SAUDI ARABIA —Makkah Construction and Development Company has signed a 25-year land lease agreement with Al Balad Al Ameen for Development and Urban Regeneration to undertake the redevelopment and investment of Al Misfalah Park in Makkah Al Mukarramah, Saudi Arabia. Signed on 10 November 2026, the arrangement covers approximately 109,000 square metres of land and carries an annual rental value of approximately SAR 25.8 million. The rental amount is subject to a 10% increase after every five contractual years.
The proposed development will reposition the existing park as a mixed-use public destination incorporating landscaped green areas alongside commercial and recreational facilities. The initiative is intended to accommodate the requirements of local residents, domestic and international visitors, and pilgrims travelling to Makkah. The lease will commence from the date the site is handed over, with a total grace period of 30 months allocated across the first five years of the contractual term to facilitate the initial development activities.
The project represents a long-term urban land development arrangement within one of Saudi Arabia's most significant religious and visitor destinations. Integrating commercial activities with public recreational spaces could expand the range of services available in the surrounding urban environment while supporting the broader development of Makkah's visitor infrastructure. The scale and duration of the agreement also establish a framework for phased capital deployment and long-term operation of the redeveloped property.
Makkah Construction and Development Company operates in the real estate and urban development sector, with activities linked to property investment and development in Makkah. Al Balad Al Ameen for Development and Urban Regeneration is the counterparty to the agreement and is involved in urban development and regeneration initiatives. Their arrangement brings together a property developer and an urban development entity for the long-term utilization of a strategically located public space.
From a financial perspective, the lease will initially create rental obligations for Makkah Construction and Development, while the anticipated positive contribution is expected to emerge after construction and the commencement of commercial operations. The company expects the completed development to establish an additional recurring income stream, supporting revenue diversification and expansion of its investment activities. Investors and real estate market participants will therefore monitor development expenditure, the site handover schedule, operational commencement and the project's ability to generate sufficient commercial returns over the extended lease period.
