Podcast Summary: The Rush to Buy Real Estate in Mecca

Podcast: Big Take (Bloomberg and iHeartPodcasts)
Date: February 18, 2026
Host: Sarah Holder
Guest: Zainab Fattah, Reporter (Business & Economics, Middle East)
Episode Theme: Exploring the surge in Mecca's real estate market amid Saudi Arabia’s economic transformation, opening property investments to foreign Muslims, and the broader implications for the city, investors, and the Kingdom's Vision 2030.

Episode Overview

This episode delves into the rapid real estate development and property investment rush in Mecca, fueled by Saudi Arabia’s recent decision to open up the city’s property market to foreign Muslims. The discussion examines the driving forces behind this change, its impact on Mecca’s landscape and residents, the economic ambitions of the Saudi government, and the challenges of balancing modernization with the city’s religious significance.

Key Discussion Points and Insights

The Transformation of Mecca’s Real Estate Market

• Historic Significance and Modern Boom

  • Mecca is an ancient religious center, but recently has become the hottest property market in the Middle East.
    • Zainab Fattah (00:09): “Mecca is a small, hilly town that's been a holy site for Muslims since more than 1,400 years… this ancient city has become one of the world's hottest property markets.”
  • Boasts more hotel rooms than Dubai or Las Vegas; more than half of Saudi Arabia’s new hotel rooms are in Mecca and Medina (00:29).

• Massive Development and Upgrading Projects (00:56)

  • Cranes dot the skyline; huge government-led projects to expand and modernize hotel and housing capacity for increasing numbers of pilgrims.

• Surging Demand and Land Scarcity

  • The city swells from 2.3 million residents to nearly 4 million during Hajj (01:21).
  • Land is scarce, especially near the Grand Mosque, making it among the most expensive real estate globally (06:01).

Policy Shifts: Opening Mecca to Foreign Muslim Investors

• Changing Rules and Motivation

  • Traditionally, foreigners (non-Saudis) were barred from owning Mecca property.
  • In 2026, rules changed—any Muslim (regardless of nationality) can now buy property in Mecca (01:56, 04:17).
  • Restrictions remain for non-Muslims, who cannot even enter the city.

• Pitch to Potential Buyers

  • State-of-the-art accommodations, proximity to the Grand Mosque, investment and personal-use potential (02:29).
  • “You’re going to have all the facilities… so close to the Grand Mosque you can walk… you’ll be able to rent your apartment if you want…” – Zainab Fattah (02:29-02:58)
  • Over $60 billion worth of projects are underway (02:59).

Economic Vision and Diversification: Saudi Arabia’s Goals

• Vision 2030 and Beyond (10:59)

  • Launched in 2016, Vision 2030 aims to reduce reliance on oil, diversify revenue, and boost sectors like tourism, manufacturing, logistics, and technology.
  • Religious tourism already brings in over $12 billion annually (12:06).

• Pressure to Attract Foreign Investment

  • Oil still accounts for 60% of government revenue (11:26). Falling prices have created pressure for further diversification (11:49).
  • The country has opened up the stock market and real estate sectors; international funds flock to Mecca-based development companies (13:05).

Impact, Tensions, and Local Controversies

• Urban Redevelopment and Social Impacts

  • Old neighborhoods are being demolished to make way for planned high-rises and luxury accommodations (05:32).
  • Landowners have made significant profits, but long-term residents may face displacement (06:10).

• Soaring Prices and Affordability Concerns

  • Land trading near the Grand Mosque approaches $87,000 per square meter and luxury hotel rooms run $10,000 a night during Ramadan (06:25).
  • Increasing foreign demand likely to drive prices even higher, making access harder for lower-income pilgrims (07:03).
    • “In Mecca, we’re selling at Monte Carlo prices. It’s that crazy, the demand.” – Broker quoted by Zainab Fattah (06:41)

• Tension with Religious Values

  • Skyscrapers and five-star hotels contrast with the egalitarian mission of the Hajj; risks worsening the rich-poor divide among pilgrims (08:22).

• Public Criticism

  • Some critique the overdevelopment, fearing it transforms Mecca’s sacred and social landscape (09:00).

