Building on Saudi Arabia’s urban growth ambitions

As Saudi Arabia channels investment into urban growth under Vision 2030, Umm Al Qura for Development and Construction is preparing to expand its role in the country’s evolving city landscape.

The developer behind mixed-use development Masar Destination has unveiled a five-year strategy for 2026 to 2030, marking its shift from developing a single destination to managing multiple urban developments across Mecca, Madinah and Jeddah.

The strategy builds on the company’s 2021 to 2026 roadmap, which centred on Masar Destination in Mecca. During that period, Umm Al Qura completed the project’s core infrastructure, prepared it for operations, listed on Tadawul, the Saudi stock exchange, built institutional capabilities and strengthened its financial position.

Masar Destination began its operational rollout this year. The 1.2 million sq m integrated district is designed to house 158,000 people across zones planned around the desert landscape and underground water systems.

The project has attracted local and international investors, drawing about 40 billion riyals (S$13.6 billion) in development investments so far. Umm Al Qura has also established more than 30 strategic partnerships and put in place environmental, social and governance frameworks.

According to the company, revenue has grown by more than 60 per cent on a compound annual basis, while net profit has increased by more than 45 per cent. It said net profit margins remained above 30 per cent, while operating cash flow exceeded 2 billion riyals in the latest financial year. Its debt-to-equity ratio stood at 47 per cent at the end of the financial year.

A ROADMAP FOR PORTFOLIO EXPANSION

Under its 2026 to 2030 strategy, Umm Al Qura aims to manage an additional development portfolio of more than 50 billion riyals and invest between 3 billion and 5 billion riyals over the period.

The company said its expansion will be selective, focused on high-quality urban destinations that can create sustainable value for communities and investors.

Umm Al Qura plans to fund its investments through reinvested earnings and project-level bank financing. It will also use a flexible operating model, allowing it to act as a master developer, partner or development manager depending on each project’s capital needs and investment criteria.

The company said moving beyond Masar Destination will diversify its portfolio for long-term growth. Focusing on Mecca, Madinah and Jeddah would allow it to apply its experience across connected markets while supporting Saudi Arabia’s broader goals for quality of life and economic growth under Vision 2030.

MASAR GARDENS AS THE NEXT STEP

One outcome of the new strategy is Masar Gardens, Umm Al Qura’s latest project and second urban destination in Mecca. Located next to Masar Destination, the project will span 1.2 million sq m across two sites: Hindawiya West, at about 841,000 sq m, and Hindawiya South, at about 308,000 sq m. It is being developed in partnership with Makkah Construction and Development Company and Rajhi United Real Estate Company.

Over the next five years, Masar Gardens is expected to require an initial infrastructure investment of 6 billion riyals. This will fund more than 140,000 sq m of green spaces, 8km of pedestrian paths and a 17km cycling track.

By placing Masar Gardens within its wider portfolio strategy, Umm Al Qura is positioning the project as part of a broader expansion into future urban destinations.

“The achievements of the past years have provided us with the confidence, expertise and readiness to advance toward managing a fully integrated portfolio of urban destinations,” said Mr Yasser Abdulaziz Abuateek, CEO of Umm Al Qura. “Through this, we aim to create sustainable value for place, community and investors.”

Learn more about Umm Al Qura for Development and Construction’s five-year strategy for 2026 to 2030.