MAKKAH, Saudi Arabia – February 2, 2025 – Umm Al Qura for Development and Construction (“Umm Al Qura”, the “Company” or the “Issuer”), the owner, developer and operator of MASAR Destination (“the Project” or “MASAR”) – one of the largest redevelopment projects in Makkah, today announces its intention to proceed with an initial public offering (the “IPO” or “Offering”) and the listing of its ordinary shares (the “Shares”) on the Saudi Exchange’s Main Market.

 On December 24, 2024G, the Capital Market Authority (the “CMA”) announced its approval of the Company’s application for the registration of its share capital and the offering of 130,786,142 Shares (the "Offer Shares", and each an "Offer Share"), representing 9.09% of the Company’s shares post capital increase, by way of the issuance of 130,786,142 new shares through a capital increase. The Company also received the Saudi Exchange’s conditional approval on December 08, 2024G to list on the Main Market of the Saudi Exchange (“Tadawul”).

 The net proceeds of the Offering will be utilized to fund costs associated with land settlements, infrastructure, activation of the MASAR destination and project financing expenditures; in addition to other general corporate expenditures, such as those relating to sales, marketing, administrative, operating and financing.

 Company overview

 The Company was established in 2012G pursuant to the high order to undertake the development of King Abdulaziz Road in Makkah which originally contained 6 unplanned settlements neighbourhoods; the project site area is known as MASAR Destination. Its current majority shareholders comprise state-owned entities and Saudi private sector including the Public Investment Fund of Saudi Arabia (“PIF”), the General Organization for Social Insurance (“GOSI”) and Dallah Al-Baraka Holding.

• MASAR is one of the largest redevelopment projects in the region, located directly on Makkah's western border. It stretches for more than 3.5km from the 3^rd Ring Road intersection with Prince Mohammed bin Salman bin Abdulaziz Road (formerly known as Umm Alqura Road) to 550 meters away from Al Haram’s King Fahad Gate.
• Makkah has some of the most valuable real estate in the world, with sustained demand for years to come. MASAR has been designed to provide solutions to meet the future needs of Makkah, including infrastructure, mobility, residential and hospitality requirements. 
• MASAR consists of 205 investment plots, with a total area of approximately 641 thousand square meters and a total Gross Floor Area (“GFA”) of 5.7 million square meters, comprising various uses, which the Company seeks to transform into a global multi-use destination to serve the residents and visitors of Makkah.
  • Serviced apartments represent 31.6% of the total GFA, consisting of approximately 18,000 keys and a total GFA of 1.8 million square meters that will be distributed across the length of the project.
  • Hotels represent 31.1% of the total floor area, consisting of approximately 23,000 keys and a total GFA of 1.8 million square meters.
  • Residential units represent 29.3% of the total gross floor area, consisting of 9,000 units to be developed and sold.
  • Retail elements constitute 5.7% of the total GFA, consisting of 330,000 square meters (216,000 square meters of leasable area). This includes a shopping mall on the western side of the project, in addition to two retail centres on the Eastern side. Outlets, stores, and stalls will also be distributed along the pedestrian walkway.
  • MASAR also includes various other elements such as a hospital, a large mosque at the centre of the site, office spaces and other complementary services.
• Upon completion of the project, MASAR Destination is expected to comprise more than 50,000 hospitality and residential units. The total estimated development value is approximately SAR 100 billion.

 The Company in numbers

 61 out of 205 investment plots representing 30% of the project’s total investment plots have been entered into agreements for either land sale, land lease, self-development or developments via partnerships as of 16 January 2025G, with a pipeline of deals under discussion.

• 77% of the key infrastructure work has been completed as of November 2024G.
• The Company has a strong share capital of more than SAR 13.1 billion as of 30 June 2024G , which was raised through several rounds, in addition to bank facilities of more than SAR 14 billion, of which approximately SAR 9.8 billion have been utilized as of 30 June 2024G.
• The Company has over 100 employees, with a Saudization rate exceeding 60%.

 Abdullah Saleh Kamel, Chairman of Umm Al Qura commented on the occasion, “Today marks a significant milestone as we announce our intention to list on the Saudi Exchange’s Main Market. I am deeply grateful to our wise leadership for their efforts in supporting the development of Makkah in alignment with Vision 2030’s goals to accommodate the growing number of pilgrims and visitors. Our IPO offers institutional and retail investors a highly compelling opportunity to invest in the development of MASAR, a landmark project in the Kingdom. As we look to the future, our listing will be a key step in executing our strategy to maximize shareholder value.”

 Yasser Abdulaziz Abu Ateek, CEO of Umm Al Qura said: “Umm Al Qura was established to enhance the urban and investment landscape of Makkah through MASAR. As we prepare to list on the Saudi Exchange, we are ready to begin a new era of accelerated growth, delivering against the ambitions of Vision 2030 to transform the residents and visitor experience in Makkah. Our IPO is a vote of confidence in our track record of growth to date, as well as our commitment to building state of the art urban destinations that create unparalleled experiences.”