Business · Companies · 2 hrs ago
BPKH plans $67 million fund for hotels in Mecca and Medina
Indonesia’s Hajj finance agency, BPKH, has introduced a fund for hotel capacity in Mecca and Medina.
The planned fund would raise 250 million Saudi riyals, or about $67 million, over a 10-year term.
It would be a sharia-compliant fund managed under Saudi market rules.
The fund would lease hotel properties from their owners and sublease them to BPKH Limited, BPKH’s Saudi subsidiary, which would run hotel operations.
This structure is intended to let BPKH expand its role in hospitality without paying large upfront costs to own or lease properties directly.
The fund targets an investor return of about 8%, but that is not guaranteed.
The initiative aims to help serve growing Hajj and Umrah demand and build cooperation between Indonesian and Saudi investors.
BPKH says the fund will include fixed rental contracts, independent oversight, property inspections and contingency reserves.
BPKH introduced the Haramain Hospitality Fund to invest in hotel capacity in Mecca and Medina.
The fund is targeted at 250 million Saudi riyals, or about $67 million, with a 10-year term.
It aims to offer investors a return of about 8%, which BPKH says is a target, not a guarantee.
The Sharia-compliant fund would lease hotel properties from their owners and sublease them to BPKH Limited.
BPKH says the structure would let its Saudi subsidiary focus on hotel operations serving Hajj and Umrah pilgrims.
- Who
- Indonesia’s Hajj Fund Management Agency (BPKH) introduced the fund. BPKH Limited, its subsidiary in Saudi Arabia, would operate the hotels.
- What
- A Sharia-compliant, closed-end investment fund for hotel capacity in Mecca and Medina.
- When
- The initiative was presented on October 15, 2026.
- Where
- The hotels would be in Mecca and Medina, Saudi Arabia. The initiative was presented at the International Hajj Fund Forum in Indonesia.
- Why
- BPKH says the fund would help it take part in the hotel sector and serve growing demand from Hajj and Umrah pilgrims.
This story does not have two clearly opposing sides.
Fadlul Imansyah presented the Haramain Hospitality Fund at the International Hajj Fund Forum.
CNBC Indonesia published its report on the fund.
- Target fund size
- 250 million Saudi riyals, about US$67 million
- Fund term
- 10 years
- Target return
- About 8%, not guaranteed
- Fund structure
- Closed-end, Sharia-compliant, and regulated by Saudi Arabia’s Capital Market Authority
- Hotel locations
- Mecca and Medina
What people are saying
Taking advantage of this significant opportunity, I would like to introduce one of our strategic investment initiatives, called the Haramain Hospitality Fund.
This initiative is designed to provide an innovative, asset-light investment structure to access hotel capacity in Mecca and Medina.
For investors, this initiative offers a potential yield of around 8%.