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Grace In Place

Makkah Smart Food City


Work, Live and Leisure
Under the patronage of:
And the auspices of:

H.E. Engineer Abdullatif


H.R.H. Prince Khaled Al Faisal
Al-Alshaikh
Governor of Makkah Province Minister of Municipal and Rural
Affairs

King Salman bin Mohammad bin


Abdulaziz Al Saud Salman Al Saud
Deputy Crown Prince of Saudi Amin Abdelkader
King of Saudi Arabia H.E. Dr. Osama Fadl Al Bar
Head of Investment at the
Arabia Minister of Defense Mayor of the Holy City of Makkah
Municipality of Makkah
History

Brief history of Makkah trading (Summer and Winter journey)


As a place with a key position on the caravan trail along the western coast of Arabia,
Makkah became, over centuries, the largest trading station of the peninsula.
The consequences for Makkah were, what became known in the Arabian
tradition as, the Winter and Summer Journeys.
History

Existing market
Built years ago, the current food and vegetable market of Makkah, although serving its main purpose to
a certain extent, is relatively small, in a state of disintegration, badly organized and mostly unhygienic.
It lacks proper maintenance and desperately needed regular cleaning.
This is due to the fact that no development of great consequence has ever taken place and has been
completely neglected over years resulting in the deterioration of its out-dated infrastructure.
Total lack of vision, inexistent sponsorship and funding; makes the existing Food
Market a thing of the past in desperate need of a
complete overhaul and renovation.
Current market
Location
Initial Plan

Area  Area 

Area  Area  Area 


‫‪Plans & Distribution‬‬

‫تدوير‬
‫ومعالجة‬
‫ق‬ ‫قرية ية‬
‫رية التموين‬ ‫ومرافق‬
‫ال ست‬
‫وج‬
‫ا لل‬

‫السوق المركزي‬
International Markets - Benchmark

Bonn Market - Germany Brooklyn Market - USA Paris Market - France

Al madina Mounawara - Market Tsukiji Fish Market - Tokyo Great market Hall - Budapest
Project in Numbers

The first and the biggest central market in the Middle East covering One Million Square Meters

Potential number of jobs created throughout the different stages during the project estimated Fifteen
Thousands Jobs

Number accommodation & residence units estimated Forty Thousand

First specialized logistic Smart district for food covering Four Hundred Thousand Square Meters

First Smart village for catering estimated Three Hundred Thousand Square
meters
Background

What is the Eighth Pillar and why were they awarded the project?
The 8th pillar Investment Company has three parts:

Research Investment Partnership


Centre Arm Network

Due to the deteriorated state of the existing food market and based on its recent achievements, the Municipality
of Makkah has awarded the 8th Pillar, a Government Investment Bid to conceive, develop and build a new
Central Vegetable & Fruit Market to replace the existing one.
Visio
n

To build a large Smart Food City, unrivaled locally, regionally and globally in both size and design and to
reposition the city of Makkah as the main historical Trading market of the western region. The new Makkah
Central Food Market project, which will be known as The Makkah Smart Food City (MSFC) will become the
new Trading Hub, not only for our region, but also for the entire
Middle East, the Gulf Region and all Muslim nations.
Mission

To build an integrated smart multiple facilities centre on a land, not far from Makkah Holy Mosque, that will
cover a staggering 3.5 million square metres and will, a part from the huge Central Food Market, include a mega
Mall, other shopping experiences such as an International food Village which will cater for a mix of Smart food
facilities and entertainment and capable of providing, from half a million up to 10 million meals a day, to hotels
and all types of events. It will also have a wholesale
market a regular Food Auction a Logistic smart village and
“State of the Art” smart warehousing.
Its values

A Launchpad as a Mega Smart Food City, it will compete with global examples such as “Paris,
London, Brussels and many other large markets”, considering quality, integrity and promises that will
be kept and sustained.
This will optimize businesses investments and provide quality food services that
exceed the expectations of our esteemed customers,
restaurants, Hotel etc.
Master Plan
Restaurants & Cafeterias
Mall &
Retail
Financial Indicator

Subject Details Comment


Only 2.3 million
1 Long Lease Period 25 Years – Renewable Square meters
3.5 million square meters (Flat Land)

Ownership 100% Eighth Pillar & Partners


Limited Liability
2 Contract direct with Could transfer assignment to newly
Joint -Stock
Makkah Municipality formed owner company
3 Paid Capital Pre -Contract
4 Total Investment 5 Phases
5 Committed Contracts Non except for Mountain & Earth Optional
6 Feasibility & Plans Work scope and providers identified
7 Municipality Terms Only Building Code Guide Lines
8 Project Infrastructure The land is not developed
All available in next 300 m but requires Power Step-down
9 Utilities Availability
very expensive connections Cost 100 million SR

10 Service Connectivity Waist collection & Treatment


Diversified mix Other Activities
11 Revenue Streams 75% Real-estate & Property Advertizing &
25% Events, Industrial & Auctions Fleet Operation

12 Initial IRR value 28 on low occupancy up to 38 on high occupancy


Equity Offered
Objectives

Revolutionize Integrate traditional and


the Food Market Smart progressive
perception services

By putting Smart facilities at work we are inevitably putting Makkah back on the map of future smart markets
and in a support position with the 2030 vision.
In cities around the world, the food market is a vast, bustling place, home to expert butchers, fishmongers, and
producers. It’s where you’ll find the freshest vegetables, regional specialties, and probably, a meal from a vendor
using the goods at hand to feed hungry shoppers, visitors and pilgrims.
Components of
the project

Logistics (Village): Distribution, Industrial catering kitchen, Chef Exhibition Hall specialties such as
Transport, Shipping, Warehousing, School, half a million to 10 million Moroccan, Indonesian, French, and
Storage etc. portions a day etc. Chinese

Wholesale market facilities, Leisure/ entertainment: A Housing, accommodations and


Auction Area (3 corridors) Fusion of Food and Fun. Hospitality.
Retail market facilities (8
corridors)
Project phases
Over 5 Years

Technical Marketing Supporting Legal


Steel structure Greenmarcom, Documents
Specification for design Marketing, Advertising, Municipality and other
and materials Social Media etc. official Concerns.

The Investment Platform: Financial Indicator Appendix


Multiple investment packages; Initial IRR value
International infrastructure developers, 28 on low occupancy up to
Constructers and investors 38 on high occupancy
Thank You

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