In a move that strengthens its presence in the real estate development sector in the Kingdom of Saudi Arabia, Sumou Real Estate Company announced the signing of a new contract with the Holy Capital Municipality, aimed at completing the development work and implementing the infrastructure for the “Al-Shara’i Grants” scheme No. 17, located in the eastern part of Makkah.
In an official statement published on the Saudi Stock Exchange (Tadawul) website, the company explained that the project spans a vast area of 674,163 square meters. Under the agreement, Sumou will undertake all necessary infrastructure work to prepare the development, in exchange for 7% of the total net area of the residential plots upon completion. This translates to approximately 62 residential plots with a total area of 32,522.80 square meters.
The importance of the location and the strategic dimension of the project
This project is of particular importance due to its strategic location in eastern Makkah, specifically in the Al-Shara'i district, a vital residential area experiencing rapid urban expansion and increasing population density. The infrastructure development within this scheme is part of ongoing efforts to enhance the quality of life and provide a fully serviced residential environment for citizens, aligning with the urban development objectives of the Holy City.
This contract also reflects the Kingdom's general trend toward strengthening public-private partnerships (PPPs), as municipalities and government agencies increasingly rely on the expertise of private sector real estate developers to accelerate the completion of infrastructure and housing projects. These partnerships contribute to achieving the goals of Vision 2030 related to increasing the supply of real estate, raising homeownership rates among citizens, and developing the urban landscape of Saudi cities.
Time period and financial impact
Regarding the timeline, the agreement stipulates a 36-month contract period, commencing from the date Sumou Real Estate Company takes possession of the land designated for development. The company anticipates that this project will positively impact its financial results, noting that the financial effect will begin to materialize from the date the company takes ownership of the allocated land plots under the contract. This will strengthen the company's asset portfolio and support its future growth in the dynamic Saudi real estate market.
