Indonesia is the first foreign nation to own property inside Thakher Makkah. Its state wealth fund, Danantara, secured ownership certificates for an acquisition valued at SR2 billion, which equals $531.4 million.
A press release detailed that Thakher Development, the master developer of the area, handed over the official paperwork. The transaction finalizes the purchase of the 1,461-room Novotel Thakher Makkah and 14 adjoining development plots.
The sale follows the implementation of the Law of Real Estate Ownership by Non-Saudis, which officially took effect in January.
The agreement also aligns with Saudi Arabia’s strategic goals. The Kingdom aims to host 30 million Umrah pilgrims annually by 2030, rising from 8.5 million in 2019.
Faisal Shaker, the CEO of Thakher Development, spoke about the transaction. "This is a historic moment for Thakher Makkah," he said. Welcoming the first foreign state to own property in the destination reflects strong international confidence, according to Shaker.
He noted that the developer designs investment opportunities for partnerships of this scale. The team took the transaction from signature to title deed in ten months.
For Jakarta, the acquisition represents a shift in strategy. Instead of relying on seasonal accommodation leases, the country has secured dedicated lodging for its pilgrims.
Indonesia holds the world’s largest Hajj quota. The nation has 203,320 regular places allocated for the 2026 season, while roughly 1.5 million Indonesians perform Umrah every year. The newly acquired hotel can accommodate approximately 4,400 pilgrims during each Hajj season.
Danantara CEO Rosan Roeslani described the agreement as a concrete step. He said it builds a long-term hospitality investment platform inside the Kingdom. Roeslani added that the move marks the beginning of an economic partnership between Indonesia and Saudi Arabia. Both nations intend to deepen bilateral cooperation by exploring new opportunities in Madinah and across other sectors.
Accor will continue to manage operations at the hotel, which features three 19-storey towers. Meanwhile, Danantara plans to develop the 14 adjacent plots. Those plots cover a total area of 44,088 square metres and will host new hotels containing about 6,000 additional rooms. The expansion will also feature a shopping mall housing more than 90 retail outlets, representing an investment exceeding SR2 billion.
Thakher Makkah covers a total area of 320,000 square metres. The master development is situated 1.2 kilometres north of the Grand Mosque.
