Partner Content

A partner’s perspective on working with Sharakat

Saudi Arabia’s water scarcity is at the centre of a blossoming infrastructure market, with private partners at its core. Its prosperity is reflected in the success of a number of flagship projects

By SHARAKAT

Religious tourism is on the rise in Saudi Arabia, with more than 7 million pilgrims – an all-time high – flocking to the kingdom in 2012 to perform holy rituals in Mecca and Medina. Demand will continue to rise with the expansion of the Grand Mosque, or Al-Haram, in Mecca and the Prophet’s Mosque, or Masjid al-Nabawi, in Medina. This is expected to increase the number of pilgrims to up to 20 million a year.

Developers are keen to tap into this market, as Mecca lacks adequate supply of hotel rooms to keep pace with the rising influx of pilgrims. The government is also keen for private developers to build more hotels in the holy city as a way to improve health and safety standards by discouraging the centuries-old practice of accommodating pilgrims in people’s homes during the Hajj.

One of the biggest projects being built to help address the growing demand for rooms in Mecca is Jabal al-Kaaba. The developer, Abdul Latif Jameel Real Estate Investment Company (ALJREIC), plans to invest in delivering 7,000 rooms in a cluster of hotels over the next few years. The company says it will spend SR6bn ($1.6bn) on land and SR4bn on hotel construction to complete the scheme.

ALJREIC has launched a new Saudi hospitality brand, Anjum Hotels. Anjum Makkah, the flagship hotel and the first to be developed within the project, has 1,795 rooms and suites and is set to be delivered during the third quarter of 2013.

The high-profile hotel is walking distance from Al-Haram, with an exit and tunnel connected directly to the new King Abdullah Gate, providing guests with direct access to the mosque.

Concept designs are currently being produced for five more hotels that will start construction soon as part of the project.