Saudi Arabia's holy cities are drawing a fresh wave of private capital, with investment firm Jadwa Investment aiming to nearly double its real estate assets under management to SR50 billion over the next five years. In remarks reported by Arab News on July 6, 2026, the firm cited strong long-term demand for housing and hospitality near the Grand Mosque as the driving force behind its expansion.
A SR30 billion pipeline for the holy cities
Haitham Al-Ghannam, Jadwa's head of real estate and alternative investments, said the company plans to grow its real estate portfolio from about SR26 billion today to SR50 billion, or roughly 13.3 billion dollars, within five years. He said real estate already represents around a quarter of clients' total assets.
Jadwa was among the consortiums awarded projects under the Royal Commission for Makkah City and Holy Sites, whose second phase of developed neighbourhoods awarded contracts for seven sites through public-private partnerships worth more than SR16.3 billion. The firm subsequently launched two real estate development funds in Makkah worth up to SR10 billion, in partnership with several Saudi developers. The funds will build in Makkah's central area, specifically the Al-Hajlah and Eastern Al-Hindawiyah districts near the Grand Mosque.
Al-Ghannam signalled far larger ambitions, saying the company aims to invest around SR30 billion more in Makkah and Madinah over the next three to five years. He described the gap between supply and demand for high-quality projects near the Grand Mosque as a long-term structural opportunity.
Ladun launches SR4 billion Makkah fund
Jadwa is not alone. Saudi-listed Ladun Investment Co. is establishing a SR4 billion real estate fund to develop the Al-Khalidiyah district in Makkah, according to CEO Hassan Al-Hazmi. The project, developed in partnership with Al-Ayuni Contracting Co., carries projected sales of around SR7 billion. Al-Hazmi said the Al-Khalidiyah district accounts for about 20 percent of the total area designated for redevelopment by the Royal Commission.
Al-Hazmi pointed to strong underlying demand, noting that international tourists spent SR176 billion in Saudi Arabia during 2025, including SR110 billion in Makkah and Madinah, according to the Ministry of Tourism. He said balancing supply and demand is the foundation of long-term investment in the holy cities.
Aligned with Vision 2030 pilgrim targets
The surge in investment tracks Saudi Vision 2030 targets to raise annual Umrah capacity to 30 million pilgrims and to receive up to six million Hajj pilgrims each year. Meeting those numbers requires a major expansion of accommodation, particularly quality hotels and serviced residences within walking distance of the Grand Mosque.
Recent policy changes are helping. Saudi Arabia approved executive regulations allowing property ownership by non-Saudis in designated areas, opening the door to foreign capital, and is targeting 100 billion dollars in annual foreign direct investment by 2030. Together these steps are reshaping the skyline around the Haram.
What it means for pilgrims
For pilgrims, the building boom points to more hotel rooms and serviced apartments closer to the Grand Mosque in the years ahead, which over time may ease pressure on accommodation during peak seasons. In the near term, however, construction near the Haram can mean road diversions and noise, and demand continues to outpace supply during Ramadan and the Hajj season. Book accommodation early, confirm the walking distance to the Grand Mosque before paying, and factor ongoing redevelopment into your plans when choosing where to stay.