SAUDI ARABIA. The Red Sea Development Company (TRSDC), the developer behind what is billed as the world’s most ambitious regenerative tourism project, has entered into a joint venture agreement with Almutlaq Real Estate Investment Co. (AREIC), a subsidiary of the Al Mutlaq Group.
The agreement is valued at over SAR1.5 billion (US$399 million). It will see the two companies develop Jumeirah The Red Sea, a spectacular 159-key luxury resort on The Red Sea destination’s hub island, Shura. Currently under construction, it is expected to open in early 2024.
Shura Island forms part of the first phase of development, and will comprise 11 luxury, premium and lifestyle hotels and resorts, residential units, a championship golf course, 118-berth marina and a comprehensive retail, dining, and entertainment offering.
The strategic partnership marks the first JV established by TRSDC, which it said demonstrates the private sector’s confidence in the future success of the Red Sea destination.
TRSDC CEO John Pagano said: “We are delighted to partner with Al Mutlaq Group, a prominent global investment family group in Riyadh. The formation of a joint venture with their subsidiary, AREIC, demonstrates growing interest from the investment community to participate in our journey and is an encouraging reflection of their belief in not only our project but the wider tourism opportunity in the Kingdom.
“This investment reinforces the private sector’s alignment with our commitment to regenerative tourism and sustainable development. Our project naturally lends itself to promising business opportunities, with the ability to leverage the Kingdom’s key strategic assets, and drive economic growth and diversification as outlined by Vision 2030.”
AREIC Chairman Tariq Almutlaq said: “We are extremely pleased to partner with TRSDC and its best-in-class management team on this exciting and compelling project. We have been studying the giga-projects for some time, and the Red Sea is achieving its vision. The destination is coming to life, and we look forward to welcoming our first guests in 2024.”
TRSDC said it is in parallel discussions with several other investors under a similar framework to invest in The Red Sea Project’s commercial assets, including hotels and resorts, leisure, and retail and dining experiences.
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