20/10/2026 02:09 AST
Indonesia has become the first foreign country to own property in Thakher Makkah, after the state's wealth fund Danantara received ownership certificates for a SR2 billion ($531.4 million) acquisition.
According to a press release, Thakher Development, the master developer of Thakher Makkah, handed over the paperwork, completing the purchase of the 1,461-room Novotel Thakher Makkah and 14 adjoining development plots.
The sale follows the introduction of the Law of Real Estate Ownership by Non-Saudis, which took effect in January, and also supports the Kingdom's goal of hosting 30 million Umrah pilgrims annually by 2030, up from 8.5 million in 2019.
"This is a historic moment for Thakher Makkah. Welcoming the first foreign state to own property in our destination reflects international confidence in Thakher Makkah," said Faisal Shaker, CEO of Thakher Development.
"As Thakher Development, we design investment opportunities for partnerships of this scale, and we are proud to have taken this transaction from signature to title in ten months," he added.
Ending seasonal rentals
For Indonesia, the deal marks a shift from relying on seasonal accommodation to securing dedicated lodging for its pilgrims.
The country has the world's largest Hajj quota, with 203,320 regular places in 2026, while about 1.5 million Indonesians perform Umrah each year. The hotel will accommodate around 4,400 pilgrims during each Hajj season.
Danantara CEO Rosan Roeslani called the deal "a concrete step in building a long-term hospitality investment platform" in the Kingdom, adding: "More broadly, this marks the beginning of an extended economic partnership between Indonesia and the Kingdom of Saudi Arabia, and we will continue to deepen our bilateral cooperation by exploring opportunities in Madinah and across other sectors that create shared value for both nations."
Next steps
Accor will keep operating the hotel, which has three 19-storey towers. Danantara plans to develop the 14 plots, totalling 44,088 sq. metres, into hotels with about 6,000 additional rooms and a mall with more than 90 retail outlets, an investment of more than SR2 billion.
Thakher Makkah spans 320,000 sq. metres, 1.2 km north of the Grand Mosque.
Arab News
Please wait...
