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A consortium led by Umm Al Qura for Development and Construction Company has signed framework agreements with the Royal Commission for Makkah City and Holy Sites (RCMC) for the redevelopment of Hindawiya West and Hindawiya South sites under the Makkah Informal Settlements Development Programme.
The consortium, which includes Makkah Construction and Development Company (MCDC) and Al Rajhi United Real Estate Company had received letters of award for the two projects from the Royal Commission in May 2026.
The Hindawiya West and Hindawiya South sites, spanning 841,292 square metres (sqm) and 308,304 sqm respectively, are located adjacent to Umm Al Qura's flagship Masar Destination.
In a stock exchange statement filed on Thursday, Umm Al Qura said the agreements included principal terms and conditions for the development of the project; fund structuring procedures and the mechanism for the appointment of the fund manager, and the appointment of Umm Al Qura as the developer and the exclusive marketing agent for the project.
The company did not disclose the value of the proposed investment fund. However, similar framework agreements signed on Thursday by consortiums led by Ladun Investment Company and First Avenue for Real Estate Development Company provided for the establishment of dedicated real estate investment funds to finance the redevelopment of the Khalidiyah and East Hindawiyah informal settlements, respectively.
Ladun said in its statement that a $1.07 billion real estate investment fund will be established for the Khalidiyah project, although it did not identify the fund manager.
Separately, Jadwa Investment, which was appointed fund manager for the First Avenue-led consortium, said it had launched two real estate development funds with a combined value of up to $2.67 billion for the East Hindawiyah and Zood-led Al Hijla redevelopment projects.
Meanwhile, the five-year redevelopment scheme for Hindawiya West and Hindawiya South aims to transform the two sites, spanning a combined area of 1.15 million sqm, into a mixed-use urban project that will serve as an extension to Masar Destination.
The project has an estimated initial cost of 6 billion Saudi riyals ($1.6 billion). Existing property owners have the option to participate in the development in exchange for in-kind units or otherwise receive cash compensation.
Under the proposed structure, Umm Al Qura will act as development manager and contribute cash and in-kind assets representing the development premium, development management fees and naming rights, with the final terms to be defined in definitive agreements.
MCDC, as the financial partner, will fund compensation payments to existing property owners, while Al Rajhi United Real Estate Company, as the technical partner, will undertake execution and construction works in exchange for units in the investment fund, with the final allocation to be agreed in the definitive documentation.
(Writing by SA Kader; Editing by Anoop Menon)
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