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Saudi sovereign wealth fund sells stake in Mecca developer

Saudi Arabia’s Public Investment Fund (PIF) has completed the sale of a stake in Masar, the company behind a mixed-use real estate development project under construction in Mecca, Saudi Arabia.

A digital illustration of the Masar project in Saudi Arabia A digital illustration of the Masar project in Saudi Arabia (Image By Salman Al-Mazini via Wikimedia Commons)

The Masar Destination project is being developed by the Umm Al Qura for Development and Construction Company (known as Masar).

The PIF sold 3.3% of the company’s share capital to local and international institutional investors, with a total value for the offering of SAR 950 million (US$253 million).

It retains a 16.3% share in Masar’s share capital.

The Masar project is part of Saudi Arabia’s Vision 2030 objective to increase capacity to host pilgrims in Mecca to 30 million people by the year 2030.

Masar, meaning “path” in Arabic, will cover 1.2 million sq m in the centre of Mecca and involves the construction of 24,000 hotel rooms and 13,000 residential units. The project is valued at SAT 100 billion (US$26.6 billion).

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