- The debt finance ties to a joint venture with Kingdom Holding Company for the development of Four Seasons Resort at The Red Sea.
Riyadh, 12TH Feb 2024: Red Sea Global (RSG), the developer behind the regenerative tourism destinations The Red Sea and Amaala, has announced the successful completion of a SAR 2 billion ($533 million) financing agreement with Riyad Bank.
The Public Investment Fund (PIF) of Saudi Arabia wholly owns Red Sea Global, a closed joint-stock company.
The financing supports RSG’s Joint Venture (JV) with Kingdom Holding Company (KHC), a prominent global investment company headquartered in Saudi Arabia, for the development of the Four Seasons Resort at The Red Sea destination. The initial JV was signed in October 2023.
Red Sea Global and Riyad Bank Forge Partnership for Saudi Tourism Development
“The Kingdom’s tourism potential is truly limitless and with our first two hotels now open, we are at the vanguard of putting Saudi Arabia on the global tourism map. This deal signifies the confidence of the private sector in the country, its people and in Red Sea Global.
Riyad Bank has been with us since our first debt financing deal in 2021 and we’re honored to have them partner with us once again,” said John Pagano, Group CEO at Red Sea Global.
The Four Seasons Resort at The Red Sea destination, situated on Shura Island, poised to offer 159 exquisite guest rooms, sets the standard for unparalleled luxury properties.
Shura Island is part of the first phase of development, which will include 11 luxury, premium, and lifestyle hotels and resorts, residential units, a championship golf course, a 118-berth marina, and a comprehensive retail, dining, and entertainment complex.
Nadir Sami Al-Koraya, CEO of Riyad Bank, said: “Red Sea Global has an incredible responsibility to be an enabler of the Kingdom’s Vision 2030 and added to this, it set its incomparable ambitions to deliver development in a way that is responsible and regenerative.
We believed in the vision its leadership presented back then at our first encounter and last year, when The Red Sea welcomed its first guests, our faith was shown to be well-founded. We’re privileged to once again have the opportunity to support one of the world’s most ambitious developers.”
Expansion Milestones and Future Prospects at The Red Sea: From Inaugural Guests to Ongoing Development
In 2023, The Red Sea welcomed its first guests and now two of its hotels are open. The Red Sea International Airport (RSI) has been receiving a regular schedule of flights since September 2023.
Desert Rock and Shebara will welcome their first guests later this year, while Shura Island is on track to welcome guests in 2025.
Upon full completion in 2030, the destination will comprise 50 resorts, 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 luxury marinas, golf courses, entertainment, F&B, and leisure facilities.
