates 477 licensed Starbucks stores, while supporting the Kingdom’s Vision 2030, Executive Chairman Mohammed Alshaya added in a press release.
“Together with our long-standing partner, Alshaya Group, we are exploring opening a one-of-a-kind flagship Starbucks in Diriyah. We want to create a unique destination that blends the best of local culture with the great coffee and human connection we are known for around the world,” said Brian Niccol, Chairman and CEO, Starbucks Coffee Company.
Kuwait-based Alshaya Group became Starbucks’ franchise partner in the Middle East and North Africa (MENA) in 1999 and currently operates over 2,000 stores across 13l markets in the region.
In February 2025, Niccol outlined plans to open 500 new stores in the MENA region, reaffirming Starbucks’ commitment to the region after a difficult year of trading due to consumer boycotts of Western brands, which are now easing,
Established in 2022, Diriyah Company is one of Saudi Arabia’s Public Investment Fund companies and is the sole organisation behind the Diriyah giga-project. The first part of the project, premium fine dining destination Bujairi Terrace, opened in December 2022. Danish coffee chain Joe & The Juice, Dolce & Gabbana cafe concept DG Caffè and pasticceria brand Cova all operate at Bujairi Terrace.