Thakher Development, the master developer of Thakher Makkah, has delivered real estate ownership certificates to Indonesia's sovereign wealth fund Danantara Indonesia, making Indonesia one of the first strategic foreign states to own property in Mecca. Thus, Danantara's acquisition of approximately 2 billion Saudi riyals (approximately US$ 533 million), which includes the Novotel Thakher Makkah hotel towers located within the destination and 14 development parcels adjacent to this hotel, has been officially completed.
The infrastructure and investment environment offered by Thakher Makkah, as an integrated and established destination located approximately 1.2 kilometers north of the Masjid al-Haram, played a decisive role in the realization of the transaction. Covering a total area of 320,000 square meters and with a total investment value exceeding SAR 26 billion, Thakher Makkah offers investment-ready lands and operating hotel assets dedicated to hospitality and commercial use to international investors. The hotels and serviced residences in the destination have a capacity of approximately 2,700 rooms.
This important step represents a critical milestone in Saudi Arabia's process of opening Makkah to long-term international investment under the Law on Foreigners' Ownership of Real Estate, which comes into force in January 2026, and directly supports the Kingdom's Vision 2030 goals to increase the capacity and quality of services offered to pilgrims and Umrah visitors.
Thakher Development Chief Executive Officer (CEO) Faisal Shaker said:
"This is a historic moment for Thakher Makkah. Welcoming the first foreign state to own property in our destination reflects both the international trust in Thakher Makkah and the Kingdom's determination to open its doors to long-term partners who share the vision of serving God's guests. At Thakher Development, we envision investment opportunities for partnerships of this scale and are proud to have taken this transaction from signature to title in a short period of ten months. Our next priority is Danantara's investment objectives and our development "To align our strategy and support Danantara in the next phase of the project to enable more Indonesian pilgrims and Umrah visitors to stay within walking distance of the Haram. Today, we have turned this opportunity into a replicable model for foreign investors looking to enter Mecca."
From Indonesia's perspective, this property replaces the decades-old model of accommodation rented on a seasonal basis. Indonesia, the country with the largest pilgrimage quota in the world, was allocated 203,320 regular pilgrimage quotas for 2026; In addition, approximately 1.5 million Indonesians perform Umrah every year. Novotel Thakher Makkah has the capacity to host approximately 4,400 pilgrims and Umrah visitors each Hajj season.
Danantara Indonesia Chief Executive Officer (CEO) Rosan Roeslani made the following assessment:
"This milestone is a concrete step towards building a long-term hospitality investment platform in the Kingdom of Saudi Arabia. Our focus is to manage these assets with a strict investment discipline, while developing an integrated ecosystem that improves the quality of accommodation and services offered to pilgrims and Umrah visitors from Indonesia and around the world. More broadly, this agreement marks the beginning of a long-term economic partnership between Indonesia and the Kingdom of Saudi Arabia. We will explore opportunities in Medina and other sectors that will create shared value for both countries. We will continue to deepen our unity.”
Novotel Thakher Makkah is built on an area of approximately 33,903 square meters, consists of three 19-storey towers and provides service with 1,461 rooms and suites. The facility, which is the largest Novotel branded hotel in the world in terms of number of rooms, will continue to be operated under the same brand within the framework of Accor's current management agreement.
Danantara plans to utilize 14 parcels within Thakher Makkah, with a total size of 44,088 square meters, to develop hotels with a capacity of approximately 6,000 additional rooms and a shopping center that will host more than 90 retail points. In this context, an additional investment exceeding SAR 2 billion is envisaged, thus aiming to further expand the accommodation and commercial capacity of the destination.
