Saudi Arabia Awards $3.5 Billion in Contracts for Mecca Expansion
Saudi Arabia's Royal Commission for Makkah City and Holy Sites awarded 13.3 billion riyals ($3.5 billion) in development contracts across six sites in Mecca covering 2.7 million square meters. The projects include residential, hotel, retail, and office spaces as part of the kingdom's strategy to increase annual Hajj and Umrah pilgrim numbers to over 30 million by 2030. The expansion reflects Saudi Arabia's continued investment in religious tourism infrastructure despite scaling back other megaprojects.
Saudi Arabia has awarded major development contracts worth $3.5 billion for expansion projects in Mecca, signaling continued commitment to the holy city's growth despite reported pullbacks on other ambitious initiatives like The Line. The Royal Commission for Makkah City and Holy Sites distributed contracts across six sites totaling 2.7 million square meters, with the largest award of approximately $1.6 billion going to a consortium of three local developers for two sites adjacent to the Masar mixed-use project. The developments will include homes, hotels, shops, and offices designed to support the kingdom's goal of tripling annual Hajj and Umrah visitor numbers to exceed 30 million by 2030. This expansion comes as Saudi Arabia has opened its property market to foreign ownership, though Mecca maintains special restrictions preventing non-Muslim property ownership. Hajj pilgrim numbers increased this year despite ongoing regional conflicts, indicating sustained demand for religious tourism infrastructure.
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Saudi Arabia continues expansion of Mecca with new development contracts
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