A $26 billion project aims to bring more Muslims to the holy city’s high-end hotels, residences, retailers, and restaurants, with more than 30 million religious tourists expected to visit the Kingdom by 2030.
The government is homing in on religious tourism because the demand already exists, with Saudi Arabia home to Islam’s two most holy cities, Makkah and Medina. Bahrain-based economist Omar Al-Ubaydli explains: “Saudi Arabia never has to worry about foreign competition, as there is only one Makkah and only one Medina. This is a great foundation for building a successful income source. Enabling people to shop, visit museums, and attend conferences while performing Umrah is a great strategy for income growth.”
For more than a decade, frantic construction has altered Mecca’s center, with fields of skyscrapers encircling the Grand Mosque, Islam’s holiest shrine. The imposing Makkah Royal Clock Tower, the fourth tallest building in the world, stands in front of the mosque’s main entrance.
“Saudi Arabia never has to worry about foreign competition, as there is only one Makkah and only one Medina”
During the Hajj and Ramadan seasons, hotels within walking distance or with a view of the Grand Mosque can demand extremely high prices. A Pullman, a Raffles, and other luxury hotels have already claimed the best positions. As a result, companies are targeting areas northwest and northeast of the Grand Mosque, with Umm Al Qura Road, for instance, ripe for development.
The ongoing construction of the $26 billion Masar Makkah development project will incorporate a 3.5-kilometer-long strip of hotels, residential buildings, parks, and malls leading up to the Grand Mosque area.
Hajj Ministry spokesman Ayedh al-Ghweinim has spoken about the work currently taking place, saying the government “is always keen to develop the Hajj and Umrah experience and improve the services provided.” He said development is ongoing “to keep pace with the numbers” of pilgrims coming from abroad and “provide an exceptional experience.”
According to the Global Data Construction Intelligence Center, 27 projects worth $25 million or more are currently under construction in Makkah. Thirteen of these are in the hospitality, retail, and residential sectors, with the remainder in transportation.