Al Balad Targets 1,800 Hotel Rooms in Historic Jeddah

Al Balad Development Company, a Public Investment Fund (PIF)-owned entity, has announced plans to deliver 1,800 hotel rooms, more than 9,000 residential units, and over one million square meters of retail and office space in Historic Jeddah, according to an official statement released via the Saudi Press Agency (SPA). The announcement was made by the company’s Chief Executive Officer, Jamil Hassan Ghaznawi, during the World Travel Market in London, one of the global travel industry’s most influential gatherings. The initiative positions Historic Jeddah, a UNESCO World Heritage Site, at the center of a comprehensive urban regeneration effort that blends heritage preservation with modern commercial development.

The scale of the project underscores Saudi Arabia’s determination to transform its cultural assets into engines of economic growth. Historic Jeddah, known locally as Al Balad, is one of the Kingdom’s most treasured areas, home to centuries-old coral-stone buildings, traditional markets, and a rich tapestry of Islamic history. By committing to such ambitious development targets, Al Balad Development Company is signaling that heritage and modernity can coexist productively. The project is expected to attract significant local and international investment, create jobs, and elevate Jeddah’s standing as a premier tourism and business destination in the region.

Context and Background

How did Historic Jeddah become the focal point of such a transformative development agenda? The area, which dates back over a thousand years, served as the gateway for pilgrims traveling to Mecca and played a pivotal role in the region’s maritime trade. In 2014, UNESCO inscribed Historic Jeddah on its World Heritage List, recognizing its outstanding universal value. However, years of neglect had left many of its historic structures in disrepair. The establishment of Al Balad Development Company, wholly owned by the Public Investment Fund, marked a strategic turning point. The company was tasked with restoring and rehabilitating the area while unlocking its economic potential.

Al Balad Development Company’s mandate is broad: it oversees development, reconstruction, management, and operation of hotel, residential, office, and retail properties. The company is also responsible for infrastructure preparation, land design, and asset management. A key part of its strategy involves converting some historic properties into heritage hotels, offering visitors an immersive experience that celebrates the area’s unique architectural and cultural identity. This approach aligns with global trends in heritage tourism, where travelers seek authentic, culturally rich experiences. The project is not merely about construction; it is about revitalizing a community and preserving a legacy for future generations.

The timing of the announcement at the World Travel Market in London is significant. It places Historic Jeddah on the international stage, directly in front of global investors, tour operators, and hospitality brands. By presenting the project to this audience, Al Balad Development Company aims to attract partnerships that will bring world-class expertise and capital into the Kingdom. This outreach is part of a wider effort to diversify Saudi Arabia’s economy and reduce its dependence on oil revenues, a core objective of Vision 2030.

Key Details of the Development Plan

What exactly does the plan entail, and how will it reshape Jeddah’s urban landscape? According to Jamil Hassan Ghaznawi, the company aims to deliver 1,800 hotel rooms across various projects. This will significantly boost Jeddah’s hospitality capacity, catering to both leisure and business travelers. In addition, more than 9,000 residential units will be developed, providing modern living spaces that respect the historic fabric of the area. The plan also includes over one million square meters of retail and office space, creating a vibrant mixed-use district that will stimulate economic activity and foster a conducive environment for work and leisure.

The development goals extend beyond physical infrastructure. Ghaznawi emphasized that the initiative is designed to stimulate economic activity, support job creation, and increase visitor numbers. By creating environments that are attractive to both residents and tourists, the project aims to generate a virtuous cycle of investment and growth. The company is preparing the infrastructure to attract local and international investors and operators, ensuring that the private sector plays a central role in the area’s revival. This collaborative approach is expected to accelerate the pace of development and ensure long-term sustainability.

Historic Jeddah itself provides a remarkable canvas for this endeavor. The area hosts five historic markets, more than 600 historic buildings, and 36 historic mosques. These assets are not merely relics; they are living components of the city’s identity. The restoration and rehabilitation of these buildings will be carried out with sensitivity to their historical significance, using traditional materials and techniques where possible. At the same time, modern amenities and infrastructure will be integrated to meet contemporary standards. The result will be a unique destination that offers visitors a journey through time while providing all the comforts of the present.

International and Regional Impact

How will this development influence Saudi Arabia’s position on the global tourism map? The World Travel Market in London is a key platform for countries to showcase their tourism offerings. By announcing these ambitious targets there, Al Balad Development Company has signaled that Saudi Arabia is serious about becoming a top-tier tourism destination. The Kingdom has already made significant strides in this direction, with relaxed visa policies, major entertainment events, and the development of new resorts along the Red Sea coast. Historic Jeddah adds a cultural dimension to this portfolio, appealing to travelers interested in heritage, history, and authentic experiences.

Regionally, the project is expected to have a positive spillover effect. Jeddah is the gateway to Mecca, welcoming millions of pilgrims annually. By enhancing the city’s hospitality and retail offerings, the development will enrich the experience of these visitors and encourage them to extend their stay. Moreover, the project will create opportunities for small and medium-sized enterprises, from artisanal crafts to food and beverage outlets. This inclusive growth model is central to Vision 2030, which seeks to ensure that the benefits of economic development are widely shared. International investors are likely to take note, as the project offers a rare combination of cultural significance and commercial potential.

Economic and Strategic Significance

Why does this project matter for Saudi Arabia’s economic future? The development of Historic Jeddah is a prime example of how the Kingdom is leveraging its cultural heritage to drive economic diversification. Tourism is a key pillar of Vision 2030, with targets to increase the sector’s contribution to GDP and create hundreds of thousands of jobs. By investing in world-class hospitality and retail infrastructure, Al Balad Development Company is helping to build the ecosystem needed to achieve these goals. The project will also stimulate ancillary industries, such as construction, design, and logistics, generating ripple effects across the economy.