Safety and Infrastructure

• Managing Crowds and Safety (09:21)

  • Mecca has faced deadly incidents from heat, stampedes, and accidents.
  • The government has implemented quotas by country, prioritized older pilgrims, and restricted children during Hajj (09:42).
  • Key challenge: “How do you actually keep millions of people who descend on a city at the same time safe and ensure there are no fatal accidents?” – Zainab Fattah (09:42)

• Infrastructure Upgrades

  • Major government push for metro lines, hospitals, schools, and other public services to catch up with growing, year-round population (05:09).

International Investment and Geopolitics

• Global Interest in Mecca Holdings

  • Muslim-majority countries like Indonesia and Malaysia, via sovereign wealth funds, are buying properties in Mecca to secure cheaper accommodations for their pilgrims (14:21, 14:33).
    • “We spoke to the CIO of the Sovereign Wealth Fund of Indonesia who told us that they have allocated $1 billion to buy property.” – Zainab Fattah (14:21)
    • “We took that opportunity right away.” – Indonesian Sovereign Wealth Fund CIO (14:33)
  • Promises by national leaders (e.g., Indonesia’s president) to facilitate the Hajj by investing in Mecca.

• Investor Frenzy in Development Firms

  • International asset managers and banks (State Street, HSBC, Schwab, etc.) are buying stakes in Mecca development firms (13:05-14:12).

Toward Broader Tourism

• Saudi Arabia wants to leverage pilgrim traffic to promote other tourist destinations (Red Sea resorts, natural attractions) and encourage longer stays (15:50).
  • “Come for Hajj. Stay an extra week. See the rest of what the country has to offer.” – Sarah Holder (16:31)

Notable Quotes & Memorable Moments

• On Land Value:
  “Brokers say land near the Grand Mosque has recently traded near $87,000 per square meter, among the highest prices globally.” – Sarah Holder (06:25)

• On Prestige:
  “Mecca and Medina mean a lot to Saudi Arabia because the king of Saudi Arabia is often referred to as the custodian of the two holy mosques. And that carries with it a lot of political capital and a lot of prestige and respect in the Islamic world.” – Zainab Fattah (03:54)

• On Social Tensions:
  “Some say it kind of stands in tension with the whole egalitarian mission of going to a holy site wearing white clothing to kind of not show who's poor and who's rich. Building five-star hotels would stand in some tension with that.” – Zainab Fattah (08:22)

• On Investor Interest:
  “We've seen a lot of investors go and buy into the stocks of the developers in anticipation of these rules, basically making these developers’ businesses a lot more thriving...” – Zainab Fattah (13:05)

• On Public Critique:
  “Some have criticized the overdevelopment and they say that this is changing the very landscape of the holy city of Mecca.” – Sarah Holder (09:00)

Timestamps for Important Segments

• 00:09–01:21: Introduction to Mecca’s religious and real estate significance
• 01:56–02:58: Saudi policy change on foreign investment, open to Muslim buyers
• 05:09–06:01: Urban redevelopment, neighborhood demolition
• 06:25–07:03: Land/hotel prices, impact of market opening
• 08:22–09:21: Social tensions, affordability, and Hajj costs
• 09:21–10:21: Safety challenges during pilgrimage seasons
• 10:46–12:06: Saudi Vision 2030; need to diversify beyond oil
• 13:05–14:12: Foreign investor activity in Mecca and developer stocks
• 14:21–15:39: Sovereign wealth funds of Muslim-majority countries investing in Mecca
• 15:50–16:38: Saudi attempts to expand tourism beyond religious sites

Summary Flow and Takeaways

This episode offers a deep dive into Mecca’s unprecedented property boom, spurred by Saudi reforms to court foreign investment and diversify from oil. The hosts vividly capture the economic opportunity and social upheaval reshaping this sacred city—balancing royal ambition, global investor appetite, local critiques, and religious tradition.
Listeners come away with:

• A nuanced understanding of Mecca’s real estate market and economic context
• Insight into the cultural and socio-economic tensions behind Mecca’s modernization
• Recognition of the pivotal role of religious tourism in Saudi Arabia’s future and the international maneuvering it inspires