Indonesia has become the first foreign state to own property in Saudi Arabia’s holy city of Mecca, after sovereign wealth fund Danantara Indonesia received ownership certificates for a 2 billion-riyal ($531.4 million) acquisition.
What happened: The real estate assets were acquired by Danantara Indonesia, through its investment arm, Danantara Investment Management, at Thakher Makkah, a major urban development about 1.2 kilometers north of the Grand Mosque, or Masjid al-Haram.
Thakher Development, the project’s master developer, handed over the ownership documents, completing the acquisition of the 1,461-room Novotel Thakher Makkah Hotel and 14 adjoining development plots, according to a company press release.
“This is a historic moment for Thakher Makkah. Welcoming the first foreign state to own property in our destination reflects international confidence in Thakher Makkah,” Faisal Shaker, CEO of Thakher Development, said in the statement.