Cranes line new promenades leading towards the Grand Mosque, where swathes of older neighbourhoods have been cleared to make way for high-rise hotels and mixed-use towers designed to serve growing numbers of pilgrims. Developers and advisers say international interest has intensified since regulatory changes allowed foreign investment in listed companies owning real estate in Mecca and Medina, cities previously closed to non-Saudi capital because of religious restrictions.

Property advisers in the kingdom describe a surge of enquiries from regional family offices, Asian funds and Gulf-based asset managers seeking exposure through real estate investment trusts and development partnerships. Yasser Abu Ateek, a long-time Mecca real estate broker, has spoken publicly about a sharp increase in calls from overseas investors following the rule changes, reflecting pent-up appetite for assets close to Islam’s holiest site.

Economists say the strategy reflects a broader recalibration rather than a retreat from Vision 2030. With sovereign wealth channelled through the Public Investment Fund, authorities are juggling large-scale industrial bets, giga-projects and more traditional revenue-generating sectors. Tourism receipts, including religious tourism, are seen as a steady foreign exchange earner less vulnerable to commodity cycles.

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