Makkah, Saudia Arabia, 8 February 2024: GIB Capital has signed an agreement with FAS Holding Company to establish a new real estate fund, valued at up to SAR 4 billion. The fund is dedicated to developing Barakah Project, a mixed-use landmark development outside of the central area in Makkah, delivering a unique lifestyle destination.

The project will consist of two phases; the first phase will be delivered in 2027 and will see the establishment of the Barakah Mall which is set to become an iconic retail destination. It will be operated and managed by Cenomi Centers, the leading owner, operator, and developer of contemporary lifestyle centres in the Kingdom of Saudi Arabia. The entire project development will be managed by Alpha Development, a prominent real estate development company specialised in the development of mixed–use projects and build-to-suit facilities. For the Barakah project, Alpha is responsible for the end-to-end development, including the management of design activities; arranging of debt and equity funding; permit and license; contractor and project delivery; and selection and engagement of operators of various asset classes.

Boasting a gross area of 80,000 sqm within a larger 250,000 sqm development and located strategically near Masjid Al Haram and accessible to historical sites, the Barakah project aims to redefine the shopping experience in the Kingdom and introduce an exceptional mixed-use development by seamlessly integrating retail, dining, and entertainment elements.

The second phase, encompassing residential and hospitality towers designed to complement the retail component, will create a fully integrated experience for visitors and residents. The residential towers will feature living spaces with advanced amenities and panoramic views, while the hospitality units will deliver world-class service, elegance, and comfort.

Osamah Mohammed Shaker, CEO of GIB Capital, said: “This agreement represents a significant milestone for GIB Capital, highlighting our commitment to diversifying portfolios within the Saudi economic landscape. We are dedicated to providing our clients with distinctive investment opportunities and delivering competitive returns. Makkah, as the destination for over a billion Muslims, holds profound significance, and Vision 2030 sets forth the ambitious goal of hosting 30 million pilgrims. As we forge ahead, we remain steadfast in our dedication to contributing to this vision and harnessing the immense potential of this thriving market.”

Kamel Alqalam, Managing Director, FAS Holding said: “We are thrilled to unveil Barakah mixed-use project in the holy city of Makkah, the launch pad to our new strategic expansion and focus on real estate mixed-use and residential projects. The new strategy aims to consolidate the company’s expertise in Real Estate Development acquired over three decades across the region together with our strong land bank, to provide a holistic living experience which will offer a dynamic and interconnected environment where our clients can live, work, and play, all within a single integrated development.”

Alison Rehill-Erguven, CEO, Cenomi Centers said: "We are honoured to be entrusted with the management of the Barakah Mall, an endeavour that extends beyond conventional retail. Our goal is to create a space where every visit is not just a shopping experience, but a journey filled with memorable moments. From retail to entertainment, the Barakah Mall will stand as a testament to our commitment to excellence and innovation.”

Mr. Hatim Mouminah, CEO and Vice Chairman of the Board of Directors of Alpha said: "By combining our strengths and resources with GIB Capital's strategic guidance and financial support, we aim to revolutionise the real estate sector in Saudi Arabia and contribute significantly to the nation's Vision 2030 objectives. Together, we are committed to launching innovative real estate projects that will not only shape the Kingdom's landscape but also foster community well-being and sustainable development."

Makkah receives significant attention in a comprehensive development strategy that focuses on four pillars: place, guests, residents, and prosperity, as well as governance and financing. This strategy aims to achieve the targets set by Saudi Arabia's Vision 2030.