Indonesia’s sovereign wealth fund Danantara has completed the acquisition of a 4.4-hectare land parcel in Makkah, Saudi Arabia, following its takeover of a 1,461-room hotel in the city in August.
The land acquisition was completed on October 18 through Danantara Investment Management (DIM), the investment holding arm of Danantara, the agency said in a statement. The hotel, Novotel Thakher Makkah, was handed over to Danantara on August 11.
The transactions follow a strategic agreement between Danantara and Thakher Development Company announced in December 2025. The financial terms of the acquisitions were not disclosed.
Danantara plans to develop the land as part of an integrated complex comprising hotels, retail outlets and supporting facilities for pilgrims travelling to Makkah for the annual Hajj pilgrimage and Umrah, the year-round pilgrimage.
The development will be carried out in phases alongside local developer Al-Khomasiah, subject to feasibility studies, regulatory approvals and permitting requirements.
Danantara CEO Rosan Roeslani said the investment would form the basis of a long-term hospitality platform in Saudi Arabia, with plans to explore additional opportunities in Madinah and other strategic sectors.
The acquisition adds to Danantara’s overseas investment activities as the agency seeks to manage state assets and pursue investments aligned with Indonesia’s economic priorities.
Thakher Development chief executive Faisal Shaker said the transaction was completed within 10 months, from signing to the transfer of ownership. He added that the company would work with Danantara on subsequent development phases, including efforts to accommodate more Indonesian pilgrims near the Grand Mosque in Makkah.
Danantara said the land would support the gradual expansion of accommodation capacity and related services. It did not provide a timeline or disclose the planned investment value for the development.
