Riyadh: Saudi Arabia is opening up Makkah’s real estate market to foreign investors as part of a wider strategy to attract capital and diversify its oil-dependent economy, according to a Bloomberg report.
The initiative is part of efforts to draw USD 100 billion in annual foreign direct investment by 2030 under its Vision 2030 reform programme. In 2025, authorities allowed foreign firms to invest in developers operating in Makkah, while overseas Muslims were given a pathway to buy property in the holy city.
The move points to a growing emphasis on sectors capable of delivering steady and long-term returns. Religious tourism is seen as central to this strategy, with millions of Muslims travelling to Makkah each year to perform Haj and Umrah, creating sustained demand for accommodation and services.
Saudi Arabia has also expanded year-round Umrah visas in recent years. This has helped maintain visitor flows beyond the traditional pilgrimage season and boosted confidence among investors in the hospitality and property sectors.
The researcher, MEED, estimates that around USD 60 billion worth of projects are planned or under construction in Makkah, according to Bloomberg. These include residential towers, hotels, shopping centres and large-scale infrastructure aimed at managing rising pilgrim numbers.
Rising demand has driven land prices near the Grand Mosque to some of the highest levels globally. Certain plots have traded at about USD 87,000 per square metre, according to property brokers.
The shift also reflects a broader recalibration of development priorities. While major projects such as NEOM remain part of long-term plans, Saudi Arabia is placing greater emphasis on tourism, finance and technology to generate faster economic returns.
However, the rapid transformation of the holy city has sparked debate among scholars and pilgrims, with concerns over rising costs, overcrowding and the loss of historical neighbourhoods. Some visitors say growing crowds have made religious rituals more challenging, particularly for elderly worshippers.
Saudi authorities say expansion is necessary to improve infrastructure, safety and services as visitor numbers continue to increase. Programmes aimed at supporting pilgrims from less affluent countries are also being strengthened.
“Makkah is on the radar of the who’s who in the investment arena,” Yasser Abu Ateek, chief executive of Umm Al Qura for Development and Construction, told Bloomberg.
Maintaining a balance between commercial development and preserving the spiritual and cultural character of Makkah will be essential as the city evolves into a major global centre for religious tourism and investment.
