Makkah is likely to attract up to $26.6bn (SAR100bn) in investments as government spending increases to develop and upgrade infrastructure in Saudi Arabia's holy city in upcoming years.
Projects such as the expansion of Grand Mosque, which includes the first ring road, tunnels and buildings, are expected to spur economic boom in Makkah, experts have stated.
For every $266.6m (SAR1bn) spent by the government, the private sector will spend between $879.8m (SAR3.3bn) to $1.3bn (SAR5bn), Maher bin Saleh Jamal, chairman of the Makkah Chamber of Commerce and Industry said.
"What we are witnessing today is a huge developmental revolution in Makkah, which takes into account the state's five-year development plans and raises the level of services to pilgrims and visitors," Al Jamal said, after King Salman launched five projects as part of the third phase of Grand Mosque's extension.
He said the expansion of the Grand Mosque will help accommodate 1.85 million people, and will contribute in providing more comfort to pilgrims, as well as encourage private sector investment in the holy city, local daily Arab News reported.
State spending on government projects, as well as expenditures on land expropriation and compensation of landowners, are likely to double due to the simultaneous investments by the private sector.
Jamal said the projects launched by the king, and those to be launched in the future are not projects that look for direct economic returns, but rather aim to serve the pilgrims, visitors, citizens and residents of Makkah.
Construction Week
15 July
