Ceylon House Makkah Compensation Expected At US$ 100 Million?
By Faraz Shauketaly
Ceylon House – a pilgrims rest in the holy city of Makkah (Mecca), in Saudi Arabia – is set to receive compensation in the region of USD 100 Million (LKR 12 Billion) after the Saudi Arabian authorities sought the compulsory purchase of the building. The Authorities have cited the expansion of the Grand Mosque – the focal point for Muslims globally – and have offered to pay compensation.
Spearheading the negotiations with the Saudi authorities is Senior Minister A. H. M. Fowzie who together with his friend and President’s Counsel, the late Ambassador to Saudi Arabia, A. A. M. Marleen have been conducting negotiations since 2006. Ceylon House was established in late 1959 / early 1960 with the help of past luminaries such as Dr. T. B. Jayah and his contemporaries at the time. Senior Minister A. H. M. Fowzie was unable to confirm the anticipated level of compensation saying that the matter is with the Courts who will rule on the basis of compensation or an alternative accommodation. Minister Fowzie was able to confirm that the matter is being handled by a Saudi national of Sri Lankan descent, Sadeek Hajiar whose family have a long involvement in the administration of Ceylon House.
Other sources from Saudi Arabia indicated however that the Sri Lankan trust that owns Ceylon House with special permission from the late King Saud are running into problems with the administrator of the building whose intentions they say are ‘unholy’ at best. There is a move for the compensation to be paid to the government of Sri Lanka’s Foreign Ministry although our source in Saudi Arabia states that as the ownership is with the Trust, it is they who will receive the compensation.
Makkah in Saudi Arabia is one of the world’s most expensive places to purchase property. Land in Makkah is valued at more than SR 500,000 or USD 133,300 per square meter with land closer to the Grand Mosque fetching considerably more – in places at least SR 700,000 or USD 185,000 per square meter. In Sri Lanka terms that translates to USD 539 Million or LKR 70 Billion per acre at the lower end of the scale and to LKR 98 Billion (LKR 98,000,000,000) per acre at the upper end of the scale. Land in Trincomalee by contrast fetches approximately LKR 20 Million per acre and in Colombo at LKR 800 Million an acre.
According to Canadian-Muslim Tom Hertell a Jeweller who has made Saudi Arabia his home for over 30 years property in Makkah is the best place without equal to invest in property. The prices are moving steadily upwards as the Grand Mosque expands to accommodate an ever-increasing number of worshippers. Says Ahmad Al-Ghamdi a property investor, “land has become so expensive driven by the demand, that it is actually more valuable than gold and diamonds.”
Realtor Ibrahim Halim says, “Makkah is home to 688,000 residents apart from the continuous pilgrims who visit every day aside from the peak Hajj season. Makkah will need 88,600 apartments and 137,000 homes and we expect that a further 35,000 apartments will be built, fuelling a USD 4 Billion programme of investments.” In 2010 it was reported that the Saudi government had earmarked a fund of USD 10.7 Billion or LKR 1.3 Trillion to fund compensation payments to owners of properties in the immediate vicinity of the Grand Mosque. The City of Makkah is closed to all non-Muslims.
(faraz@thesundayleader.lk)








Thank you for the math lesson. At least you have got it all right. Most of the Sri Lankan journalists have no clue whatsoever about numbers more than 100 000.
I believe this compensation will help the poor souls in the government to have their morning cup of tea
Fowzie is there just in time to rake in the moolas
The money will be stolen by the kinbutt family..watch out Saudi Arabia…
I hope the compensated money is put to good use, instead of ministers getting their cut!
BETTER NOT TO TAKE THE MONEY , TAKE THE LAND IN THE NAME OF SAME “CEYLON HOUSE” IF YOU TAKE MONEY THE PROPERTY WILL BE LOST FOR EVER , THERE WILL BE NO MORE PERMANENT LAND GIVEN BY SAUDI AUTHORITIES ANY MORE TO ANY COUNTRY , THIS LAND BELONGS TO SRI LANKA IN A FOREIGN COUNTRY, OUR SL GOVT WILL ASK FOR MONEY FOR THEM TO DIGEST , DO NOT SELL THIS , IF SOLD THEN OUR SL AUTHORITIES HAS TO ANSWER THE ALMIGHTY AND WILL BE PUNISHED OUTRIGHT IN BROAD DAY LIGHT
You are just being emotional.
