Yesterday, the Royal Commission for Makkah City and Holy Sites announced the awarding of six targeted urban development sites in the holy capital, with a total area exceeding 2.7 million square meters and a total offering value of 13.3 billion riyals.

The awarded sites include South Jarham, Al-Khalidiyah, Al-Hajlah, East Hindawiyah, South Hindawiyah, and West Hindawiyah, to a number of qualified investment and development alliances.

Real estate expert Khaled Al-Mubayyed said: "I believe we are witnessing a significant transformation in Makkah, from an economy heavily reliant on the seasonality of Hajj and Umrah to a sustainable urban economy operating year-round. The awarding of six development sites covering over 2.7 million square meters and worth 13.3 billion riyals indicates that Makkah is moving towards developing integrated neighborhoods, not just limited urban improvements."

He added: "These projects will increase the economic value of the land, but at the same time they will redistribute investment appeal beyond the central area, especially in targeted neighborhoods like Jarham, Al-Khalidiyah, Al-Hajlah, and Hindawiyah. This is important because it creates new growth centers and eases pressure on the central area."

Al-Mubayyed continued: "In terms of liquidity, injecting investments of this scale will stimulate the Makkah real estate market in development, financing, contracting, operations, and hospitality, and will boost investor confidence that Makkah is entering a phase of broader urban and economic reshaping."

Regarding the entry of large development alliances, Al-Mubayyed said this does not mean the disappearance of individual developers, but rather that the next phase requires entities capable of comprehensive development, risk management, infrastructure financing, and creating integrated projects instead of fragmented development of small plots.

He added: "I expect these projects to help narrow the developmental gap between the central area and other neighborhoods, provided they are linked to improvements in services, infrastructure, accessibility, and quality of life for residents and visitors."