Developers double down on Syria reconstruction, Makkah redevelopment

Saudi capital is finding new homes in both reconstruction and redevelopment projects, as developers launch major housing schemes in Syria and take on another neighborhood regeneration project in Makkah.

A pair of projects in Syria

Abyat Real Estate launched two new developments in Damascus with combined investments exceeding USD 2 bn, according to state news agency Sana. Apartment subscriptions are expected to open within a month, pending final approvals, General manager Mohammed Al Solum told Alarabiya. The proceeds will be held in a joint escrow account between Syria’s Housing Establishment and the developer.

The details: Abyat Hills will be built in Damascus’ Qudsaya E3 suburb on a 379k sqm site and will include more than 2k residential units, with completion targeted within four years. The larger Modern Urban Cluster project will span 6 mn sqm in the Al Bajaa area and include around 20k units over an eight-year development period.

REMEMBER- Saudi companies have been steadily expanding into Syria since the Saudi-Syrian Investment Forum in July 2025, which saw SAR 24 bn in agreements signed, including SAR 7.2 bn in real estate. Momentum has continued since then, with around USD 6.4 bn worth of agreements moving forward in an investment roundtable in October across real estate, infrastructure, energy, and telecoms. Saudi firms have also taken on a diverse pipeline of projects tied to Syria’s reconstruction, pledging to drive bns of USD into the country over the next five years.

Our take: This is part of Riyadh’s new regional playbook. Rather than writing aid checks, the Kingdom is deploying Saudi companies into strategic sectors to secure an early commercial foothold in Syria while building long-term political and economic influence.

One more for Makkah’s redevelopment pipeline

AlRajhi takes on another Makkah redevelopment project: AlRajhi United Real Est ate is partnering with Maad International to redevelop Makkah’s Jarham South district, according to a post on LinkedIn. The development will cover more than 628k sqm and involve investments exceeding SAR 3.5 bn.

The details: The project falls under the Royal Commission for Makkah City’s (RCMC) Developed Districts Program (DDP) and will be financed through a real estate investment fund managed by a yet-to-be-named, CMA-licensed financial institution, Argaam reports. The redevelopment will include roads, water and sewage networks, electricity infrastructure, and telecommunications services.

ICYMI- AlRajhi is already involved in another Makkah redevelopment scheme through its partnership with Umm Al Qura for Development and Construction (Masar). That project covers the Hindawiya West and South sites, spans 1.2 mn sqm, and carries an initial estimated cost of SAR 6 bn. It is being executed through a closed-ended real estate fund and will extend the Masar destination through new infrastructure development.

The development pushes the DDP’s portfolio to over SAR 16.8 bn, after the RCMC rolled out SAR 13.3 bn worth of projects last week. They included Ladun and Al Ayuni’s Khalidiyah SAR 6 bn informal settlement redevelopment project and Dar Al Majd and First Avenue’s SAR 2 bn East Hindawiya development.