The Royal Commission for Makkah City and Holy Sites has awarded six major development sites under its Developed Districts Program, an investment package worth an estimated SAR 13.3 billion (about 3.54 billion US dollars). According to the commission, the projects cover more than two million square meters across the holy city and are designed to upgrade ageing neighbourhoods near the Grand Mosque.
The announcement, made in early June 2026, marks one of the largest single rounds of urban redevelopment awards in Makkah in recent years. The commission said the sites will be developed through partnerships with private real estate firms and investment funds, with several structured as regulated real estate investment funds.
What the Developed Districts Program covers
The six awarded sites sit within priority districts that the commission has targeted for renewal. Among the named locations are Al-Hindawiyah West and Al-Hindawiyah South. The commission said the program aims to improve land-use efficiency, upgrade infrastructure and public services, and address long-standing urban challenges in dense areas close to Al-Masjid al-Haram.
The stated goal is to transform informal and under-developed settlements into modern, well-integrated neighbourhoods. The commission framed the work as part of Saudi Vision 2030, which sets ambitious targets for the number of pilgrims the kingdom can host each year.
Two flagship Hindawiyah projects
Two of the awards stand out for their scale. Umm Al Qura for Development and Construction confirmed it had received two letters of award to develop the Hindawiya West and Hindawiya South sites, located next to the company's Masar Destination corridor. The combined development covers roughly 1.15 million square meters and carries an estimated value of about SAR 6 billion (1.6 billion US dollars).
Umm Al Qura will lead the consortium and act as development manager. Makkah Construction and Development Company will serve as the financial partner, funding compensation payments to existing property owners, while Al Rajhi United Real Estate Company will act as the technical partner. The project will be carried out through a real estate investment fund managed by an institution licensed by the Capital Market Authority.
A separate award covers the East Hindawiyah district, where a consortium of First Avenue for Real Estate Development, Dar Al Majed (Al Majdiah) and Rekaz Real Estate Company will build a mixed-use scheme valued at around SAR 2 billion. That project spans about 235,000 square meters and sits roughly 1.8 kilometers from the Grand Mosque. It is planned to include residential units, hotels, offices, retail outlets and public spaces, and will also run through an investment fund managed by Jadwa Investment.
Why it matters for pilgrims
For the millions who travel to Makkah for Hajj and Umrah each year, the redevelopment programs point to more accommodation and better infrastructure within walking distance of the Grand Mosque. The commission has repeatedly linked these projects to the kingdom's target of hosting far larger numbers of pilgrims over the coming decade.
New hotel capacity near the Haram could ease pressure on a market where rooms close to the mosque are scarce and expensive during peak seasons. Improved roads, utilities and pedestrian areas are also intended to make movement around the central area safer and more orderly.
The projects are long-term in nature. Construction timelines for large Makkah developments typically run for several years, so pilgrims planning trips in the near future should not expect immediate changes on the ground.
Practical guidance for travellers
Pilgrims booking accommodation for Umrah in the current 1448 AH season should continue to rely on verified listings through the official Nusuk platform, which is now mandatory for booking hotels linked to an Umrah visa. Building works in some districts may affect traffic and access routes, so allow extra time when travelling to and from the Haram.
Those considering longer-term property or investment decisions in Makkah should consult licensed local agents and verify any scheme against official announcements from the Royal Commission, rather than relying on informal promotions. As always, travellers are advised to confirm current visa rules and accommodation requirements before finalising any trip.