Lembaga Tabung Haji to invest more in real estate in Mecca, Madinah

KUALA LUMPUR: Lembaga Tabung Haji expects to invest more in real estate in Mecca and Madinah in the next one to two years in its move to keep the cost of Hajj performance at affordable rates.

Its Group Managing Director and Chief Executive Officer, Datuk Ismee Ismail, said the group has been seriously looking at investment opportunities there since 2008.

"We are actively looking for investment opportunities especially in Mecca. There have been many proposals but we need to check the pricing, distance from the mosque to the hotel and other needs," he told reporters on March 29.

Ismee was responding to a question on why the cost of performing Hajj was still increasing despite the various investment strategies by the group.

In terms of Hajj, the flight ticket and accommodation are the two major costs involved, he said.

"If we look at accommodation in Mecca right now, many buildings have been torn down to make way for new buildings. So currently, there is a shortage of accommodation during the Hajj period," Ismee said.

Besides this, Lembaga Tabung Haji is also negotiating with house owners in the city not to increase drastically the cost of accommodation.

The group has so far invested RM600 million on two buildings in Mecca and Madinah for the accommodation of pilgrims.

"We have leased one building which is Hajar Tower in Mecca where we have taken five floors with 220 rooms. They are expected to be ready either next month or by latest this Ramadan (September)," he said.-- Bernama