Saudi Crown Prince launches massive Mecca expansion project

Saudi Crown Prince Mohammed bin Salman launched a gigantic development alongside the Grand Mosque in Mecca that aims to almost double the holy city’s capacity to host Muslim pilgrims coming from around the world.

The new plan, introduced by the Saudi leader on Wednesday as the King Salman Gate project, is part of a broader push to modernize Mecca’s municipal services and accommodate 30 million visitors annually by 2030, up from about 18 million last year.

The development will span nearly a quarter the size of Manhattan, covering 12 million square meters of space (130 million square feet). Managed by RUA AlHaram AlMakki Co., a subsidiary of Saudi Arabia’s Public Investment Fund, the project will include residential towers, hotels and retail space in addition to worship areas. 

The real estate surrounding Islam’s holiest sites in Mecca and Medina has become a magnet for hotel chains, developers and apartment owners, drawn by the guaranteed demand that comes from the religious obligation of Hajj. High-end lodging and property rentals in the surrounding districts have produced strong returns, encouraging more private and institutional participation.

Saudi authorities are also updating regulations to open parts of Mecca and Medina to additional foreign capital. While special restrictions will remain for property ownership in the holy cities, broader reforms in Riyadh and Jeddah are designed to attract outside investors and integrate the religious tourism sector into the kingdom’s diversification plans.