RIYADH: Saudi Arabia’s hospitality sector is set to receive a significant boost with local developers planning investment worth SR2.5 billion ($666.6 million) in Makkah.
This substantial expenditure was cemented through an agreement between Umm Al-Qura for Development and Construction Co., the owner of the Masar destination, and the Kingdom’s General Authority of Awqaf.
The collaboration aims to develop a distinctive hospitality project in Makkah, expected to add more than 1,000 hotel rooms and suites to the province’s accommodation offerings.
The agreement was signed in the presence of Makkah’s Deputy Gov. Prince Saud Al-Saud, during the Hajj and Umrah Services Conference and Exhibition 2024.
The event, recently opened in Jeddah, highlights the region’s commitment to enhancing its religious tourism infrastructure.
Yasser Abuateek, CEO of Umm Al-Qura for Development and Construction Co., and Imad Al-Kharashi, governor of the General Authority for Awqaf, led the signing ceremony.
The signing of the deal was also witnessed by prominent figures including Tawfiq Al-Rabiah, Saudi minister of Hajj and Umrah.
The partnership is expected to yield significant returns on endowment assets. It aims to enrich the guest’s experience at the Masar destination and to drive forward the region’s economic and social development.
The project will also contribute to the Saudi Vision 2030 goals of diversifying the Kingdom’s economy and enhancing the quality of life in Makkah.
Masar represents an urban vision of development and investment, setting high standards in the hospitality industry. Its role in enhancing life quality in Makkah and its success in attracting various institutional investment partnerships are key to the Kingdom’s strategy of diversifying its hospitality sector to support national economic development plans.
In September 2023, Umm Al-Qura announced that it had reached an agreement with Scope Properties for the construction of residential towers in Makkah at a total investment of SR900 million.
This project is being developed in co-ordination with investors from the private sector and state-owned investment funds including Public Investment Fund, Ministry of Finance and Public Pension Agency as well as the General Organization for Social Insurance and the General Authority of Awqaf.
