Saudi Arabia’s recent move to allow non Saudis to own property in Makkah is due to boost foreign demand in Makkah, according to Masar CIO Tariq Sharaf.
Sharaf highlighted a strong interest from foreign investors with hopes of Masar Destination to be included in designated zones.
Located close to the Haramain Rail Station and Al Haram, Masar Makkah has attracted over SAR 38 billion in investments and is fully infrastructure ready with multiple plans underway.
Boosting Foreign Demand in Makkah
Saudi Arabia’s recent policy shift allowing non-Saudis to acquire property in Makkah marks a significant turning point in the Kingdom’s real estate landscape.
This initiative is expected to stimulate demand, particularly in the Masar Destination project, as highlighted by Tariq Sharaf, the Chief Investment Officer of Umm Al Qura for Development and Construction Co. (Masar).
Tariq Sharaf has been instrumental in driving the vision for the Masar Destination. His insights into market dynamics and investor interests have shaped the project’s strategic direction.
Sharaf emphasizes the importance of including the Masar Destination within the designated geographic zones to maximize its potential.
Investor Confidence in Masar Makkah
Sharaf’s confidence in the project is echoed by the strong interest from foreign investors. Masar Destination’s strategic location and comprehensive development plans make it an attractive investment destination in Makkah. The demand from non-Saudis is expected to further enhance the project’s viability.
Masar Makkah’s Land Plans
Looking ahead, Masar plans to execute 10 land reservation contracts in 2026, valued at over SAR 1.9 billion. These contracts will provide investors with greater flexibility, allowing them to secure financing and complete necessary designs before making land purchase payments.
This approach is expected to yield positive returns for investors and contribute to the overall success of the Masar Destination.
Understanding the New Ownership Regulations
The Saudi government has introduced regulations that permit foreign nationals to own property in specific areas of Makkah. This decision aligns with the Kingdom’s Vision 2030 initiative, which aims to diversify the economy and enhance foreign investment.
The new ownership framework is designed to attract international investors, thereby boosting the local economy and increasing the vibrancy of the real estate sector.
Geographic Zones for Ownership
The regulations specify designated geographic zones where non-Saudis can purchase property. These zones are strategically selected to maximize investment potential and ensure that developments align with the Kingdom’s broader economic goals.
The announcement of these zones is expected to occur in the first quarter of the year, creating anticipation among potential investors.
Implications for Non-Saudis
For non-Saudis, this policy opens up new avenues for investment in one of the most significant religious and cultural centers in the world. The ability to own property in Makkah not only enhances investment opportunities but also allows foreign nationals to participate in the Kingdom’s economic growth.
MASAR Makkah Destination
Project Overview
The Masar Destination is a flagship development located near the Haramain Rail Station and Al Haram, designed to cater to pilgrims and tourists. With an investment exceeding SAR 38 billion, this project is poised to become a central hub for visitors to Makkah.
The infrastructure is fully developed, with multiple projects already underway, showcasing the commitment to creating a world-class destination.
Infrastructure Readiness
Masar is fully equipped with the necessary infrastructure to support its ambitious plans. The project features 74 activated plots and is home to 23 developers working on various flagship projects.
This readiness not only enhances the attractiveness of the Masar Destination but also ensures that investors can begin operations without delay.
Strategically positioned only 550 meters from the Holy Mosque and 100 meters from the Haramain Station, it will span 3.5 kilometers along the western border of Makkah. MASAR Makkah covers approximately 641,000 square meters, with a total gross floor area (GFA) of 5.7 million square meters.
MASAR’s architectural concept blends modern design with traditional Islamic aesthetics, creating a harmonious urban environment that respects Makkah’s spiritual significance.
The project features a mix of low-rise and high-rise structures, with careful consideration given to sight lines and the visual impact on the holy sites.
Residential and Hospitality Components
The centerpiece of this project is the Residential Towers, which showcase the ambitious vision of Masar Destination.
In September 2023, Umm Al-Qura announced a collaboration with Scope Properties to construct Residential Towers in Makkah, a project worth $240 Million (SAR900 million).
Upon completion, MASAR will offer more than 50,000 hospitality and residential units, catering to a diverse range of needs and preferences and it will feature 41,000 rooms total in hotels, apartments, and 9,000 residential units for sale.
The residential offerings will include apartments, villas, and serviced residences designed to accommodate both permanent residents and pilgrims seeking extended stays.
Retail and Commercial Spaces
MASAR’s commercial strategy includes the development of extensive retail spaces, creating a vibrant shopping and dining destination. The retail offerings will cater to both local residents and international visitors, featuring a mix of global brands and local businesses.
Office spaces within the development will provide modern work environments for businesses looking to establish a presence in Makkah. These commercial areas are designed to support the growth of the local economy and create employment opportunities for residents.
Infrastructure and Public Amenities
A key component of the MASAR project is the development of state-of-the-art infrastructure to support the needs of residents and visitors. This includes advanced transportation systems, utilities, and telecommunications networks designed to handle the high-density urban environment.
Public amenities planned for MASAR include a large central mosque, healthcare facilities, educational institutions, and cultural centers. These amenities aim to create a self-contained community that enhances the quality of life for residents and provides comprehensive services for pilgrims.
Supporting Vision 2030
The introduction of foreign ownership in Makkah aligns with Saudi Arabia’s Vision 2030, which aims to diversify the economy away from oil dependency.
By attracting foreign investment, the Kingdom seeks to build a more sustainable economic model that fosters growth across sectors such as real estate, tourism, and hospitality.
Makkah is already a significant pilgrimage destination, drawing millions of visitors each year. The new ownership regulations are expected to enhance the tourism experience by providing more accommodation options and services for visitors.
