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Home » Real Estate » Makkah’s Masar Destination Receives 7 Million Boost For Makkah’s Hospitality Sector
Makkah’s Masar Destination Receives $667 Million Boost For Makkah’s Hospitality Sector
Makkahs Masar Destination Receives $667 Million Boost For Makkahs Hospitality Sector

Makkah’s hotel landscape is set for a transformative upgrade with a $666.6  million investment in the much anticipated new Masar destination. 

A collaboration between Umm Al-Qura for Development and Construction Co., who are the owners of the Masar Destination, and the General Authority of Awqaf promises over 1,000 new luxurious hotel rooms in the Holy City of Makkah  

The agreement was signed during the Hajj and Umrah Services Conference and Exhibition 2024 in Jeddah and is due to revolutionize Makkah’s hospitality sector Insha’Allah.

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The Collaboration

Image Credit Umm Al Qura

The agreement was inked during the Hajj and Umrah Services Conference and Exhibition 2024, outlining plans for a major hospitality project in Makkah. 

The collaborative effort between Umm Al-Qura and GAA is expected to bring significant returns on endowment assets while enriching the guest experience at the Masar destination.

A Commitment to Economic and Social Development

Image Credit Umm Al Qura

Beyond enhancing accommodation options, the collaboration is also dedicated to driving economic and social development in the region.

 Moreover, it aligns with the broader goals of Saudi Vision 2030, seeking to contribute to the kingdom’s economic diversification, enhance the quality of life in Makkah, and support the hospitality sector.

A Testament to Urban Growth

Image Credit Masar Makkah

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). 

This project, developed in coordination with private-sector investors and state-owned funds, further solidifies the commitment to Makkah’s urban growth.

The Masar Destination

Image Credit Masar Makkah

This investment is channeled into the ambitious Masar project, poised to redefine the city’s hospitality sector, emphasizing religious tourism infrastructure. 

The collaboration aims to introduce over 1,000 new hotel rooms and suites to the province, enhancing its accommodation offerings.

Image Credit Masar Makkah

The Masar Destination is a prime example of Saudi Initiative Destination Making, designed in line with global urban planning practices and fit for the next century. 

This approach goes hand-in-hand with Saudi Arabia’s Vision 2030’s broader objectives, which emphasize creating a vibrant, inclusive, and flexible economy.

“The prosperity of modern civil society is not restricted to economic growth. Instead, it should create an integrated ecosystem that offers well-being, safety, security, and meets humanity’s needs.” – Mr. Yasser AbuAteek, CEO of Umm Al Qura for Development and Construction

A Platform for Investment

Image Credit Umm Al Qura

MASAR Destination is not just about creating an urban destination. It’s also about creating a first-of-its-kind investment platform in Makkah that attracts diversified investments from various sectors, thereby enhancing the social impact of the destination.

Over the past year, Umm Al Qura has attracted institutional investors to invest in MASAR. The total volume of investments has now exceeded 35 billion Saudi Riyals, contributing to 21% of the total land investment in the destination across various sectors.

Masar: More Than Just a Project

Image Credit Masar Makkah

However, Masar is much more than a hospitality project in Makkah. It embodies an urban vision of development and investment that sets high standards in the industry. 

Image Credit Masar Makkah

Masar has attracted institutional investment partnerships, aligning with the kingdom’s strategy to diversify the hospitality sector and support national economic development plans.

Hotel Units

Image Credit Masar Makkah

The development will feature an impressive number of hotel units. With a capacity of 24,000 rooms, the hotels can accommodate many visitors, catering to the city’s growing tourism industry.

Retail and Commercial Units

Image Credit Masar Makkah

In addition to residential and hotel units, Masar Destination will also host a variety of retail and commercial units. These units will provide residents and visitors with various shopping and dining options.

Partnerships and Alliances

Image Credit The PIF

The project is being developed with several private and state-owned investment fund investors. These include the Public Investment Fund (PIF), Ministry of Finance, Public Pension Agency, General Organization for Social Insurance, and General Authority of Awqaf.

A New Era in Hospitality

Image Credit Masar Makkah

As Makkah positions itself for a new era in hospitality, the collaborative efforts between Umm Al-Qura and GAA represent a significant milestone. 

The $666.6 Million (SAR2.5 billion) investment into the hospitality sector addresses the immediate need for enhanced accommodation. It lays the foundation for Makkah’s sustained economic and social development, aligning with Saudi Arabia’s Vision 2030 forward-looking goals.

With the anticipated transformation, Makkah’s hospitality landscape is expected to improve significantly, attracting more visitors and boosting the region’s economy. This massive investment marks a new chapter in Makkah’s hospitality industry, signaling a brighter and more prosperous future.

Keep Reading: Masar Makkah Signs $240 Million Deal For Residential Towers In Makkah

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