Jadwa Investment closes first
real estate investment fund in Makkah

Jadwa Investment, a leading Saudi Arabian investment management and advisory firm, has launched Jadwa Al Azizia Real Estate Investment Fund, the firm’s first real estate fund in Makkah.

The Fund will develop two towers for pilgrim accommodation in the Al Aziza area for a total cost of SR440 m (USD 117m). The project will add an additional 900 hotel rooms to the Holy City’s hospitality market, providing accommodation for Hajj pilgrims from across the Muslim world.

“We see a significant growth opportunity in Makkah’s hospitality sector,” says Tariq Al-Sudairy, managing director and chief executive officer of Jadwa Investment. “In line with our real estate investment strategy, the Fund expands the firm’s real estate portfolio and provides another vehicle for our clients to realize capital appreciation.”

The Saudi government is undertaking several large-scale infrastructure projects in Makkah to serve the growing number of pilgrims and to enhance the quality of life for the Holy City’s citizens.

The Al Masjid Al Haram expansion, the largest expansion in its history, will increase the capacity of the mosque to allow for 5.5 million Hajj pilgrims per year by 2020, compared to 3.1 million in 2010. Other projects include the expansion of Jeddah airport, the Haramain railway, the Masha’er railway, and most recently the Makkah metro project.

The cumulative effect of these mega-projects will be a significant increase in demand for hospitality services in Makkah, which is projected to outstrip supply by 20% in the coming three years. 

“We are expanding our local real estate offering, helping our clients to benefit from continued economic and demographic growth, sustained government investments in infrastructure, and strong demand for real estate in the Kingdom” says Zaheeruddin Khalid, managing director of asset management and chief investment officer at Jadwa Investment. “As a leading manager of Shariah-compliant investment vehicles, Jadwa is well positioned to offer such investment opportunities to our investors and contribute to the hospitality sector in the Holy City of Makkah.”