Experts say Makkah projects will spur an economic boom

 Government spending on development projects in Makkah such as the expansion of the Grand Mosque Project, which includes the first ring road, tunnels and buildings, will lead to an economic boom in the city, say experts.

State spending on government projects, as well as expenditures on land expropriation and compensation of landowners, will double because of the simultaneous spending by the private sector, the experts have been quoted as saying by local media.

The comments came following the inauguration of five projects as part of the third phase of the Grand Mosque extension project by Custodian of the Two Holy Mosques King Salman on Sunday.
“What we are witnessing today is a huge developmental revolution in Makkah, which takes into account the state’s five-year development plans and raises the level of services to pilgrims and visitors,” said Maher bin Saleh Jamal, chairman of the Makkah Chamber of Commerce and Industry.
He said the expansion of the Grand Mosque will help accommodate 1.85 million people, and will contribute in providing more comfort to pilgrims, as well as encourage private sector investment in the holy city.

Jamal said the projects launched by the king,and those to be launched in the future are not projects that look for direct economic returns, but rather aim to serve the pilgrims, visitors, citizens and residents of Makkah.

He expects that Makkah would attract around SR100 billion in investment, adding that for each SR1 billion spent by the state, about SR3.3 billion to SR5 billion will be spent by the private sector in various sectors, particularly real estate which has experienced significant growth in recent years.
Mohammed bin Abdul Samad Al-Qurashi, vice president of the Makkah Chamber of Commerce and Industry, said businessmen must actively participate to create large-scale projects that will help provide greater services in Makkah, rather than merely focus on profits.

Ihab bin Abdullah Mashat, another Makkah chamber official, said the positive effects of the generous support from the Saudi government for development projects include providing appropriate jobs for citizens, increasing the size of capital investment in the holy city, improving the level of services for pilgrims, as well as many other direct and indirect efforts.

Abdullah bin Shaker Al-Ghalib Al-Sharif, secretary-general of the chamber, said: “The projects that have been implemented and those under implementation, such as the the expansion projects and the Haramain High Speed Rail Project, are a clear indication of King Salman’s interest in serving pilgrims and developing the Two Holy Mosques.”