Umm Al Qura Development and Construction Company, the owner and developer of the “Masar” destination in Makkah, announced today, Thursday, an important strategic step to ensure the continuity of work on one of the largest projects in the Holy Capital, as it assigned the completion of the superstructure development projects for the two development packages (A) and (B) to new contractors with a total value exceeding 4.1 billion riyals.
The new contracts include the completion of seven hotel towers and two shopping centers spread across eight strategic plots of land within the destination. Mounis Mohammed Al-Shaib & Partners for Civil Works (MOPCO) and BIC Arabia Contracting were selected to carry out these works after the company terminated its contract with the previous contractor due to significant breaches of contract, as previously announced on the Saudi Stock Exchange (Tadawul) website on November 19, 2025.
Details of contracts and development packages
According to the financial statements for the signed contracts (excluding VAT), the value of Development Package A is approximately SAR 3.2 billion. This package includes the construction of four hotel towers and two shopping centers to be developed on six plots of land in the first phase of the Masar destination. This major contract was awarded to the main contractor, Mobco, with a completion period of up to 30 months.
As for development package (B), valued at approximately 899 million riyals, it comprises three hotel towers to be constructed on two plots of land in Zone 3 of the destination. BIC Arabia Contracting Company won the contract to complete this project, with a similar 30-month implementation period.
Destination path: A key pillar of Vision 2030
This step is of paramount importance given the strategic location of the Masar destination and its vital role in the urban development of Makkah. The Masar destination (formerly the King Abdulaziz Road project) is one of the most significant mega-development projects aimed at improving the quality of life for Makkah residents and visitors, and facilitating the movement of pilgrims performing Hajj and Umrah.
The project spans 3.65 kilometers in length and 320 meters in width, connecting the Third Ring Road with the central area surrounding the Grand Mosque in Mecca. The completion of these hotel towers is an integral part of the Kingdom's preparations to achieve the goals of Saudi Vision 2030, which aims to attract 30 million Umrah pilgrims annually by 2030, thus necessitating an increase in the hospitality and accommodation capacity of the Holy City.
Economic and developmental impact
The completion of these projects is expected to enhance Makkah's tourism infrastructure and provide visitors with a variety of modern accommodation options. The investment of over 4 billion riyals in construction contracts reflects the strength of the local economy and the attractiveness of Makkah's investment environment, driving development in the construction, operation, and support services sectors.
The swift appointment of new contractors after the termination of the previous contractor's contracts confirms Umm Al Qura Development and Construction Company's commitment to adhering to the project's timelines and ensuring the delivery of a real estate and urban product befitting the global and Islamic status of Makkah Al-Mukarramah.
