As the Hajj draws to a close, Saudi Arabia is pumping billions of dollars into the holy city of Mecca in a bid for tourism to play a bigger role in its economy. High-end hotels, apartments, retailers and restaurants are planned near the Grand Mosque.
The Hajj pilgrimage has officially started in Saudi Arabia. Some 2 million pilgrims are making their way from the holy city of Mecca on Monday to a tent camp on its outskirts for a day and night of prayer after circling the Kaaba, Islam’s holiest site.
“Saudi Arabia never has to worry about foreign competition, as there is only one Mecca and only one Medina,” said Bahrain-based economist Omar Al-Ubaydli. “This is a great foundation for building a successful income source. Enabling people to shop, visit museums, attend conferences while performing Umrah is a great strategy for income growth.”
Behind the bright billboards along the highway are a jumble of cranes, craters and piles of grey rubble in the ongoing construction of the $26 billion Masar Makkah development project. The plan is to lay down a 3.5-kilometer-long swath of hotels, residential buildings, parks and malls leading up to the Grand Mosque area. Local media report that the company leading the project demolished thousands of homes and paid out more than $2.
Twenty-seven projects, each valued at $25 million or more, are underway in Mecca, according to the Global Data Construction Intelligence Centre. Of these, 13 are in the hospitality, retail and residential sectors, and the rest in transport.
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