Mecca developer to sell 400 apartments after rules eased

Jabal Omar Development Company, seeking to attract overseas buyers, plans to sell hundreds of serviced apartments at its flagship Mecca project after Saudi Arabia eased rules on foreign ownership of property.

As part of the first phase, 400 serviced apartments will be sold this year and the proceeds used to reduce outstanding debt, the developer said in a statement to the Saudi Exchange.

The company will focus on upping the number of serviced apartments in latter stages of the project, leveraging off-plan sales. The move is expected to boost profitability and cash flow by reducing finance costs and minimising required capital investment.

Jabal Omar’s real estate portfolio comprises more than 6,500 hotel rooms and suites.

Last week, the Real Estate General Authority (Rega) said non-Saudi individuals residing in the kingdom can apply directly to buy property through the Saudi Properties portal using their residency number, subject to completion of regulatory procedures.

Property ownership in Mecca and Medina is limited to Saudi companies and Muslim individuals, both within and outside the kingdom.

The Saudi Properties portal, launched in December 2025, is the official channel for foreign real estate ownership applications and for accessing key information on owning property in the kingdom, Rega said.

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In December last year, AGBI reported that Saudi Arabia will grant “lifetime” residency to foreigners who cross a certain threshold when purchasing property.

Jabal Omar’s net profit fell 88 percent year on year to SAR117 million ($31 million) in the first quarter of 2026, as revenue declined 1 percent to SAR739 million.

Outstanding debt stood at SAR9.2 billion by the end of the first quarter, down 2 percent from a year earlier.

The developer’s stock was trading 0.8 percent higher at SAR15.03 on Monday and is up 2 percent so far this year.