Friday 22 October 2021

Saudi Arabia set to merge PIF-backed developers TRSDC, Amaala

RIYADH, September 21, 2021

Saudi Arabia plans to combine two major development firms owned by the kingdom’s Public Investment Fund (PIF) on the Red Sea coast - Amaala and The Red Sea Development Company (TRSDC) - as it pushes ahead with opening up the kingdom for more tourists, said a report, citing a top official. 
TRSDC, the top Saudi developer behind the world's most ambitious regenerative tourism project, will take over Amaala, stated John Pagano, the CEO of of both companies, in an interview with Bloomberg, held on the sidelines of the Arabian and African Hospitality Investment Conference (AHIC).
Amaala is an ultra-luxury destination located along Saudi Arabia's northwestern coastline. Set in the Prince Mohammad bin Salman Natural Reserve across three unique communities, the 4,155-sq-km year-round destination will include 2,800 hotel keys and more than 900 residential villas, apartments and estate homes, alongside 200 high-end retail establishments, fine dining, wellness and recreational facilities.
Its trio of communities – Triple Bay, The Coastal Development and The Island – will represent three different sets of experiences for visitors. 
Opening up to tourism is one of the ways Saudi Arabia intends to diversify its economy and cut its reliance on oil, noted Pagano. 
Its other ambitious projects include an entertainment hub near the capital and a new city in the north-west called Neom that’s expected to cost $500 billion to build, he stated.
During the Bloomberg interview, Pagano emphasised how the project remains on track despite the challenges of the pandemic. 
"We’ve awarded 600+ contracts worth over SR17 billion and we’re committing SR1 billion a month as we award the remaining phase one contracts," he noted.
The Red Sea Project has already passed numerous significant milestones and work is on track to welcome the first guests next year when the international airport and the first hotels will open. All 16 hotels planned in Phase I will be open by the end of 2023.  
Upon completion in 2030, the mega project will boast 50 hotels, offering up to 8,000 hotel rooms and more than 1,000 residential properties across 22 islands and six inland sites. The destination will also include a luxury marina, entertainment and leisure facilities.
"With regard to the various hotel brands, we are hopefully going to sign a number of deals over the coming days," said Pagano. "All the major players are very keen to be part of the Red Sea," he revealed.
The partnerships are likely to be announced during the kingdom’s Future Investment Initiative summit in October, he added.


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