A 1.6m sq m (17m sq ft) “pilgrim city” will be built in Saudi Arabia with modern facilities to house 200,000 Muslims who travel to Madinah for Haj and Umrah, Arab News has reported.

The new city will include a number of hotels and furnished apartments to accommodate the 200,000 pilgrim visitors.

Located near the Prophet’s Mosque, the project will be financied by state-owned Public Investment Fund.

Mohammed Badahdah, assistant secretary-general of the World Assembly of Muslim Youth said: “Such a city was required as the buildings surrounding the Prophet’s Mosque will not be able to house the growing number of pilgrims.

Badahdah added that hotel rooms in the city should be made available at affordable prices. He said five-star hotels should not charge pilgrims high prices as they do not provide them with same services of their counterparts in other places.