Makkah signs SAR5.66 billion transport deals with private partners

Summary

• Saudi authorities signed SAR5.664 billion in agreements for the Wasel Al-Haram transport project in Makkah.
• The scheme covers 19 stations and parking sites across seven corridors, with 3,200 buses.
• Officials expect up to SAR12 billion added to GDP and 3,000 jobs.

The latest

Agreements worth SAR5.664 billion were signed for the Wasel Al-Haram project, a parking, station and corridor network serving Makkah's central area and the Grand Mosque, according to the Saudi Press Agency. The General Transport Center, the executive arm of the Royal Commission for Makkah City and Holy Sites, concluded the deals with private partners at the opening of the sixth Hajj Conference and Exhibition.

Details

• The structure: The agreements cover three investment packages, all built on a public-private partnership model, SPA reported. The first and third packages went to a consortium of Saudi Alqaid Co., Moventis and Waskita, while the second was awarded to the Mawgif consortium. Financing comes entirely from the private sector.
• The infrastructure: According to SPA, the project comprises 19 stations and parking facilities distributed across seven transport corridors, spanning a combined 3.1 million square meters. A fleet of 3,200 buses is attached to the network, intended to move pilgrims and residents to and from the central area.
• Capacity target: The three packages together are expected to serve 205 million passengers a year, SPA said. The stated purpose is to raise transport efficiency and manage the flow of movement into and out of the central area surrounding the Grand Mosque, the most congested zone in the city.
• The economics: The project is estimated to contribute between SAR11 billion and SAR12 billion to gross domestic product, according to SPA. That return is projected across an investment period running from seven to 10 years, a span that covers construction and early operation rather than a single budget year.
• Jobs figure: Between 2,800 and 3,000 positions are expected to be created in the local labor market, SPA reported. The announcement did not break the figure down between construction-phase roles and permanent operating jobs across the stations, parking facilities and bus fleet.
• The venue: The signing took place during the opening ceremony of the sixth Hajj Conference and Exhibition, the annual gathering where Saudi authorities present pilgrimage infrastructure plans. Placing a multibillion-riyal transport award at that event ties it directly to the Hajj and Umrah services agenda.
• The commissioning body: The General Transport Center signed as the executive arm of the Royal Commission for Makkah City and Holy Sites, the authority responsible for development in the holy city. No construction start date or phased delivery timetable was announced for the corridors or stations.

Background

The Royal Commission for Makkah City and Holy Sites oversees development across the holy city and the pilgrimage sites, where millions of visitors converge on a small central area each year. Access to the Grand Mosque is the core congestion problem the transport system is built around.

Between the lines

The financing structure is the signal here: the state is commissioning 3.1 million square meters of transport infrastructure without putting capital in, leaving two private consortia to fund all three packages. The seven-to-10-year investment horizon attached to the SAR11-12 billion GDP estimate indicates returns are tied to operating the 19 stations and 3,200 buses over time, not to the construction award alone.

What's next

Watch for a construction start date and phasing schedule for the seven corridors, the operating terms for the Mawgif and Saudi Alqaid-led consortia, and whether capacity comes online before the next Hajj season.

Source: Saudi Press Agency (SPA)