This influx of tourists will not only benefit the Masar Destination but also the surrounding businesses and communities.
Shaping Real Estate in Makkah
The recent policy change allowing non-Saudis to own property in Makkah is a transformative step for the Kingdom’s real estate market. With the Masar Destination at the forefront of this initiative, the potential for economic growth and development is substantial.
As foreign investors express interest in this unique opportunity, the implications for Makkah’s economy, tourism, and local businesses are exciting and will possibly shape the real estate in Makkah.
More Redefining Hospitality Projects in Makkah
Address Hotel Jabal Omar
The 5-star Address Jabal Omar Makkah Hotel provides a luxurious stay, dining options, and other amenities, making it a spiritual sanctuary in the center of Makkah. Just 1640 feet from Masjid Al Haram, the hotel offers a fitness center, private parking, a shared lounge, and a restaurant for its guests.
The 5-star Address Hotel in Jabal Omar Makkah has also revealed Sky Musallah, the highest prayer room in the world, located within a sky bridge.
It has earned a Guinness World Record at an impressive 483 meters above sea level. The Sky Musallah offers stunning panoramic views of Al Masjid Al Haram, The Holy Kaaba, and Makkah City.
The sky bridge connects the two twin towers of The Address Jabal Omar Hotel, spanning the 36th to 38th floors, and has a capacity of 520 people. It is a remarkable lookout point for guests staying at this iconic and centrally located hotel in Makkah.
Jabal Omar Development
The Jabal Omar Development Project, an 8 Billion SAR project, is a one-of-a-kind initiative focused on revitalizing the urban area to offer high-quality lodging and facilitate religious, social, and business amenities and resources for both tourists and inhabitants of the sacred city of Makkah Al-Mukarramah.
By 2030, Jabal Omar Development Company plans to run 15 hotels across 230,000 square meters of area. These hotels will offer a direct view of Al Masjid Al Haram, providing guests with a convenient and spiritually enriching experience.
Jumeirah Jabal Omar Hotel
The Jumeirah Jabal Omar Hotel in the Holy City of Makkah, the first hotel in Saudi Arabia by the Jumeirah Hotel group from Dubai, has been officially announced to be open.
Located in the second phase of the Jabal Omar development, the hotel is positioned in the heart of Jabal Omar near the Grand Mosque, Al Masjid Al Haram.
Featuring more than 1000 rooms and suites, some offering direct views of the haram, the hotel strives to provide extraordinary experiences to pilgrims on their Hajj and Umrah journeys.
Renowned Hotels in Jabal Omar Makkah
- Jabal Omar Hyatt Regency Makkah Hotel
- Hilton Suites Makkah Hotel
- Conrad Makkah
- Hilton Makkah Convention Hotel
- DoubleTree by Hilton Makkah Jabal Omar Hotel
- Jabal Omar Marriott Hotel Makkah
Courtyard by Marriott Hotel
Marriott International has signed an agreement for a new 1,100 room Courtyard by Marriott in Makkah’s Masar Destination to mark its 100 combined open and pipeline hotels in Saudi Arabia.
Spanning a massive 4,500 sqm, the new Courtyard by Marriott hotel is due to offer modern hospitality, luxury dining, event spaces, and family facilities.
It is set to open in 2030 and aims to support Saudi Vision 2030 to enhance Makkah’s services and capacity to accommodate millions of pilgrims each year.
King Salman Gate Project
The Saudi Crown Prince has launched ‘King Salman Gate’, a mega 12 million sqm project in Holy Makkah next to The Grand Mosque, which will provide capacity for an additional 900,000 worshippers.
Located right next to Al Masjid Al Haram. , it is due to feature commercial, cultural, and residential spaces, including 16,000 branded 4 and 5 star hotel rooms. It is due to massively increase the number of Makkah hotels close to Haram.
It aims to create over 300,000 jobs by 2026 and the boost the pilgrim experience, Insha’Allah.
Courtyard by Marriott Hotel Makkah
Marriott International has signed an agreement to launch the largest Courtyard by Marriott hotel in the world in Holy Makkah in Saudi Arabia.
Marriott is teaming up with BinDawood Trading subsidiaries to open the hotel in the Al Naseem district of Makkah in 2026, InshaAllah.
Scheduled to be named Courtyard by Marriott Makkah Al Naseem, the hotel is set to feature 2,179 keys and an 1,800 capacity restaurant.
The project supports Saudi Arabia’s Vision 2030 goals to host 30 million Hajj and Umrah pilgrims each year by 2030.
Opening of Park Inn by Radisson Makkah
Radisson Hotel Group has introduced the Park Inn by Radisson Makkah Thakher Algharbi, further strengthening its footprint in the Holy City.
Situated within the Thakher City development, just 2.1 km from Al Masjid Al Haram, the hotel boasts 161 upscale rooms and provides a round-the-clock shuttle service to the Grand Mosque in Makkah.
The Thakher Makkah project is designed to host up to 1.6 million pilgrims once fully completed.
Abraj Omar Hotel & Residences in Makkah
Accor, a top global hotel brand, has announced the Abraj Omar Hotel & Residences in Makkah, an MGallery Collection hotel in collaboration with Alesayi Holding Group.
Opening in 2028, this luxury boutique property will include 276 hotel rooms and 214 residences for sale.
The design will incorporate Islamic heritage themes, with the first floor dedicated to Omar Ibn Al Khattab, the second caliph of Islam.
Voco Makkah
To provide for religious travelers’ needs during the Hajj or Umrah seasons, IHG Hotels & Resorts has launched its premium Voco brand in Makkah. Voco Makkah is the third Voco property in Saudi Arabia and the largest globally, with 4,321 keys.
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