THE Jabal Omar Development Company has awarded a contract worth SR3.4 billion ($906.6 billion) for a project in Makkah which has been delayed due to the recession, a local newspaper reported. 

The contract involves the construction of nine hotels and 89 residential apartments in the first phase and four hotels and 72 apartments in the second phase, the Arab News said.

Jabal Omar Development Company, which is building a number of residential projects in front of the Grand Mosque in Makkah, will now complete the project in phases due to the delay, the report said quoting a source close to the company.

The previous contractors – Saudi Binladin Group and Saudi Oger – cited inadequate funds due to the financial crisis as the reason for giving up the project that was scheduled to be completed this year. The rocky terrain also contributed to the difficulties, the report added.