A new mixed-use mega project in Makkah launched by Saudi Arabia's Crown Prince Mohammed bin Salman is set to create more than 300,000 jobs by 2036.
Adjacent to the Grand Mosque, King Salman Gate will be spread across 12 million square metres, project developer Rua AlHaram AlMakki said in a statement on Wednesday.
The project "marks a major milestone in the development of Makkah and its central area", said the company, which is a subsidiary of the kingdom's sovereign wealth fund, the Public Investment Fund.
The development will have residential, hospitality, commercial and cultural experiences with capacity for around 900,000 indoor and outdoor praying spaces, according to the statement.
It will be connected to public transport networks and will also restore and develop about 19,000 square metres of heritage sites.
The project is in line with PIF’s strategy to boost urban development around the Grand Mosque and "establish Makkah as a global benchmark for real estate development", the company said.
It did not disclose the value of the project or the completion timeline.
Saudi Arabia, the Arab world’s largest economy, is pushing to reform its economy and cut its reliance on the sale of hydrocarbons to generate revenue. Developing non-oil sectors of the economy and further boosting foreign direct investment are central planks of the kingdom's Vision 2030 agenda. The reforms span sectors including property, investment and the management of companies.
This year, the kingdom updated its rules to allow foreigners to buy property in specific zones in Riyadh and Jeddah, with “special requirements” for home ownership in Makkah and Madinah. It is also permitting foreign citizens to invest in publicly listed local companies that own real estate in Makkah and Madinah, as the kingdom seeks to attract international investment.
New land tax rules that came into effect in Saudi Arabia in August are expected to spur the development of property projects. The kingdom increased the annual levy on undeveloped land to as much as 10 per cent of the value of a plot. It also introduced fees of between 5 per cent to 10 per cent on long-term vacant buildings.
The changes apply to plots measuring 5,000 square metres or more, within the approved urban boundaries, Saudi Arabia’s Ministry of Municipalities and Housing said.
As of mid-2025, more than 5,500 undeveloped plots spanning approximately 411 million square metres have been identified under the white land tax regime in Riyadh, Jeddah, Makkah and Dammam, according to DLA Piper.
This marks a substantial increase compared with the initial 2017 roll-out, which covered 1,320 plots totalling about 387 million square metres, the law firm said.
