Saudi-based Jabal Omar Development Company has signed a SR3.4 billion ($906.6 million) contract for the construction of a massive project in Makkah comprising luxury hotels, retail outlets and residential apartments, said a report.

The project was scheduled to be completed in 2011 but got delayed due to global crisis.

Saudi Binladin Group and Saudi Oger, were the project’s previous contractors, but could not complete it, the Arab News reported.

“Earlier we had a plan to complete the project in one go by 2011. Because of the delay, we have decided to implement it in phases,” the report said, citing sources.

The first phase will see the developnment of nine hotels and 89 residential apartments, while four hotels and 72 apartments will be ready in the second phase, the source added.

Besides the project will have hundreds of shops and air-conditioned prayer facilities for 100,000 worshippers, as well as housing, close to the Grand Mosque, the report said.

Jabal Omar is currently developing a number of residential projects in front of the Grand Mosque in Makkah.