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Saudi Developer Al Majdiah Wins SAR 2B Makkah Project
Al Majdiah and First Avenue win a SAR 2 billion notice of award for Makkah's eastern Hindawiyah districts. The project shifts the developer from landholder to active builder and tests execution capability.
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Dar Al Majed Real Estate Co. (Al Majdiah) received a notice of award to develop the eastern Hindawiyah districts in Makkah. The project is valued at SAR 2 billion and will be executed jointly with First Avenue Real Estate Development Co.
The award shifts Al Majdiah from a passive landholder to an active developer on a large-scale urban contract. For a company of its size, a SAR 2 billion project represents a material step-change in revenue visibility and execution risk. The partnership structure with First Avenue suggests shared capital commitment, which limits Al Majdiah's balance-sheet exposure but also splits the margin.
Why the Hindawiyah Award Changes the Risk Profile
The simple read: Al Majdiah booked a large contract. The better read: the award signals a shift in Makkah’s urban development strategy. The eastern Hindawiyah districts are not the central haram zone; they are a secondary residential and logistics corridor. Awarding a SAR 2 billion development there implies the municipality is pushing growth outward, which changes the land-value calculus for developers with holdings in that corridor.
Al Majdiah’s existing land bank in the area now has a clearer monetization path. The partnership with First Avenue brings execution capability that Al Majdiah may have lacked on its own. The key risk is execution pace. Large Saudi urban development projects often face permitting delays and contractor bottlenecks. The notice of award is not a signed contract, and the timeline for financial close remains unspecified.