Taiba signs MoU to develop, operate 3 hotels in Madinah

Taiba signed MoU with GOSI subsidiary

Taiba Investments Co. signed a non-binding memorandum of understanding (MoU) on Nov. 17 with Osoul Integrated Real Estate Co., a subsidiary of the General Organization for Social Insurance (GOSI), to develop and operate three hotels in the central area of Madinah.

Osoul Integrated will own the hotels, Taiba said in a statement to Tadawul, adding that the project will be implemented through the establishment of a special-purpose firm.

The capital of the special-purpose firm will be determined at a later stage.

The MoU extends for 180 days from the date of signing, renewable for a similar period.

The agreement aims to redevelop three hotels located on the northern side of the central area in Madinah, with a total of 1,500 keys, and to prepare them as world-class hospitality destinations that reflect the architectural character of Madinah and meet the expectations of pilgrims, Umrah performers, and visitors from around the world.

The project will also support the development of the hospitality sector in Madinah and enhance service quality for the Guests of Allah, in addition to adding hotel assets to Taiba’s investment portfolio.

The company pointed out that Fahad Al-Qassim, a board member of Taiba and also serves as Chairman of Osoul Integrated, is a related party.

The financial impact cannot be determined at this stage until a final agreement is reached between both parties.

Taiba noted that the MoU aligns with its strategy to expand in the hospitality sector and support tourism growth in line with Saudi Vision 2030.