Get all your news in one place.
100’s of premium titles.
One app.
Start reading
Asharq Al-Awsat
Asharq Al-Awsat
Business
Makkah - Saeed al-Abyad

Addas: Work Underway for Regulations Allowing Foreign Investment in Makkah

Work is underway for developing the transportation system in Makkah and the holy sites - CEO of Saudi Arabia’s Royal Commission for Makkah City and Holy Sites Abdulrahman bin Farouk Addas (PHOTO CREDIT: Ghazi Mahdi)

CEO of Saudi Arabia’s Royal Commission for Makkah City and Holy Sites Abdulrahman bin Farouk Addas revealed that the authority has entered the phase of expediting achievements and setting up priorities through speeding up transport sector projects, addressing the situation of slums, providing support to residents, as well as taking care of historical sites, improving public services, and increasing the capacity to receive visitors.

According to Addas, measures carried out by the Commission align with the national plan for transformation, Kingdom Vision 2030.

Speaking to Asharq Al-Awsat, Addas pointed to work that is underway with organizations to allow non-Saudi Muslims to invest in one of Islam’s holiest cities, Makkah.

He noted that the Commission’s current strategy, plans and programs have pillars that are inspired by verses from the Quran.

Addas clarified that the Commission is working to create an environment that enriches the experience of visitors while preserving the city’s social, economic, and cultural diversity. He explained that success in the Commission’s current goal would generate multiple and renewable opportunities for leadership and partnerships.

This will be made possible by Commission’s investment center.

“The center will be a unified destination for forming and supporting partnerships in the projects supervised by the authority by presenting opportunities, clear and transparent regulations and mechanisms,” Addas told Asharq Al-Awsat.

“It reduces the impact of the multiplicity of authorities and references so that there is one supervisory and possible authority that facilitates and stimulates the work of the authority’s partners,” he added.

Transport Sector

Addas referred to the regulation and governance of all that is related to the transport sector in Makkah.

One of the priorities of the Commission’s strategic plan and the “Mobility and Transport Infrastructure” program is to activate an integrated system to manage mobility services.

The system will raise the city’s capacity to receive more pilgrims and help achieve financial and environmental sustainability based on a highly efficient infrastructure that encourages the use of public transportation while maintaining the highest of safety standards.

Therefore, the authority launched “Makkah Transport” to assume the role of supervising all the work and activities of the transport sector in the holy city of Makkah and the holy sites.

The center works to unify the planning of various transportation projects to meet the aspirations of Kingdom Vision 2030 while raising the quality of the sector to secure the finest transportation services for residents and visitors of the holy city.

On February 15, the Commission launched the trial phase of the public transport project under the supervision and management Makkah Transport. Upon completion, the project covers 12 traffic lanes serving the main areas of Makkah.

“The trial operation will start with frequency transportation by the Haramain high-speed railway in the Ar Rusayfah area to the Grand Mosque, back and forth,” revealed Addas.

Slums

“The Commission, since its first day, has worked to mobilize a strategy for a comprehensive solution to slums that covers architecture, social , economic and security aspects,” said Addas, noting that the issue of slums has its own history.

Regarding the social aspect, Addas said that the authority has begun working with responsible authorities to correct the conditions of some residents of these slums, especially those belonging to communities that have sought refuge in the country in earlier times.

The Commission seeks to ensure that the residents of slums are actively integrated into the city.

As for the economic side, Addas confirmed that the authority is working with government agencies to provide job support to citizens living in slums. This support will be given through the Ministry of Human Resources and with coordination with the private sector.

“There is also cooperation, on the security side, with the competent authorities to ensure that the means are provided to prevent the re-emergence of slums in other areas in Makkah, and if they return, their removal will be immediate,” added Addas.

Motivating Investors

Addas said that partnerships with investors at home and abroad are among the priorities of the Commission’s strategy because they affect and intersect with all other sectors that the authority is working to develop, such as the land and real estate sector, the transportation and transport infrastructure sector, and the utilities and environment sector.

According to Addas, the Commission launched the Investment and Partnerships Program, which adopts a unified strategy aimed at attracting and stimulating capital, and building partnerships with the private sector and the non-profit sector to participate in development by creating promising investment opportunities.

“The authority is working to establish an investment center,” noted Addas, adding that the center would serve as the authority’s executive arm and help develop the city’s investment sector.

Moreover, the center would work to stimulate investment through regulation and empowerment. It would also help in concluding agreements and partnerships related to projects supervised by the Commission.

Addas explained that investors need opportunities.

“We have opportunities and we are working on them,” he affirmed, adding that the Commission has launched some opportunities through its Kidana Development Company.

Kidana Development Company

Fully owned by the Commission, Kidana was founded to serve as the executive in laying out a comprehensive project for developing Makkah’s holy sites.

Kidana is aiming for long-term sustainability when reconstructing and renovating the holy sites. It seeks to increase the number of pilgrims that the holy sites can hold, in line with the country’s Vision 2030 reform plan, and allowing more pilgrims to perform Hajj and Umrah each year.

According to Addas, Kidana is supervising several quality projects worth more than one billion riyals ($266 million). Most of these projects will be completed by the start of this year’s Hajj season.

Foreign Investment

Regarding foreign investment, Addas confirmed that foreign investors have always been very interested in Makkah and Madinah. In the past, there were regulations that limited progress in this aspect, but things are starting to change.

Addas pointed out that work is underway to put in place certain regulations that allow non-Saudi Muslim investors to invest in Makkah, especially in the field of real estate.

SMEs

Addas pointed out that one of the most prominent difficulties facing SMEs in Makkah is the seasonal nature of its markets, which is why the Commission is working to reduce the impact of “seasonality” on the work and growth of institutions and Hajj and Umrah services.

Arrangements are being made for opening the way for tourism from all over the world. This will encourage Muslims to take advantage of the new regulations and help create a permanent market in Makkah, even outside the main Hajj seasons.

Having economic movement throughout the year will reduce the impact on SMEs based in Makkah.

Commission Cadres

Addas notes that one of the most pressing challenges facing any newly formed agency, especially those involved in transformation, is finding passionate and ambitious cadres.

“The Commission has embraced 200 innovators so far since its establishment in June 2018,” noted Addas, adding that they are carrying out their duties to the fullest in a work environment that helps the spirit of creativity, innovation, coordination and alignment with the Commission’s partners wherever they are.

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.