The future of retail in hot climates - spearheading outdoor retail models in the Middle East

Retail has always been a catalyst for human interaction. From ancient marketplaces to Middle Eastern souks, early retail acted as the social and economic heart of settlements. While these physical spaces have evolved over time into public squares, high streets and eventually shopping malls, their purpose has remained largely the same: to provide a place for people to gather, browse, share news, celebrate and build relationships.

The Middle East is now redefining 21st-century retail as a place to belong, catering to a ‘digital native’ generation seeking personalisation, purpose and experiences. From Saudi Vision 2030 to Dubai’s next-generation mixed-use districts, the region is shifting toward lifestyle-centred retail that blends commerce, culture and community.

Benoy’s expertise in retail design has seen us pioneer this philosophy in the Middle East, particularly outdoor retail environments that harness strategy and design techniques to overcome the challenges of hot climates.

Our previous projects Bujairi Terrace in Saudi Arabia and The Beach in the UAE, along with the upcoming Bahrain Marina, demonstrate how design can shape this new retail era in the region, returning to retail’s historical identity as the social and economic nexus of civilisation.

The Beach provided a new retail experience for Dubai akin to an urban village rather than a traditional indoor shopping mall. Given the city’s extreme climate, providing a comfortable environment that people would want to spend time in year-round posed a real challenge.

Going against the status quo, we drew on traditional, sustainable methods of moderating temperatures – harnessing passive cooling techniques to negate the need for energy-intensive air conditioning. Working with the climate rather than against it, we orientated the buildings to funnel prevailing winds and provide shading. Integrated water features and landscaping also naturally enhance the cooling effect of the cross breeze. A mix of tenants and seasonal programming help the development thrive year-round, while a mix of hybrid indoor-outdoor spaces ensure footfall continues beyond the cooler months.

The Beach established Dubai Marina as a retail and F&B destination, spearheading the open-air retail model in the UAE’s competitive economy. Its success has inspired other developments to follow suit and strengthened Benoy’s reputation in the Middle East, ultimately leading to ongoing commissions and lasting client relationships.

A cornerstone in Saudi Arabia’s Diriyah Gate Vision 2030, Bujairi Terrace had the potential to re-establish this historic city as a cultural and tourist destination in Saudi Arabia. In response to the site’s views of the Kingdom’s most important landmark, the At-Turaif World Heritage Site, our vision was to create a heritage-inspired pedestrian dining terrace befitting the historical location.

With the extreme heat in Riyadh, we were mindful that the al fresco spaces would be used well into the night. This meant the terrace needed to be visually striking 24/7, providing respite from the sun with planting and architectural shading before transitioning to a night-time economy with integrated chiaroscuro-inspired lighting. The result is a dramatic streetscape that feels distinctly modern yet firmly and authentically rooted in its place.

We drew on our extensive retail planning experience to devise a strategic approach, building on the immense success of The Beach in Dubai. With a similar brief to create an urban, open-air cultural destination, we designed the building massing and street planning to harness prevailing winds and the direction of the sun to passively control temperatures. We also integrated lush greenery to not only enhance the public realm’s visual beauty but also bolster opportunities for shading and intuitive wayfinding.

Bahrain, like Dubai and Riyadh, faces the challenge of hot, humid summers. Our task was to design an open-air lifestyle destination along the foreshore that could thrive year-round despite extreme conditions and seasonal footfall variations. Our strategy centred on mixing uses – including hospitality, residential, retail and leisure – and creating a network of permeable routes leading toward the marina’s edge, harnessing the prevailing winds to naturally cool the spaces between buildings and along the promenades.

From a commercial standpoint, we positioned F&B outlets along the waterfront, integrating terraces and outdoor dining spaces where the microclimate is naturally coolest and most comfortable. For the retail zone, we organised the provision along shaded pedestrian streets covered by a series of tensile canopies which provide protection from the sun while maintaining an open-air atmosphere. Parking is also provided beneath the entire development, allowing visitors to conveniently access the site at key entry points without exposure to the summer heat.

In collaboration with our thermal comfort engineers, we conducted CFD (computational fluid dynamics) analyses to test sustainable methods of improving comfort, exploring how heat transfers and air movement are impacted by building orientation, passive ventilation, shading devices, and landscape interventions. We also investigated selective outdoor cooling techniques at street level to further enhance the experience during the hotter months.

While the demand for the mega-mall still exists, people are increasingly prioritising convenience and accessibility over long commutes. But the community mall is no longer just a convenience offer – it’s the community hub which brings people together and offers new experiences for all.

The future of retail in the Middle East is experiential, inclusive, tech-enabled and deeply place-driven. It’s not about transactions; it’s about connection. With better environmental design, flexible built form, strategic activation, and a resilient tenant mix, open-air retail can operate successfully year-round and deliver stronger commercial performance despite climatic challenges.