''Makkah investments may cross SR937 billion mark''
9 October 2011
MAKKAH – Billions of dollars are likely to be invested by international companies in Makkah’s unplanned districts and the area around the Grand Mosque over the next few years, according to a forecast by officials and developers. One expert has even predicted that investments will break the $250 (SR937.5) billion barrier.
Dr. Osama Al-Bar, Makkah Mayor, said the plan to develop the city’s unplanned districts, drafted two years ago, is likely to see an inflow of $30 billion over the coming six years, according to a report in Asharq Al-Awsat.
Al-Bar said during the coming period several contracts would be signed between developers and Al-Balad Al-Amin Company, the investment arm of the Makkah Mayoralty. This confirms that the project is progressing according to plan.
Al-Bar said that Makkah’s religious status among Muslims has seen it weather various economic crises over the last few years. Its economy has “remained robust and out of the range of the storm”, he added. “Furthermore, the care and attention by the state, under the leadership of King Abdullah, Custodian of the Two Holy Mosques, has enabled the city to make big strides toward first world [status],” Al-Bar said.
He said Prince Khaled Al-Faisal, Emir of Makkah, has a vision for the city to be the first in the Kingdom to have an internal and regional transportation system. The city is already on the verge of completing the Al-Mashair Train Project, he added.
Saad Al-Shareef, an expert on Makkah’s Central Area surrounding the Grand Mosque, said the city and its surrounding areas have “grown tremendously” in terms of real estate development. According to the latest estimates, the volume of investments in Makkah has risen to $250 billion and is likely to increase further as new investments are made, he added. He said Makkah’s real estate is not affected by seasonal shifts.
“The Kingdom enjoys an absolute advantage, with which no other country can compete – the existence of the Two Holy Mosques on its land. This ensures that real estate in these two cities is constantly in high demand by tens of millions of Muslims who come to perform Haj and Umrah or visit the Prophet’s Mosque in Madina during the Haj period and in Ramadan.”
“Makkah is replete with land, which will be available for the youth towards Makkah Gate (Bawabat Makkah), according to a recent statement by the Makkah Mayor. Large areas of land will also be available towards the national recreation park to meet investment needs and for those who want to own land in Makkah. The whole area will be prepared and ready to support big opportunities,” Al-Shareef said.
Attallah Al-Hajjaji, a real estate expert, said Makkah is a “dynamic market for real estate because it is the heart of the Muslim world” and is seeing massive urbanization and preparations for development, particularly in the Haram area. “It is also witnessing tremendous population growth and an increase in the number of Haj and Umrah pilgrims.”
Al-Hajjaji said it was natural for prices to rise because this was governed by the law of supply and demand. When construction of the projects and buildings has been completed, prices will stabilize or at least return to acceptable levels.
He said there are always investment opportunities in Makkah because real estate in the vicinity of the Grand Mosque has always been in high demand.
Dr. Sultan Al-Mab’outh, a specialist academic at Umm Al-Qura University, said investment in Makkah will always remain strong. He said young people must be on the lookout for opportunities and not aggravate the economic, real estate and housing problems by relocating to other cities and regions. He said it was important to focus on investment opportunities based on clear strategies and economic feasibility studies.
