Indonesia's sovereign fund secures historic property rights in Mecca
Indonesia's sovereign wealth fund Danantara received ownership certificates for a hotel and 14 plots in Mecca, marking the first time a foreign state holds property in the holy city.
Indonesia's sovereign wealth fund Danantara, through Danantara Investment Management, has been issued ownership documents for a major hotel and fourteen surrounding parcels in Mecca. The assets, comprising the 1,461-room Novotel Thakher Makkah Hotel and adjacent development plots, are located in the Thakher Makkah urban project roughly 1.2 kilometres north of the Masjid al-Haram. The purchase price was reported as 2 billion riyal.
Thakher Development, the project's master developer, handed over the certificates, completing the acquisition. Faisal Shaker, chief executive of Thakher Development, described the transaction as a historic moment that signals international confidence in the development.
Why it matters
It shows Indonesia's expanding overseas investment and sets a precedent for foreign state ownership in Mecca.
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