The Red Sea Development Company (TRSDC) and Almutlaq Real Estate Investment. Co have joined hands in a $400 million deal to develop a magnificent luxury resort on the Red Sea as a part of their significant tourism projects.
The Almutlaq Real Estate Investment Co. (AREIC), a division of the Al Mutlaq Group, and The Red Sea Development Company (TRSDC), the company driving the largest regenerative tourism initiative in the world, have engaged in a joint venture partnership recently.
According to the agreement, the two companies will come together to develop a 159-key luxury resort — Jumeirah, The Red Sea. It will be established on the Red Sea’s hub island, Shura. The deal, which is worth over SAR 1.5 billion (USD 400 million), will steer the Red Sea Project initiated by the Saudi government. The luxury resort is now under development and is scheduled to open to the public in the coming two years. A golf course, more than a hundred-berth marina, residential apartments, extensive shopping, eating, and entertainment centers will be there on Shura Island as components of the first phase of development for the Red Sea Project. The strategic collaboration, the first Joint Venture for TRSDC, shows the business sector’s belief in transforming the Red Sea into a new tourist destination.
Jumeirah, The Red Sea is a significant opening for Saudi Arabia’s Red Sea Project. It is a part of the first wave of hotels to open along the giga-project. The Jumeirah team is sure that it understands the functioning of the market as the Dubai-based business starts to develop hotels in Saudi Arabia.
The joint venture
This joint venture investment furthered the private sector’s commitment to sustainable development and regenerative tourism. This agreement also boosts the Kingdom’s goals of Vision 2030 to diversify economic growth prospects.
The joint venture with AREIC illustrates the considerable willingness of the business sector to engage in and invest in Vision 2030, even though finance for phase one of The Red Sea Project is already secured and in place. In a similar framework, TRSDC is in simultaneous conversations with several many other companies about investing in Saudi’s most ambitious, the Red Sea Project. It wants to collaborate with these companies to invest in commercial assets, such as its hotels and resorts, leisure activities, and retail and eating establishments. Additionally, the developer’s increasing portfolio includes AMAALA and other projects that will soon be launched, providing new prospects for investors.
As the first-ever green financing in Riyals, TRSDC was recognized with two awards — the Best New Green Loan Financing Project Award at the International Finance Awards 2022 and the Project Finance Deal of the Year Award at the Capital Markets Saudi Arabia Awards in 2021.
The Red Sea Project has made considerable strides on the ground, with Phase One now more than halfway finished and a number of crucial assets, including corporations and offices, a four-star hotel, and the biggest landscape nursery in the area, already fully functioning.
The Red Sea Project will have 50 resorts when it is finished in 2030, delivering more than a thousand residential homes and hotel rooms across 20+ islands and around six inland places. The location will also have a luxury marina, golf course, entertainment venues, and an international airport.
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