Makkah has launched one of the largest urban development programs in the holy city's history, with the Royal Commission for Makkah City and Holy Sites signing agreements on Tuesday, July 1, to redevelop seven central districts. The projects span more than 4.4 million square meters and are backed by over SR16.3 billion (about $4.35 billion) in investment.

The initiative forms the latest phase of the city's Developed Districts Program, a wider effort to modernize neighborhoods close to the Grand Mosque while preserving their character. According to Arab News, the announcement was made during a signing ceremony attended by Saleh Al-Rasheed, CEO of the Royal Commission.

Seven Districts, National Partners

The program focuses on seven central sites: South Jurhum, Al-Hajlah, Al-Khalidiyah, three areas within Al-Hindawiyah, and Al-Zuhur. Rather than appointing foreign contractors, the commission awarded the work to alliances of Saudi companies.

The South Jurhum project went to Muad International and Al-Rajhi Real Estate Union. Al-Hajlah was awarded to a group pairing Zood Al-Oula Real Estate with Mohammed Abdulaziz Al-Habib and Sons Holding and Jadwa Investment. Al-Khalidiyah fell to Ladun Investment and Al-Ayuni Investment and Contracting.

Development of Al-Hindawiyah was split. The eastern stretch drew an alliance that includes Dar Al-Majed Real Estate and Rikaz Real Estate, while the southern and western districts were assigned to a consortium featuring Umm Al-Qura for Development and Construction and Makkah Construction and Development. Al-Zuhur, the seventh site, went to Tawafuq and Matoon.

What the Projects Aim to Achieve

The commission said the work centers on the districts most in need of attention. Plans involve upgrading the built environment, improving daily life for residents, and preserving the urban fabric of the neighborhoods surrounding the holy sites.

Officials expect the benefits to reach beyond the seven sites. They anticipate improvements to the wider urban environment, greater efficiency in how the city functions, and new openings for investment. The broader goal, they said, is to keep Makkah's growth sustainable as the population expands while honoring the city's religious weight.

The program aligns with Saudi Vision 2030, which aims to expand the Kingdom's capacity to host worshippers. Saudi Arabia has set a target of welcoming 30 million Umrah pilgrims a year by 2030, placing sustained pressure on Makkah's housing, transport, and services.

Part of a Broader Building Push

The July announcement follows a series of development contracts in Makkah in recent weeks. In late June, Saudi authorities committed billions more to urban projects across the city, and the Royal Commission has moved to expand transport licensing and infrastructure around the Grand Mosque.

Together, these efforts point to a long-term reshaping of the districts that pilgrims pass through on their way to the Haram.

What This Means for Pilgrims

For pilgrims planning Umrah or Hajj in the coming years, large-scale construction near the Grand Mosque is worth factoring into travel plans. A few practical points to keep in mind:

  • Expect construction activity: Redevelopment in central districts may affect road access and walking routes near the Haram. Allow extra time when moving between your hotel and the mosque.
  • Confirm hotel locations carefully: Some older buildings in affected districts may close or change during the works. Book through verified providers and confirm the exact location before you travel.
  • Check for updated transport routes: As new infrastructure comes online, bus and taxi routes may shift. Follow guidance from your tour operator and official Saudi channels.
  • Plan for the long term: Pilgrims returning in future years can expect improved facilities once projects are complete, though the transition period may bring temporary disruption.