Indonesia’s SWF, Danantara, and Saudi Arabia’s Khomasiah Group are set to develop a real estate JV, boasting the first foreign SWF FDI in the Kingdom following new FDI regulations.
Makkah Development
The development will focus on hotel rooms and a commercial complex in Makkah according to a news report.
The two companies will collaborate to develop nearly 4,700 hotel rooms, along with a commercial complex covering nearly 44,000 square metres (sqm) of land, Ammar Baroum, CEO of Khomasiah Group, told Asharq Business.
Earlier on Monday, Danantara Indonesia, through its investment arm, PT Danantara Investment Management (DIM), completed the acquisition of 4.4 hectares of land plots within Thakher Makkah, following the acquisition and handover of Novotel Thakher Makkah in August 2026.
Acquisition Cost
Baroum said the hotel acquisition cost nearly 1B Saudi riyals ($266M) while the land acquisition cost more than SAR 1B.
Khomasiah Group will spend an additional SAR 4B for development.
The required feasibility studies, approvals, and applicable licensing documentation for the plots will be prepared and provided in accordance with each stage of development, it added.
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