The foundations for an expected investment agreement with the Indonesian Hajj Fund in Mecca
Assas Company signed a strategic memorandum of understanding with the Indonesian Hajj Fund (BPKH), the government entity responsible for managing and investing Hajj funds in the Republic of Indonesia, to explore and develop promising investment partnership opportunities in Makkah. This signing took place within the framework of the “Markaz Al-Balad Al-Amin” initiative, a vital platform that brings together leaders and investors to strengthen international partnerships and develop investment opportunities in the Kingdom of Saudi Arabia, in line with the Kingdom’s Vision 2030 objectives for developing the Hajj and Umrah sector.
Details of the agreement signed between Assas Company and the Indonesian Hajj Fund
The memorandum of understanding was signed in the presence of His Excellency the Mayor of the Holy City of Mecca, Mr. Musaed Al-Dawood, with Mr. Ahmed Al-Qahtani, CEO of the group, representing “Asas” Company, and Dr. Indra Gunavan, Executive Board Member and Head of Investment, representing the Indonesian Hajj Fund (BPKH), in the presence of a number of senior representatives of both parties and those interested in the endowment and development investment sector in the Holy Sites.
This memorandum primarily aims to explore new avenues for investment partnerships and develop high-quality, Sharia-compliant projects that generate sustainable financial returns for both parties. The collaboration will focus on developing real estate and service projects in Makkah, prioritizing initiatives that directly enhance the experience of pilgrims and expand the capacity of residential and service facilities.
Historical dimensions and strong bilateral relations between the Kingdom and Indonesia
This step comes within the framework of the distinguished historical relations between the Kingdom of Saudi Arabia and the Republic of Indonesia, which are witnessing continuous development in various economic and religious fields. Indonesia is the world's most populous Muslim-majority country and has sent the largest annual Hajj pilgrimage delegation to the Holy Land over the past decades. Therefore, cooperation with the Indonesian Hajj Fund of paramount strategic importance, as the Fund seeks to invest the savings of Indonesian pilgrims in safe and viable projects within the Kingdom, ensuring the provision of the best possible services to their citizens during their pilgrimage.
Expected economic and developmental impact on the Hajj and Umrah sector
This partnership is expected to have a tangible positive impact both locally and internationally. Locally, the joint investments will revitalize the real estate development and hospitality sectors in the Holy City of Mecca, create new job opportunities, and support local content. Internationally and regionally, it offers a model for how sovereign wealth funds and Islamic endowments can invest in sustainable development projects that benefit the entire Muslim community.
In this regard, Mr. Abdullah Al-Majed, Chairman of the Board of Directors of “Assas” Company, stated: “This memorandum represents an important step in strengthening Saudi-Indonesian cooperation in the Hajj and Umrah sector. Through our partnership with the Indonesian Hajj Fund, we seek to develop Sharia-compliant investment assets that contribute to attracting foreign investments to the Kingdom, serve the pilgrims, and achieve sustainable added value in the long term.”
Dr. Indra Gunavan, Executive Board Member and Chief Investment Officer of the Fund, commented: “This partnership supports the Fund’s strategy of investing prudently in Sharia-compliant Islamic products within the Kingdom of Saudi Arabia, generating competitive returns and contributing to improving the quality of services provided to Indonesian pilgrims. This investment aligns with our new strategy, which focuses on a stable and sustainable investment framework, and we look forward to a fruitful and long-term collaboration with Assas Company.”
This agreement confirms the Kingdom’s leadership as an attractive and safe investment destination, and highlights the active role of Saudi private sector companies such as “Asas” in building bridges of international cooperation and attracting foreign capital to contribute to achieving comprehensive development in line with the ambitious national vision.
