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Umm Al Qura Moves Forward with IPO to Fund SR100 Billion Masar Project in Makkah

Prime Highlights: 

Umm Al Qura for Development and Construction is launching an IPO to raise funds for its SR100 billion ($26.6 billion) Masar project in Makkah. 

The project will include a hospital, mosque, office spaces, and enhanced transport infrastructure. 

Key Background: 

Umm Al Qura for Development and Construction Co. is advancing with its initial public offering (IPO) to support the funding of its SR100 billion ($26.6 billion) Masar Destination project in Makkah. The Saudi Capital Market Authority has approved the company’s application, allowing it to issue 130,786,142 new shares, representing 9.09 percent of its post-capital increase equity. 

Masar, spanning 3.5 kilometers, is a multi-use development aimed at creating a global destination for residents and visitors. The project will feature 41,000 hotel rooms, serviced apartments, and 9,000 residential units. It will also include over 330,000 square meters of retail and commercial space, including a major shopping mall and retail centers, as well as facilities such as a hospital, mosque, office spaces, and transport infrastructure to improve accessibility in Makkah. The funds raised through the IPO will be used for land settlements, infrastructure development, activation of the Masar destination, and project financing, along with other corporate expenses related to sales, marketing, and operations. 

Abdullah Saleh Kamel, Chairman of Umm Al Qura, expressed gratitude for the support of Saudi leadership in advancing Makkah’s development in line with Vision 2030, which seeks to accommodate the increasing number of pilgrims and visitors. He emphasized that the IPO provides a unique investment opportunity in the landmark project. 

CEO Yasser Abuateek highlighted that Umm Al Qura was established in 2012 to enhance Makkah’s urban landscape. The company’s IPO is seen as a testament to its growth and commitment to delivering innovative urban destinations that offer exceptional experiences. Masar’s infrastructure is nearly complete, with 99.77 percent already finalized. The IPO is expected to attract substantial investor interest, reflecting Makkah’s growing significance as a global religious and tourism hub.