Riyadh – Mubasher: Jabal Omar Development Company, a leading real estate developer in the Holy City of Makkah, has unveiled a comprehensive strategic plan to leverage recent regulatory changes allowing non-Saudi ownership within its flagship project.
Following a landmark cabinet decision, the company intends to launch the sale of 400 existing hotel residential units and pivot its development strategy for the project’s final phase to prioritize residential sales. This strategic realignment is designed to broaden the company’s international investor base, reduce debt levels, and optimize capital expenditure through off-plan sales models.
The announcement follows the Saudi Cabinet's approval on 23 June 2026 of the executive regulations governing non-Saudi real estate ownership.
Crucially, the regulations defined specific geographic zones where non-Saudis are permitted to own property, with the Jabal Omar project officially included within these designated areas.
Management anticipates that this regulatory shift will significantly expand the pool of potential investors and owners to include Muslims from across the globe, thereby driving demand for the company’s high-end real estate assets and hospitality products.
To capitalize on this expanded market access, Jabal Omar has outlined a two-pronged strategic initiative. The first phase involves the immediate offering of 400 existing hotel residential units for sale during the current year.
The company has explicitly stated that the proceeds generated from these transactions will be primarily directed toward the reduction of its outstanding loan balances. This move is expected to strengthen the company’s balance sheet and lower its overall financial leverage.
The second pillar of the strategy focuses on the development of the seventh and final phase of the Jabal Omar project. The company plans to adopt a revised development model for this phase, placing a heavier emphasis on increasing the volume of hotel residential units earmarked for sale rather than lease. Furthermore, the company intends to utilize off-plan sales mechanisms for this phase.
By securing buyer commitments during the construction process, the developer aims to minimize its reliance on external financing and reduce the total capital investment required to bring the final stage of the project to completion.
Current operational data highlights the scale of the company’s existing infrastructure. Jabal Omar currently manages a substantial real estate portfolio comprising more than 6,500 hotel rooms and suites. This capacity is projected to reach approximately 7,700 units upon the completion of the remaining sections of the fourth phase, which the company notes is nearing its final stages.
This established footprint is expected to bolster the firm’s competitive position as it transitions toward a sales-driven model under the new ownership framework.