Furthermore, the involvement of the Public Investment Fund underscores the strategic importance of the initiative. PIF is Saudi Arabia’s sovereign wealth fund and a major driver of Vision 2030. Its backing provides financial strength and credibility, attracting co-investors and partners. The focus on attracting local and international operators ensures that the project will benefit from global best practices in hospitality management, retail curation, and heritage conservation. This blend of public vision and private sector efficiency is a model that Saudi Arabia is applying across multiple giga-projects, from NEOM to the Red Sea Project. Historic Jeddah, however, is unique in that it revitalizes an existing urban core, setting a precedent for sustainable urban regeneration.

Vision 2030 Alignment

How does the revitalization of Historic Jeddah embody the aspirations of Vision 2030? The Vision, launched in 2016 by Crown Prince Mohammed bin Salman, aims to transform Saudi Arabia into a diversified, innovation-driven economy. It encompasses ambitious goals for tourism, culture, and quality of life. The restoration of Historic Jeddah directly supports these objectives by preserving a vital part of the Kingdom’s heritage while creating modern amenities that enhance livability. It also aligns with the Vision’s emphasis on increasing international visitor numbers and promoting Saudi Arabia as a destination of choice for culture and heritage tourism.

In the long term, the project will contribute to the Kingdom’s broader narrative of progress and openness. By welcoming the world to experience the beauty and history of Al Balad, Saudi Arabia is sharing its story and building bridges of understanding. The development is not just about buildings; it is about people, culture, and the future. As Al Balad Development Company moves forward with its plans, it is setting a benchmark for how heritage can be a catalyst for economic and social transformation. The world will be watching, and the Kingdom is ready to deliver.

20 Questions

Q1. What is Al Balad Development Company?

A1. Al Balad Development Company is a Public Investment Fund (PIF)-owned entity responsible for the development, reconstruction, management, and operation of hotel, residential, office, and retail properties in Historic Jeddah.

Q2. What are the key targets announced by Al Balad Development Company?

A2. The company aims to deliver 1,800 hotel rooms, over 9,000 residential units, and more than one million square meters of retail and office space in Jeddah through various projects.

Q3. Who is the CEO of Al Balad Development Company?

A3. Jamil Hassan Ghaznawi is the Chief Executive Officer of Al Balad Development Company.

Q4. Where was the announcement made?

A4. The announcement was made at the World Travel Market in London, a leading global travel industry event.

Q5. What is Historic Jeddah?

A5. Historic Jeddah, known as Al Balad, is a UNESCO World Heritage Site that dates back over a thousand years and is known for its historic buildings, markets, and mosques.

Q6. How many historic buildings and mosques are in Historic Jeddah?

A6. Historic Jeddah hosts more than 600 historic buildings and 36 historic mosques, along with five historic markets.

Q7. What is the role of Al Balad Development Company in the restoration process?

A7. The company is responsible for the restoration and rehabilitation of buildings, land design and development, and asset management, including converting some properties into heritage hotels.

Q8. How does this project align with Saudi Vision 2030?

A8. It supports Vision 2030 by stimulating economic activity, creating jobs, increasing visitor numbers, and promoting heritage tourism, contributing to economic diversification.

Q9. What economic benefits are expected from the project?

A9. The project is expected to stimulate economic activity, support job creation, attract local and international investors, and enhance Jeddah’s hospitality and retail sectors.

Q10. Who owns Al Balad Development Company?

A10. Al Balad Development Company is owned by the Public Investment Fund (PIF), Saudi Arabia’s sovereign wealth fund.

Q11. What types of properties will be developed?

A11. The development includes hotel rooms, residential units, retail spaces, and office spaces, all integrated within the historic area.

Q12. Why is the World Travel Market in London significant for this announcement?

A12. It is a global platform that attracts travel industry leaders, investors, and media, providing international exposure and attracting potential partners.

Q13. How will the project impact local communities?

A13. It will create jobs, support small businesses, and improve infrastructure, enhancing the quality of life for residents and preserving cultural heritage.

Q14. What is the significance of converting properties into heritage hotels?

A14. Heritage hotels offer visitors an immersive cultural experience, celebrating the area’s architectural identity while providing modern comforts.

Q15. How does this project contribute to Saudi Arabia’s tourism goals?

A15. It adds a unique cultural destination to Saudi Arabia’s tourism offerings, attracting heritage travelers and boosting visitor numbers.

Q16. What infrastructure is being prepared to attract investors?

A16. Al Balad Development Company is preparing infrastructure such as utilities, roads, and public spaces to create an attractive environment for investors and operators.

Q17. What is the expected timeline for the project?

A17. Specific timelines have not been announced, but the company is actively preparing infrastructure and seeking partners to begin development phases.

Q18. How does the project preserve Historic Jeddah’s heritage?

A18. Restoration and rehabilitation will use traditional materials and techniques, ensuring that the area’s historical character is maintained while integrating modern amenities.

Q19. What role do local and international investors play?

A19. They are expected to bring capital, expertise, and global best practices in hospitality, retail, and heritage conservation, driving the project’s success.

Q20. What is the long-term vision for Historic Jeddah?

A20. The vision is to transform Historic Jeddah into a vibrant, sustainable destination that celebrates its heritage, drives economic growth, and enhances Saudi Arabia’s global standing.

Reader Feedback

We value your thoughts. Please share your feedback on this article.

Name *

Message *

Your feedback helps us improve our coverage.