Six Mecca projects granted for development

Saudi Arabia’s Royal Commission for Makkah City and Holy Sites has awarded six urban development areas in the holy city of Mecca.

The sites cover a total area of more than 2.7 million square metres with a combined project value estimated at SAR13.3 billion ($3.5 billion), the commission said on X.

The sites, in South Jurhum, Al Khalidiyah, Al Hajlah, East Hindawiyah, South Hindawiyah and West Hindawiyah, were awarded to several investment and development consortia. No investor names or project details were disclosed.

The projects will go through a number of regulatory and technical stages, which include obtaining approvals for plans, studies and implementation requirements.

The move is to promote sustainable urban development and enhance life quality in Mecca in line with Vision 2030, the commission said.

In April Saudi Energy, formerly Saudi Electricity, and Acwa Power signed a SAR11.5 billion power purchase agreement with the state-owned Saudi Power Procurement Company to expand a power plant in Mecca.

In October 2025 the Saudi Railway Company announced the establishment of a SAR6 billion real estate fund to develop a mixed-use project based on the transit-oriented development model in Mecca.

Mecca and Medina in western Saudi Arabia are home to Islam’s two holiest sites, which pilgrims from among the world’s 2 billion Muslims visit for the annual Hajj or the months outside of it, known as the Umrah.

Saudi Arabia is looking to attract more religious tourism, with Hajj and Umrah visitor numbers expected to triple to more than 30 million annually by 2030.

Further reading:

• Governments shield Hajj pilgrims from rising costs
• War exposes Gulf tourism’s need for a new approach
• Saudi Energy and Acwa to spend $3bn on Mecca power plant