The CEO of the Red Sea Development Company and Amaala project, John Pagano, said that Saudi Arabia plans to raise up to ten billion riyals ($ 2.67 billion) next year in order to Amala projectOne of its tourism projects on the Red Sea coast.
Amaala resort is being built on the northwestern coast of the Kingdom on the Red Sea, in addition to the “Red Sea” project, as part of Saudi efforts to diversify the country’s economy by promoting new sectors such as tourism. Both projects are environmentally friendly and will rely on renewable energy sources.
The expected “green” funding for the Amaala project will come after a larger loan obtained earlier this year to finance the Red Sea project.
“We will go to the market, perhaps sometime next year, to finance the first phase of the project,” Pagano told Reuters on Tuesday.
He expected the loan to range between 5 and 10 billion riyals, which comes after 14 billion riyals arranged by the company this year. “I expect it to be towards the lower end of that range,” he said.
The loan for the Red Sea project came from four Saudi banks to finance the construction of 16 new hotels. Pagano said Amala’s financing would be for the construction of nine hotels in the first phase, saying the facilities were slated to open in 2024.
Amaala and the Red Sea Project, which are wholly owned by the Saudi Public Investment Fund, are likely to merge into the Red Sea Group by the end of this year.
“Bringing the two institutions together is a natural progression,” Pagano said.
He added that once the two projects are completed, their assets may be pooled into a real estate investment fund backed by hotels and may be listed on the Saudi Stock Exchange as a way to attract a diverse group of investors.
He said, “We may see that soon, perhaps in 2024 or 2025. We need to open hotels and we need to start work and achieve a reasonable amount of stability so that we can get the right liquidity.”
He expected the two projects to provide 120,000 job opportunities by 2030, including 70,000 direct and 50,000 indirect.