Saudi commercial banks’ June deposits rose 8.7%, their highest level in 16 months
RIYADH: Almutlaq Real Estate Investment Co., the real estate subsidiary of Al Mutlaq Group, has great confidence in The Red Sea Project as it plans to continue its collaboration with The Red Sea Development Co., a senior official said.
In an exclusive interview with Arab News, Abdullah Almazrou, CEO of AREIC, said the group’s association with TRSP would benefit the company and enrich the hospitality sector in Saudi Arabia.
On July 3, AREIC signed a joint venture agreement worth SR1.5 billion ($400 million) with TRSDC. Under the agreement, the two companies will develop the Jumeirah Red Sea, a 159-key luxury resort located on the central island of the Red Sea destination, Shoura, which is currently under construction and scheduled to open in early 2024.
The strategic partnership also marked the first JV established by TRSDC.
“Our partnership with the Red Sea will not stop there. We have the firm conviction to develop ourselves more and more. I cannot be specific because our belief in such projects might go beyond expectations,” Almazrou told Arab News.
Almazrou also praised Crown Prince Mohammed bin Salman for transforming the Kingdom into an investment-friendly nation and added that the TRSP was finalized after thorough analysis.
“We are looking at the opportunities. Our Crown Prince’s vision for choosing this particular location has been the subject of much analysis. As we all know, our country is rich in opportunity, from geography to environment, locations, economy and human capabilities,” he added.
Asked about the timeline to make the AREIC project profitable in the TRSP, he said: “For such projects, it will take some time because it is not only our project, it is the whole project of the sea. Red. Thus, our faith in the management of the Red Sea and decision-making being brought to the fore, we are convinced that such a project will be beneficial to us.
After signing the joint venture agreement, John Pagano, Group CEO of TRSDC, said the investment “strengthens private sector alignment with our commitment to regenerative tourism and sustainable development.”
Almazrou spoke about the construction progress of the AREIC project in TRSP and said, “Now they are almost on the final stage of the infrastructure. And certainly, the next will be the building itself. We expect it to be completed by the second half of 2024.”
TRSP, currently in the first phase of development, will include 11 luxury, upscale and lifestyle hotels and resorts, residential units, a championship golf course, a 118-berth marina and a total supply of retail, catering and entertainment.
During the interview, Almazrou noted that the real estate sector in the Kingdom has grown very rapidly over the past two years.
“Huge investments are being made by international developers in the Kingdom. I don’t think these huge investments will be made without such strong belief and confidence in our economy and our future growth,” he added. He further said that Al Mutlaq Group has a portfolio of around 20 locations in the Kingdom, which includes a shopping mall south of Riyadh. He noted that Al Mutlaq Group’s operations are diversified across the hospitality, retail and housing sectors.
Almazrou also added that TRSP trains many Saudi talents. He said projects like TRSP enrich job opportunities in the Kingdom.
“We strongly believe in the young generation of Saudi Arabia who devote time to their education, inside the Kingdom or outside,” he noted.