Whats god punishment has to do with selling of the land. Sri Lankan politicians will spend the Ceylon House money or spend some other money the way they want, and it is irrelevant; If someone steal this money or any other money which they are entrusted upon, they will one day pay the price for it, whether it is a government person or a trustee of the mosque, temple, or church. Now coming back to the topic, if the land belongs to the Sri Lankan government, the government can decide whatever they want.
People go to Haj or Umra on their own accord and they have to make sure that all provisions including accomodation is arranged. The Saudi government has done enough to make Haj/Umra a luxury compared to what it was hundreds of years ago.
Sri Lankan government is not a sharia government and we can’t expect them to do everything according to Islam. On the other hand they have responsibilities according to the law of the land (the constitution) towards its citizens.
Are you mad ! The property does not belong to the Sri Lanka Government. The SL govt never paid a cent. This was granted by the former Saudi King as a gift for the muslim Hadj pilgrims. The Govt of Sri Lanka Did not pay cent. So it should be used for the purpose for wshich it was gifted by the former King.
Every wehere you people pork your nose and hit the minority. This is how your attitudes have been
Now please make sure that money is again utilized to by a Ceylon House around Makkah. Sri Lankan heros like TB Jayah had successfully met the Saudi King whereas in the near past no Sri Lankan diplomat even managed to contact him over the phone.
WE NO LONGER HAVE MUSLIM LEADERS.WE NOW HAVE “DEALERS”
THIS PROPERTY BELONGS TO THE SRI LANKA MUSLIMS, NOT THE SRI LANKAN GOVERNMENT..WE MUSLIMS SHOULD SEE THAT THE MONEY IS USED TO PUT UP ANOTHER PILGRIM CENTRE IN MAKKAH FOR US. I KNOW BROTHER SADIK, WHO IS A IS A GOOD MUSLIM HAVING SPENT HIS ENTIRE LIFE IN SAUDI, AND ONE OF THE FEW SRI LANKANS GRANTED SAUDI CITIZENSHIP.
HE IS AN HONOURABLE MAN AS COMPARED TO OUR “SO-CALLED LEADERS , I AM SORRY I MEAN DEALERS” AND OUR
“MUFTIS” AND POLITICIZED JEMIYATHUL ULEMA.
ALLAH SAVE US FROM THEM IS MY SINCERE PRAYER
im just after a Umrah.. looking at the construction going on around the grand masjid, there is no sight of finish.. it is just getting bigger and bigger by the day.. towers that was standing 20-30 floors above the ground are brought down in seconds.. its a major expansion.. SLGOV should get the compensation now, before it loses its trace.. and please try to help the tens of thousands of muslims who cannot afford the journey of Hajj with the compensated money..
good Idea!
take the money and give to racist Monks to put up Pansala in the place of Dhambulla Muslim Masjid.
My Personal opinion that the money should not give to SL government because all are frauds here in SL. Better to re invest in Makkah masjid extension.. If Saudi Authority send money to SL i’m 100% sure that these buggers will put all in their pocket.
ATTENTION MR.FOWZIE!!!!!!!!
I ONLY HOPE IT WILL NOT BE LIKE THE WORK OF OUR HAJ COMMITTEES OVER THE PAST THREE YEARS. REMEMBER YOU WILL HAVE TO ACCOUNT TO ALLAH.
THIS PROPERTY BELONGS TO THE MUSLIMS OF SRI LANKA AND
NOT THE GOVERNMENT.
COMPENSATION SHOULD BE UTILISED FOR THE PURCHASE OF A SIMILAR BUILDING, IN CLOSE PROXIMITY TO THE HARAM,SINCE SRI LANKANS ARE BEING RIPPED OFF BY MAKKAH HOTELIERS
SADEEK HAJIAR IS TRUSTWORTHY AND HONORABLE MAN, TO HANDLE THIS.
Typical Sri Lankan comments. Please understand that times have changed since a benevolent trust was allowed land ownership in makkah to the present times where the rules are stringent. The important factor is to ensure that the BENOVALENT trust is compensated market value and that the right trustees are appointed to manage the funds for the benifit of haajis.
This has nothing to do with the SL government nor its rogue ministers. Keep them out for the good of the Sri Lankan hajis