Masar sells four plots of land in Mecca for SAR 603.8 million to develop residential and hospitality towers

21 سبتمبر 2026

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وجهة مسار في مكة المكرمة التابعة لشركة أم القرى للتنمية والإعمار — تصور رسمي لوجهة مسار في مكة المكرمة — المصدر/الحقوق: شركة أم القرى للتنمية والإعمار، عبر الموقع الرسمي للاكتتاب. الصورة تعريفية للمشروع ولا توثق توقيع صفقة بيع الأراضي في 20 سبتمبر 2026.

Umm Al Qura for Development and Construction Company, known as “Masar,” announced that it had signed four agreements to sell four plots of land within the Masar destination in Mecca to Al Diyar Al Arabia Real Estate Development Company, for a total value of SAR 603.76 million. The deal supports the company’s strategy to develop the destination and attract new real estate investments.

According to the company’s disclosure published on the Saudi Exchange on Monday, September 21, 2026, the agreements were signed on September 20 and cover land in the third district of the Masar destination, with a total area of 12,157 square meters. The company said the four plots do not overlook the “Boulevard” pedestrian walkway, and that the buyer will bear the taxes and fees associated with the transaction.

Details of the Masar–Al Diyar Al Arabia deal

The deal comprises four plots measuring 2,831, 2,820, 2,570 and 3,936 square meters. Their values were approximately SAR 126.67 million, SAR 125.84 million, SAR 114.33 million and SAR 236.92 million, respectively, bringing the total value to SAR 603,757,462, according to official data.

The agreements were signed by Umm Al Qura for Development and Construction Company and Alinma Development II Limited, a special-purpose company for Alinma Makkah Development Fund II, all of whose units are owned by Masar, with Al Diyar Al Arabia Real Estate Development Company.

Three residential towers and a hospitality tower

The significance of the deal extends beyond the sale of the land, as Masar said the buyer intends to develop three residential towers and a hospitality tower on the sold plots. This will add new components to the Masar destination, which aims to create a mixed-use urban environment in one of the most important locations in Mecca.

The deal forms part of a development model based on preparing the destination’s infrastructure and attracting developers and investors to implement residential, hotel, commercial and service projects, thereby broadening the project’s investment base and increasing the diversity of available real estate products.

Expected positive impact on liquidity and results

The company said the total book value of the sold land was approximately SAR 259.5 million, compared with a sale value of around SAR 603.8 million. Masar expects the deal to have a positive impact on liquidity and financial results, with the sale proceeds to be used to finance working capital and existing projects.

The difference between the book value and the sale value reflects the importance of the deal to the company. However, the official disclosure did not provide a final estimate in the published announcement of the accounting net profit resulting from the transaction after accounting for all related items. Therefore, the direct mathematical difference should not be treated as net profit.

Masar destination continues to attract real estate development

The Masar destination is located in Mecca and is being developed by Umm Al Qura for Development and Construction Company, which is listed on Saudi Arabia’s Main Market under the ticker 4325. The latest sale forms part of a series of moves by the company to activate the land and attract developers to the destination, alongside the implementation of projects and infrastructure.

Residential and hospitality projects in Mecca are particularly important amid growing demand linked to residents, visitors, pilgrims and Umrah performers. However, the results of each project remain dependent on execution, demand and market conditions, and this article does not constitute a recommendation to buy or sell any security.