PIF’s move to offload a portion of its holding comes as the broader project behind Masar — a vast mixed-use development in Makkah — continues to draw institutional interest. Masar, funded and overseen by Umm Al Qura, is envisaged to become a major urban destination near the holy city’s Haram boundary, offering hotels, serviced apartments, residential units, retail, healthcare and commercial space. The master-plan spans several square kilometres and aims to support that region’s infrastructure and capacity goals under Saudi Arabia’s development agenda.
The sale was structured under the regulations of the Tadawul Group, which clarified that the transactions would be executed as negotiated deals during a pre-market opening auction session set for 26 November. The offering was managed by joint global coordinators Citigroup Saudi Arabia, SNB Capital and EFG Hermes KSA, who collectively served as bookrunners for the sale. Market watchers said the oversubscribed offering underlines confidence in high-value Saudi real estate assets among institutional investors.
Despite the partial sale, PIF will remain a substantial owner in Umm Al Qura, signalling confidence in the long-term viability and strategic value of Masar rather than a full exit from the project. Analysts noted that the disposal allows the fund to recycle capital while still retaining significant exposure to a project aligned with the country’s ambitious urban expansion and tourism-capacity targets.
Masar’s earlier public offering earlier this year had already marked a milestone: the IPO raised significant capital and drew attention to the Kingdom’s push to attract diverse investment into its major non-oil initiatives. Umm Al Qura had emphasised that Masar aims to deliver a landmark urban destination with phased revenue streams, diversified asset classes and a low-risk business model tailored to the unique dynamics of the holy city.
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