Umm Al Qura Sells Masar Plot for 139M SAR

Makkah, Saudi Arabia — The real estate firm Umm Al Qura for Development and Construction has sold a plot of land within Masar Destination for 138.98 million SAR. The purchaser is Al Sakan Al-Mithali for Development, a subsidiary of Methak Investment Holding. The deal finalized on October 25, 2026, through Al-Inma Second Development Company Limited, which acts as the special purpose vehicle for the Masar Makkah Development Fund II, of which Umm Al Qura holds all ownership stakes. The deal does not account for taxes or fees that the buyer must pay separately.

The land parcel is located in Zone 3 of Masar Destination, bordering Abdullah Uriaf Road. Measuring 3,217 square meters, the plot is valued at 59.67 million SAR on the company's balance sheet. The sale price is nearly three times the book value, indicating a significant book gain for the company. The purchased land will be developed into a hospitality tower, aligning with the Masar Destination's master plan that emphasizes mixed-use and tourism.

Proceeds from the transaction will be used to bolster working capital and ongoing projects across the company's portfolio.

This development provides Umm Al Qura with approximately 139 million SAR in liquidity, a premium over the land's book value that should positively impact the company's financial results in the period following the transaction. By monetizing land assets, Umm Al Qura reduces balance sheet risk and funds development without taking on additional debt.

There are no related-party concerns, as Al Sakan Al-Mithali has no disclosed connection to Umm Al Qura's ownership structure. The sale of Masar Destination land signals that the project is attracting reputable third-party developers, demonstrating that the area is gaining credibility among private capital investors.

From a financial perspective, the book gain of roughly 80 million SAR (before taxes and fees) boosts Umm Al Qura's earnings profile in the period the sale is recognized. This material gain indicates strong underlying asset quality for a development-stage company. By using the sale proceeds to fund working capital and active projects, Umm Al Qura demonstrates disciplined capital allocation, preserving shareholder value through internal cash generation instead of external borrowing or equity issuance.

The transaction, executed through a special purpose vehicle, reflects the company's growing maturity in governance and alignment with industry best practices.