Jabal Omar to close Umm Al Qura merger deal in 2018

Jabal Omar Development Co. expects to finalize its merger deal with Umm Al Qura Development and Construction in 2018, Reuters reported, citing a senior company executive.

The deal is key to strengthening Jabal Omar’s presence in Makkah’s real estate market beyond its flagship project within walking distance of the Grand Mosque to help tap growth in religious tourism.

“A key objective of this deal is basically to add value to Makkah’s real estate market,” Faisal Shaker, chief investment and development officer was quoted as saying.

“The size of King Abdulaziz road (which Umm Al Qura Co. is developing) is over 6 million square meters of built-up area. We aim to close the merger with Umm Al Qura in 2018,” he added.

Jabal Omar signed in September 2017 a nonbinding six-month memorandum of understanding (MoU) with Umm Al Qura on a potential merger, Argaam previously reported.

In November, Jabal Omar hired Goldman Sachs Saudi Arabia as financial advisor for its planned merger.