Saudi Edition 
MENA+ Edition 
Egypt Edition 
UAE Edition 
MENA <> India Corridor 
Logistics (MENA) 
Climate (MENA) 
Share
Read Full Issue 
Makkah redevelopment push gathers pace: The Royal Commission for Makkah City and Holy Sites awarded SAR 13.3 bn worth of projects under its Developed Districts program, according to a statement on X. The projects span six sites across South Jurhum, Al Khalidiyah, Al Hajlah, East Hindawiyah, South Hindawiyah, and West Hindawiyah, covering more than 2.7 mn sqm.
IN CONTEXT- The redevelopment pipeline is expanding as Saudi Arabia opens the door to foreign property ownership in designated areas of Makkah and Madinah, a move expected to widen the investor pool. A Knight Frank survey found that 41% of global investors are interested in Makkah, with demand for the holy cities particularly strong among Muslim investors.
The breakdown
#1- Khalidiyah redevelopment: A consortium of Ladun Investment and Al Ayuni Investment and Contracting was awarded the Khalidiyah informal settlement redevelopment project. The project has a targeted sales value of more than SAR 6 bn, with contract signing expected on 9 June. The consortium will establish a closed-ended real estate fund to handle infrastructure works, subdivide the land into plots, and market them for sale. The scope includes master planning, engineering design, utility networks, roads, parks, and public spaces.
#2- Hindawiya West and South expansion: Makkah Construction and Development, Umm Al Qura for Development and Construction (Masar), and Al Rajhi United Real Estate were tapped for the Hindawiya West and South sites, spanning a combined 1.2 mn sqm with an initial estimated cost of SAR 6 bn. The project will be executed through a closed-ended real estate fund and will extend the Masar destination through new infrastructure development, with property owners offered either in-kind units or monetary compensation.
Who does what? Masar will lead the consortium and oversee development management, Makkah Construction will provide funding for property-owner compensation, and Al Rajhi United will serve as the technical partner responsible for delivering the development works.
#3- East Hindawiya mixed-use project: Dar Al Majd Real Estate, First Avenue Real Estate Development, and Rikaz Real Estate will develop the 235k sqm East Hindawiya site. The contract for the SAR 2 bn project is expected to be signed on 10 June and will be developed through a real estate fund managed by Jadwa Investment. The scheme will include residential, commercial, office, and hospitality assets. First Avenue holds a 45% stake in the consortium, followed by Dar Al Majd at 35% and Rikaz at 20%.
Why it matters
Makkah rebuild turns fund-driven: The projects point to a shift toward fund-based urban redevelopment, where private-sector consortiums finance and deliver large regeneration schemes. The structure helps speed up execution while channeling institutional capital into high-demand areas of Makkah.
