Abdullah to Launch SR30 Billion Makkah Development Projects

JEDDAH, 2 November 2004 — Crown Prince Abdullah will launch this Sunday a number of projects worth SR30 billion in Makkah, including expansion of the Haram Mosque’s courtyard, development of Ajyad Hospital and construction of new residential towers in Jabal Omar and Shamiya.

Prince Abdullah will also inspect the 50-year development plan for Makkah prepared by the Makkah Development Authority and lay the foundation stone for the SR12 billion Jabal Omar project.

He will launch new residential and commercial projects in Jabal Khandama and Jabal Kaaba. Work has already been started on some of these projects while the remaining will be carried out within a timeframe, Al-Riyadh Arabic daily said quoting informed sources.

The new projects come as part of the government’s efforts to enhance facilities for the welfare and security of millions of pilgrims who come for Haj and Umrah from all over the world.

The projects are aimed at developing disorganized areas in the central region of the holy city after removing old and dilapidated buildings. They will create more prayer space and accommodation facilities for pilgrims and worshippers and provide secure transport systems.

Analysts said the new projects would attract more than SR40 billion in investments. Real estate sources calculated highest prices of land in the area between SR175,000 and SR250,000 per square meter. The total area to be developed is estimated at 587,250 square meters, with 90 percent being old buildings.

The projects include expansion of the mosque’s northern courtyard by 1.2 million square meters. Six designs have been prepared by international companies for the expansion, which is to cover the area between the mosque and the second ring road to the north, Masjidul Haram Street to the east and Jabal Al-Kaaba Street to the west.

The Jabal Omar real estate project is expected to change the face of Makkah. Work on the project began in August as utility services to 580 buildings in the area were cut in preparation to demolish them and erect new residential towers designed to accommodate 100,000 people.

The Jabal Omar project is one of the largest schemes aimed at developing areas surrounding the Holy Haram. Spread on an area of 230,000 square meters, the project includes five-star hotels, commercial centers, and prayer facilities for 200,000 worshippers.

The project will have 4,500 shops and 3,000 showrooms, a central transport station and parking facility for 12,000 vehicles.

“It will create a model residential and commercial center with new roads, pathways, tunnels, escalators, and other facilities,” said Abdul Rahman Faqeeh, chairman of Makkah Construction Company.

Faqeeh said the project would provide some 25,000 jobs for Saudis. Jabal Omar offers residential facilities for 100,000 people, air-conditioned prayer facilities for 100,000 and open prayer space for 120,000, he added.

Efforts are under way to establish a joint stock firm named Jabal Omar Development Company to implement the project. The company will have a capital of SR3.5 billion including SR1.1 billion as shares of real estate owners in the area. Part of its shares worth SR850 million will be floated for public subscription. The value of real estate to be acquired for the project is estimated at SR4.3 billion. Building of infrastructure projects will cost SR1.2 billion and hotels and residential towers SR4.5 billion.

Referring to construction of a new road parallel to the road linking the Jeddah-Makkah Expressway with Haram, Faqeeh said it would start from the end of the first ring road behind the Makkah Construction Company’s residential-cum-commercial complex, pass through Jabal Omar to reach the road parallel to Um Al-Qura Road to join the expressway.

The new road will have a 1,000-meter-long tunnel and will pass by Mawarika, Tandbawe, Jabal Ghurab, Rusaifa and Zahareen.

Saudi businessmen are expected to invest some SR3 billion to develop Shamiya area. The Makkah Development Authority will soon present them with a plan to develop the area and establish multistory residential towers there. A company will be formed to implement the project.