- | 12:00 pm
Umm Al Qura launches IPO to fund $26.7 billion MASAR project in Mecca
MASAR will feature hotels, residences, retail, and cultural centers, aiming to enhance Mecca's infrastructure.
Umm, Al Qura for Development and Construction announced on Sunday that it would launch an initial public offering (IPO) on the Saudi Exchange’s main market to finance its ambitious $26.7 billion MASAR Destination project in Mecca.
The developer plans to offer 130.8 million new shares, representing 9.09% of its post-increase capital. The proceeds from the IPO will be used for infrastructure development, land settlements, and further expansion of the vast project, located in one of Islam’s holiest cities.
MASAR, a 1.2 million square meter development, will include hotels, residential units, retail spaces, and cultural centers, with the goal of modernizing Mecca’s infrastructure. In December 2024, the project received conditional approval from the Saudi Exchange and the Capital Market Authority (CMA). Backed by prominent Saudi entities, including the Public Investment Fund (PIF) and the General Organization for Social Insurance (GOSI), Umm Al Qura was established in 2012.
The Capital Market Authority (CMA) has stipulated that foreign ownership in the company’s listed shares cannot exceed 49%. However, the regulator has previously permitted foreign investment in Real Estate Investment Trusts (REITs) focused on Mecca and Medina. This IPO comes as Saudi Arabia implements significant investment reforms and relaxes foreign ownership rules to attract international capital, in alignment with its Vision 2030 diversification strategy.
The kingdom aims to attract 30 million pilgrims annually by the decade’s end, earning approximately $12 billion from pilgrimages in 2019.
Featured Videos
Today's Top Stories:
More Top Stories:
FROM OUR PARTNERS
