In January 2017, Al-Bayan Charitable Foundation for Education approached IsDB to request financing the construction of a hotel in the Central Region of Al-Madinah Al-Munawarah to generate income for the Foundation’s charitable activities. Because of disagreements, the project was suspended, and the Foundation resubmitted a financing request by August 2018, after which an agreement was reached. 

With a total construction cost of US$ 10.87 million dollars, $8.8 million of which are to be financed by APIF and APIF Line, the project would provide income for the Foundation’s educational institutions, including the Prince Murqin bin Abdul-Aziz University in Madinah, which currently provides education for over one thousand students. Offering Bachelor’s Degrees in Engineering, Business Administration, and Computer and Information Technology, the University’s first batch of students have graduated during the academic year 2018/2019. 

IsDB has issued two TA Grants in favor of the Foundation: one amounting to US$ 100,000 aimed at reviewing the business model of the University and making it more sustainable and another amounting to US$ 280,000 aimed at purchasing equipment for the Electronics Laboratories of the University.   

Because the hotel will be located within close proximity to Majid Nabawi and since it lies in the main commercial district in Madinah, it offers various demand drivers. The 4-star facility comprises of a 12-storey building with 2 basements with a total construction area of 8500 m2. 

With core objectives that align with IsDB strategies, like human development, empowerment of women through education, development of Islamic financing, and economic development of IsDB-member countries, the construction of a hotel for Al-Bayan Foundation presents promising yields for the educational sector in Madinah.