Sumou Real Estate, a leading real estate development company in Saudi Arabia, announced a new strategic step: the signing of a contract to develop, design, and construct a residential and commercial tower for the Areeb Sumou Makkah Real Estate Fund. The project is located in a prime location within the Jabal Omar district in the heart of Makkah, on a 3,066-square-meter plot of land, making it a valuable addition to the urban and real estate landscape of the Holy City.
According to the official statement issued by the company and published on the Saudi Stock Exchange (Tadawul), the contract was signed on January 29, 2024. The initial project costs were estimated at approximately SAR 423.35 million, excluding VAT. Under this contract, Sumou Real Estate will act as the project's master developer, receiving a development management fee of 10% of the total construction costs. This reflects the confidence in the company's experience and ability to execute projects of this scale. The project is scheduled to take 39 months to complete, commencing from the date the company receives the official notice to commence development work.
General context and importance of the Jabal Omar project
This project falls within the broader context of the Jabal Omar Development Project, one of the largest urban development projects in the Middle East. The Jabal Omar Project primarily aims to redevelop the area surrounding the Grand Mosque to increase the capacity of hotels, residential units, and commercial spaces, in order to serve the growing number of pilgrims and Umrah performers arriving in Mecca annually. This project forms an integral part of the modern infrastructure that the Kingdom seeks to provide for the pilgrims, thus giving any new project in this area significant strategic importance.
Expected impact and alignment with Vision 2030
The project is expected to have a multifaceted positive impact. Locally , it will contribute to providing luxury residential and commercial units that meet the growing demand in Mecca, in addition to creating direct and indirect job opportunities during the construction and operation phases. Nationally , the project aligns directly with the goals of Saudi Vision 2030 and the Guests of God Service Program, which aims to enhance the experience of pilgrims and Umrah performers and facilitate their accommodation. The project also strengthens the real estate development sector as a key pillar in the diversification of the Saudi economy. Internationally , this project reflects the Kingdom's commitment to investing in the development of the holy cities and providing the best services to the millions of Muslims who flock to them from around the world, thus reinforcing the Kingdom's position as the heart of the Islamic world.
“Sumou Real Estate” expects the positive financial impact of the project to begin to appear in its financial results as development work commences, which promises to boost its revenues and increase its profits in the coming years, and support its financial position in the market.
