In a strategic move aimed at accelerating the pace of development in one of the most important development projects in Makkah, Umm Al Qura Development and Construction Company, the owner, developer and operator of the “Masar Destination” project, announced the signing of important financial and investment agreements to strengthen its financial position and expand the scope of its hotel projects.
Credit facilities with Al Rajhi Bank
In a statement to the Saudi Stock Exchange (Tadawul), the company announced the signing of a Sharia-compliant revolving credit facility agreement with Al Rajhi Bank for a total value of SAR 500 million. This facility, which has a term of 12 months, aims to finance the company's general working capital requirements, thus providing it with greater financial flexibility in managing its cash flow.
The company explained that the financing was secured by mortgaging real estate deeds and a promissory note for the value of the facilities, stressing that no amounts from these facilities have been withdrawn or used up to the moment of the announcement, indicating that this step comes as a proactive measure to ensure the availability of the necessary liquidity for the next stages.
Partnership to establish a new real estate fund
In a related development concerning real estate products at the destination, Masar announced the signing of a non-binding memorandum of understanding to establish a real estate fund with a target capital of SAR 221 million. The memorandum was signed between Alinma Tatweer Al Awal Limited (a subsidiary of Umm Al Qura), Manjam Financial Business Development Company, and Ajbal Real Estate Development Company.
The new fund aims to develop premium hotel units on a plot of land within the Masar destination. Under the six-month renewable memorandum of understanding, Managem will manage the fund, Ajbal will act as the real estate developer, and Alinma will contribute the land as an in-kind share.
Pathway: Strategic Dimension and Economic Importance
These agreements gain their significance from the strategic importance of the "Masar Destination" project in Makkah. The project represents a new urban landmark for the holy city, stretching 3.65 km along King Abdulaziz Road and connecting the Third Ring Road with the central area of the Grand Mosque.
This financial and investment activity is in line with the goals of the Kingdom’s Vision 2030, which seeks to increase the capacity to receive pilgrims to 30 million Umrah pilgrims by 2030. The infrastructure and real estate development projects in “Masar” play a pivotal role in improving the quality of life and enriching the experience of visitors and pilgrims, by providing modern housing and hotel options and integrated services.
The cooperation of “Umm Al Qura” with major financial institutions such as Al Rajhi Bank and specialized development companies also reflects the high confidence in the investment environment in Makkah Al-Mukarramah, and the economic feasibility of the existing projects there, which enhances the attractiveness of the real estate sector in the western region and contributes to the diversification of the national economy.
