Saudi Red Sea tourism project signs $400m joint venture pact for luxury resort
The Saudi company The Red Sea Development Company (TRSDC), developer of The Red Sea project, announced on Monday that it has concluded its first joint venture with local investor Almutlaq Real Estate Investment Company (AREIC), a subsidiary of the Al Mutlaq group. (AMG) to develop a 159-hotel luxury resort at Jumeirah The Red Sea.
The joint venture with AREIC, valued at more than 1.5 billion Saudi riyals ($400 million), is TRSDC’s first partnership with the private sector, the Public Investment Fund-owned company said in a press release. .
Jumeirah The Red Sea is located on the central island of the Red Sea destination, Shura, which is scheduled to open in 2024, the statement said, adding that it will include 11 luxury, high-end hotels and resorts. range and lifestyle, residential units, a championship golf course, a 118-berth marina and a comprehensive retail, dining and entertainment offering.
TRSDC said it was in parallel discussions with several other investors in a similar framework to invest in the Red Sea Project’s commercial assets, including hotels and resorts, leisure and retail experiences and restoration.
“We have been studying Giga projects for some time and the Red Sea is realizing its vision. The destination is coming to life and we look forward to welcoming our first guests in 2024,” said Tariq Almutlaq, President of AREIC.
In a separate statement, global law firm Ashurst said it advised AMG on the TRSDC-ARIEC partnership.
Partner Stuart James said the transaction reflects investors’ strong appetite for sustainable projects “and is indicative of the world-class investment opportunities for private capital in the Red Sea Project”.
Earlier this year, TRSDC had reached financial close on its 14.120 billion Saudi Riyals ($3.76 billion) green financing for Phase 1 of the Red Sea Project.
(Writing by SA Kader; Editing by Anoop Menon)