Danantara completes purchase of 4.4-hectare land in Makkah

MAKKAH, Saudi Arabia — Indonesia's sovereign wealth fund Danantara has completed the acquisition of a 4.4-hectare land parcel in Makkah, the fund said in a statement. The deal was completed on October 18 through Danantara Investment Management, its investment holding arm.

Danantara plans to build an integrated complex of hotels, retail outlets and supporting facilities for pilgrims taking part in the Hajj and Umrah, according to the statement. The development will proceed in phases with local developer Al-Khomasiah, subject to feasibility studies, regulatory approvals and permitting.

Danantara CEO Rosan Roeslani said the investment would form the basis of a long-term hospitality platform in Saudi Arabia. He said the fund would look at further opportunities in Madinah. Thakher Development chief executive Faisal Shaker said the company would work with Danantara on later phases, including efforts to house more Indonesian pilgrims near the Grand Mosque.

The financial terms were not disclosed. Danantara has not given a timeline or the planned investment value for the development.

Background

The land purchase follows the takeover of the 1,461-room Novotel Thakher Makkah hotel, which was handed over to Danantara on August 11, according to the fund. Danantara and Thakher Development Company announced a strategic agreement in December 2025.

Shaker said the transaction took 10 months from signing to transfer of ownership. Danantara said the acquisitions add to its overseas investment activities, which aim to manage state assets and pursue investments in line with Indonesia's economic priorities.