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Saudi Arabia's Public Investment Fund (PIF) plans to launch a new company to develop the Grand Mosque area and provide high-quality services in the hospitality sector, state-owned SPA reported on Monday.
The company, called Al-Haram Al-Makki Visions, will work to boost the capacity of the Grand Mosque to accommodate more Hajj and Umrah visitors. The sovereign wealth fund is set to lay the cornerstone of the project in 2018 and commence operations in 2024.
The first phase of the project will develop a total area of 854,000 meter and 115 buildings with an estimated hotel capacity of 310,000 guests per day.
It will also provide 9,000 residential units with a commercial space of 360,000 square meters.
The new entity is forecast to contribute nearly SAR 8 billion to the Kingdom’s annual gross domestic product and provide over 160,000 jobs by 2030.
Meanwhile, the fund will also set up another company to expand Prophet's Mosque area in Madinah to accept more visitors; estimated to hit 23 million annually by 2030.
It also aims to boost hotel capacity by 240,000 guests in 80,000 rooms daily.
In addition, almost 500 residential units will be also provided.
PIF aims to begin construction works in 2018 and start operations in 2023.
The company would likely contribute SAR 7 billion to the Saudi annual GDP and create 200,000 job opportunities.
Last week, the PIF announced a plan to re-develop “New Downtown Jeddah” project at an estimated cost of SAR 18 billion over ten years, Argaam earlier reported.
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