Umm Al Qura Development and Construction Company, the owner and developer of the “Masar” destination in Makkah, announced the signing of an agreement to sell a plot of land within its flagship project for a total value of SAR 89.46 million. This transaction represents a significant strategic step in the destination's development plans, which aim to enhance the infrastructure and services in the Holy City.
According to a statement issued by the company and published on the Saudi Stock Exchange (Tadawul) website, the sold plot of land measures 2,915.80 square meters. The transaction was between Alinma Development Company II Limited (the seller), a special purpose vehicle wholly owned by Umm Al Qura Company, and Al Diyar Al Arabiya Real Estate Development Company (the buyer), which will develop a residential tower on the land, adding a vital new component to the destination.
The general context of the “Destination Path” project
The “Masar Destination” project is one of the largest urban development projects in the Kingdom of Saudi Arabia and represents a pivotal part of the Kingdom’s Vision 2030 and the Guests of God Service Program. The project aims to transform Makkah by creating advanced infrastructure that facilitates the movement of pilgrims, Umrah performers, and visitors, and enhances the quality of life for the city’s residents. Spanning over 1.2 million square meters, the project includes pedestrian walkways, modern transportation options, thousands of hotel and residential units, and integrated commercial, cultural, and entertainment areas, all in close proximity to the Holy Mosque.
The importance of the deal and its expected impact
This deal is of paramount importance on several levels. Locally, it reflects investor confidence in Makkah's real estate market and the viability of the major development projects launched by the Kingdom. The development of a new residential tower will contribute to providing modern housing options, creating direct and indirect job opportunities, and stimulating the region's economic activity. Regionally and internationally, the continued flow of investments into the Masar Destination reinforces Makkah's position as a leading global center for religious tourism and underscores the Kingdom's commitment to providing an exceptional and accessible experience for the millions of Muslims who visit annually.
Umm Al Qura Company indicated that the book value of the land is approximately SAR 40.3 million, meaning that the sale represents a capital gain. The company anticipates that the transaction will have a positive financial impact on its liquidity and financial results, as the proceeds will be used to finance working capital and existing projects within the “Masar Destination” project, thus accelerating the completion of this massive urban development.
