Red Sea Development to Take Over Amaala

Saudi Arabia plans to combine two state-controlled developers, on the Red Sea coast, as it pushes ahead with opening up for more tourists.

“The Red Sea Development Co. will take over Amaala, both owned by the country’s Public Investment Fund (PIF) and building adjacent tourist destinations”, John Pagano, chief executive officer of both companies, said in an interview with Bloomberg on Monday.

Opening up to tourism is one of the ways Saudi Arabia intends to diversify its economy and cut reliance on oil revenues.

Its other ambitious projects include building an entertainment hub near the capital and a new city in the north-west, called NEOM.

The Red Sea projects are expected to house 16 hotels by 2023, with a capacity of about 3,000 rooms.

“In 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 added.

The partnerships are likely to be announced during the Kingdom’s Future Investment Initiative summit in October.

The Red Sea Development Company is a closed joint stock company, wholly owned by the Public Investment Fund of the Kingdom of Saudi Arabia, established to lead the development of the “Red Sea Project”.

In recognition of what Pagano, has achieved in launching the project, he was also appointed as CEO of Amala, another mega-tourism project aimed at attracting the wealthy.

In previous statements, Pagano explained the difference between the two projects, saying, “While our focus in the Red Sea is mainly on nature, eco-tourism and sustainability, the first phase of the development in Amaala will consist of 6 hotels and about 1,000 hotel rooms, and it is expected to be completed by the first quarter of 2024″.

The Red Sea Development Company (TRSDC) said its Red Sea Project is on track to welcome its first guests, by the end of 2022, when the international airport and the first hotels, are set to open.

“The first phase, which includes 16 hotels in total, will open by  the end of 2023” he pointed out.

Upon completion in 2030, The Red Sea Project 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 and leisure facilities.