Jadwa Investment Launches SAR 10B Makkah Real Estate Funds

Jadwa Investment launched two real estate development funds in Makkah with a combined value of up to SAR 10 billion, the firm said in a statement.

The funds target residential and commercial projects in the holy city, which draws millions of pilgrims annually and has seen a surge in hospitality and housing demand. Saudi Arabia's Vision 2030 push to expand Umrah capacity and develop religious tourism infrastructure has made Makkah a focal point for real estate investment.

One fund focuses on residential development, the other on mixed-use commercial projects. Both are structured as closed-end funds with a defined investment period, according to the statement. Jadwa did not disclose the expected timeline for deployment or the specific projects under consideration.

The launch comes as Saudi Arabia's real estate sector benefits from government-backed mortgage programs and foreign investment reforms. Makkah, in particular, has attracted developers targeting premium housing and hotel projects near the Grand Mosque. The SAR 10 billion commitment from Jadwa, one of the kingdom's largest asset managers, signals confidence in the city's long-term demand profile.

Jadwa Investment manages over SAR 60 billion in assets across public and private markets. The firm has previously launched real estate funds focused on Riyadh and Jeddah. The Makkah funds mark its largest single commitment to the city's development pipeline.

Saudi Arabia's real estate sector grew 4.5% in 2024, driven by residential sales and hospitality construction, according to government data. The kingdom aims to attract 150 million annual visitors by 2030, up from roughly 109 million in 2023, a target that requires substantial new hotel and housing stock in Makkah and Medina.