Indonesia's Danantara buys land in $7 billion Thakher Makkah project
Danantara's investment arm acquired 4.4 hectares and an operating Novotel hotel with 1,461 rooms in Makkah, with a next phase worth $524 million.
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what happened
PT Danantara Investment Management, the investment arm of Indonesia's Danantara, has acquired 4.4 hectares of land plots within the Thakher Makkah development in Saudi Arabia. The deal, valued at SAR26 billion (about $7 billion), includes the takeover of the operating Novotel Thakher Makkah hotel with 1,461 rooms and suites. The information was published by Al Hilal Publishing and Marketing Group, citing the developer Thakher Development.
The next phase will involve Danantara investments of SAR2 billion (about $524 million) and the construction of roughly 6,000 more hotel rooms and over 90 retail outlets. The 320,000 sq m project sits 1 km from the Grand Mosque and mixes residential, retail and hospitality uses, with about 100 plots for development.
why it matters
The deal highlights foreign investor appetite for hospitality and pilgrim-related services in Makkah. For markets, it is mainly a sign of large capital inflows into Saudi real estate and tourism under the country's economic diversification drive, with no direct effect on traded assets.
market impact
Saudi real estate and tourism: foreign capital inflows support development projects
tags
instruments
sources
- ZAWYA: Saudi: Indonesian investment arm buys prime plots in $7bln Thakher Makkah — Reuters, 22 October 2026 at 04:07 UTC
prepared by the newsmetry newsroom with ai assistance from the sources listed below. not investment advice.
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