Umm Al-Qura for Development to go public after Makkah roadworks completion: CEO

Umm Al-Qura for Development and Construction Co. is expected to float its shares in an initial public offering (IPO) after completing the King Abdul Aziz Road (KAAR) infrastructure works in Makkah, CNBC Arabia reported, citing Chief Executive Officer Yasser Abuateek.

The company’s incorporation contract stipulated launching an IPO, but the offering ratio has not been determined yet, Abuateek said, adding that it would be better to float the company’s shares after recording proceeds.

“The company will likely finalize 45% of the project’s infrastructure by year-end. The project is expected to be complete by end of 2021 and buildings will be finalized by 2023,” Abuateek explained.

Abuateek expected the project to be fully complete in 15-20 years, as it will provide more than 40,000 hotel rooms and 10,000 residential units.

“This is our only development; it will create an investment climate for foreign as well as local real estate developers,” added Abuateek.

The company said it will operate and manage the whole project, and may contract other companies if necessary, the CEO noted.

In 2015, Saudi-based Nesma & Partners Co. won a $1.75 billion contract to undertake the infrastructure work on KAAR in Makkah. Located in the western part of the city, KAAR spans 3,650 meters from the western entrance of the Grand Mosque.