In a move that strengthens its presence in the Saudi Arabian real estate development sector, Laden Investment Company announced the signing of a significant contract to develop undeveloped land in the holy city of Mecca. This project, undertaken in partnership with Al Rajhi Brothers Group, reflects the mutual trust between major economic entities in the Kingdom.
Contract details and schedule
According to the official statement issued by the company on the Saudi Stock Exchange (Tadawul) website, the estimated value of the contract is approximately SAR 33.6 million (excluding VAT). The contract covers a vast area of 278,521.44 square meters of undeveloped land owned by Al Rajhi Brothers Group.
The agreement stipulates that Laden Investment will be responsible for developing the entire infrastructure of the land plot in exchange for a specified percentage of the development costs. The project's timeframe is set at up to 27 months, reflecting the scale and precision required to prepare the land for subsequent phases of the investment.
The importance of real estate investment in Mecca
This project is of particular importance due to its location in Mecca, the beating heart of the Islamic world and one of the most dynamic and attractive real estate markets for investment in the region. The real estate sector in Mecca is experiencing continuous and growing demand, driven by the steady increase in the number of pilgrims performing Hajj and Umrah, as well as the urban expansion taking place in the holy city.
Converting raw land into developed land with infrastructure is the first and essential step to creating residential and commercial projects that serve the city’s residents and visitors, thus helping to bridge the gap between supply and demand in the Makkah real estate market.
Alignment with the Kingdom's Vision 2030
Such projects align with the goals of Saudi Vision 2030, which places great emphasis on developing infrastructure and encouraging private sector participation in urban development. The construction sector is a key driver of the non-oil economy, with real estate development projects contributing to job creation, stimulating supporting industries, and improving the quality of life in Saudi cities.
Expected financial impact
Financially, Laden Investment Company explained that this project is expected to positively impact its financial results during the two-year and one-quarter implementation period. This contract strengthens the company's project portfolio and underscores its competitiveness in executing major infrastructure projects, thus supporting its strategy for sustainable growth and delivering attractive returns to shareholders.
