Saudi's PIF unveils Rou’a Al Madinah, Rou’a Al Haram companies
Construction on both companies' first projects, located around the Prophet's Mosque and the Holy Kaaba, will begin in 2018, it has been confirmed
Saudi Arabia's Public Investment Fund (PIF) has unveiled two development companies focussed on the country's holy sites.
Rou’a Al Madinah will deliver projects aimed at increasing the capacity for pilgrims and visitors to the Prophet’s Mosque.
The company will develop a 130ha project 1,000m away from the Prophet's Mosque's east wing.
Up to 500 housing units and 80,000 hotel rooms will be developed within the project.
A pedestrian passage system will be built around the development, and public transport stations around existing pedestrian passages will also be updated.
Initial works for the project are underway, and construction is expected to start in 2018.
Phase 1 of the development will launch in 2023, with the project estimated to contribute $1.86bn (SAR7bn) to Saudi's gross domestic product (GDP) each year.
Rou'a Al Madinah will also develop hospitality, commercial, residential, and cultural projects "to enrich Al Madinah's religious, cultural, and historical offerings", PIF said in a statement.
Meanwhile, PIF also confirmed that it is preparing to launch Rou'a Al Haram, a development company that will focus on pilgrims and visitors to the Grand Holy Mosque.
"Rou’a Al Haram will act as a catalyst for developing the areas around the holy sites and raising the quality of services in the local hospitality sector," PIF announced in a statement.
Phase 1 of the company's projects will span an area of 854,000m2 and deliver 115 buildings upon its completion in 2024.
Up to 70,000 hotel rooms will be developed, allowing the site to receive 310,000 visitors per day.
Phase 1 will also include the development of 9,000 residential units, 360,000m2 of commercial space, and prayer areas designated for more than 400,000 worshipers.
The project will be located 1,430m away from the Holy Kaaba, PIF revealed.
Construction for the project will begin in 2018, and initial preparation works are already underway.
The kingdom's PIF is rapidly branching out to implement development projects aimed at supporting the country's Vision 2030 aims.
This September, PIF announced it is developing a company with $2.7bn (SAR10bn) in initial capital to act as the kingdom's entertainment investment arm.
Included within the company's plans is an entertainment complex that will be launched by 2019.
The firm "will play an active investment role in various areas of the entertainment sector, and seek to attract strategic partnerships" to develop the kingdom's entertainment ecosystem.
In addition, the firm will also expand the scope and variety of entertainment offerings in the country, as well as provide incentives and develop local capabilities within the entertainment sector.
According to state news agency, SPA, the company will also seek to "localise the large amount of spending on entertainment outside the kingdom, in addition to promoting the entertainment sector's role in diversifying revenue streams".
The firm's formation is "consistent with the ambitions" within Saudi's Vision 2030 programme, SPA's report added.