PIF starts new infrastructure development in Makkah, Madinah

The KSA-based Public Investment Fund (PIF), one of the largest sovereign wealth funds in the world, has announced the establishment of two companies, Rou'a Al Madinah and Rou'a Al Haram. The moves are in line with KSA's Vision 2030, which aims to provide an opportunity for the largest possible number of Muslims to perform Hajj and umrah, and to enrich their experience through the development of the two major mosques in Islam, Al-Masjid al-Haram (the Sacred Mosque) in Makkah and Al-Masjid an-Nabawi (the Prophet's Mosque) in Madinah respectively.

Source: PIF. Location of development.

Rou'a Al Haram will act as a catalyst for developing the areas around the holy sites and raising the quality of services in the local hospitality sector in response to an anticipated 30 million visitors to Makkah by 2030.
The first phase of the company's projects will cover an area of 854,000 sq m, delivering 115 buildings and 70,000 new hotel rooms that will enable the site to receive 310,000 visitors per day. In addition, the first phase will see the development of around 9,000 residential units, 360,000 sq m of commercial space and prayer areas designated for more than 400,000 worshippers. The project will take place 1,430m from the Ka'abah.

Initial preparation works are currently underway, with construction due to start in 2018. The first phase of the project is anticipated to launch in 2024.

Rou'a Al Haram projects will create around 160,000 job opportunities by 2030, with an estimated annual contribution to GDP of SAR8 billion.

Rou'a Al Madinah will deliver projects designed to increase capacity for pilgrims and visitors to Al-Masjid an-Nabawi (the Prophet's Mosque), whilst also enriching spiritual and cultural experiences across Madinah.

Preliminary estimates indicate that the total number of annual visitors to Madinah will increase to 23 million by 2030. The company aims to develop a 1.3 million sq m site 1 km away from the east wing of the Prophet's Mosque. The project will see the development of 500 new housing units and 80,000 hotel rooms, increasing hotel capacity to receive 240,000 guests per day, in addition to increasing the number of prayer areas to accommodate 200,000 worshippers per day.

The company's activities will include the development of hotel, commercial and residential projects, as well as the development of cultural centres and museums to enrich Al Madinah's religious, cultural and historical offerings. The company will broaden opportunities for investment and private sector participation through the development of strategic partnerships. The project will also create pedestrian passages as well as update the public transport stations at the end of the pedestrian passages.

Rou'a Al Madinah projects will create around 200,000 job opportunities, with an estimated annual contribution to GDP of SAR7 billion.

Initial preparation works are currently under way, with construction due to start in 2018. The first phase of the project is anticipated to launch in 2023.