https://arab.news/9jzf5
RIYADH: Saudi holy city Makkah is set to see a boost in its commercial infrastructure with Alandalus Property Co. commencing construction on an SR831 million ($222 million) project.
In a statement to Tadawul, the Saudi-based real estate firm announced the start of work on a new commercial center in the Makkah Al-Mukarramah region, spanning over 50,650 sq. m.
The center is designed to include 350 rental units, such as showrooms, retail spaces, hypermarkets, entertainment areas, and dining options. It will also feature parking facilities for 1,800 vehicles.
Alandalus’ move underscores its commitment to enhancing Makkah’s commercial capabilities. This project follows recent expansions by UAE-based Lulu Group, which launched two new projects in Makkah and Madinah earlier this year.
“According to the developer’s report, the optimal final engineering design for the project was chosen from a group of designs prepared by the most skilled engineering offices in the Kingdom,” said Alandalus in the Tadawul statement.
It added that construction is underway with all necessary municipal permits secured, and the center is expected to be completed in the first quarter of 2027.
The project is being developed by Masat Property Co., a joint venture between Alandalus and Buroj International, with Hamat Holding Co., in which Alandalus holds a 25 percent stake, overseeing construction.
Funding for the project will be primarily sourced from bank loans, with supplementary contributions from the partners’ own resources.
The ongoing development projects are set to significantly enhance infrastructure in Makkah and Madinah, supporting their transformation into leading hubs for business and tourism.
In December 2022, the Makkah Chamber of Commerce, Madinah Chamber of Commerce, and the Islamic Chamber of Commerce, Industry, and Agriculture signed the Manafea agreement, aimed at transforming these holy cities into pivotal financial and business hubs in the Islamic world.
In a separate update, Alandalus reported a 67 percent decline in net profit for the first quarter of 2024, falling to SR4.7 million compared to the same period last year.
The drop was attributed to higher financing costs and increased expenses in the hospitality and office sectors.
It added that consolidated revenue also decreased by 2.70 percent year-on-year to SR53 million, driven by a 6 percent decline in the retail and operations segment.