Umm Al Qura Signs Framework Deals for Two Hindawiyah Projects

Umm Al Qura for Development and Construction signed framework agreements with Masar Destination, Makkah Construction and Al Rajhi Real Estate Union to develop the Western Hindawiyah and Southern Hindawiyah projects, the company said in a filing.

The agreements cover the planning and execution phases for both sites. No financial terms were disclosed.

Western Hindawiyah and Southern Hindawiyah are undeveloped areas on the outskirts of Mecca. The projects aim to add residential and commercial capacity near the holy city, where demand for real estate has climbed steadily as Saudi Arabia expands pilgrimage infrastructure under Vision 2030.

Masar Destination is a real estate developer focused on large-scale master-planned communities. Makkah Construction operates across construction and property management in the western region. Al Rajhi Real Estate Union, part of the Al Rajhi group, brings financing and development experience from previous Mecca-area projects.

The three partners will split responsibilities by their respective specialties, the filing said. Umm Al Qura did not specify a timeline for construction start or completion.

Shares of Umm Al Qura closed flat on the Saudi Exchange on the day of the announcement. The stock is up roughly 12% year to date.

Umm Al Qura is the lead developer for several Mecca expansion zones, including the larger Masar development. The company has been parceling out sub-projects to specialist firms as it works through a multi-year pipeline of residential and hospitality builds.