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Red Sea Global hosts procurement roadshows in Seoul and Tokyo to connect with key private sector players

Published

19 Sep 2023

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Red Sea Global hosts procurement roadshows in Seoul and Tokyo to connect with key private sector players

Published

19 Sep 2023

Share

-    Red Sea Global hosts two roadshows to forge new partnerships with notable contractors, consultants and suppliers.
-    The roadshows formed part of a broader schedule of in-market events to meet the demands of Red Sea Global’s expanding tourism development portfolio.


Riyadh, 19 September, 2023: Red Sea Global (RSG), the multi-project developer behind the world's most ambitious regenerative tourism destinations, The Red Sea and Amaala, hosted two successful procurement roadshows in Seoul and Tokyo this week. The events brought together key players across the private sector in both markets, including suppliers, consultants and contractors to spotlight collaboration opportunities with RSG.

Organized in partnership with global data provider MEED, the roadshows offered invaluable insights into the opportunities available for private sector companies within Saudi Arabia.

 

“There has never been a better time, or an easier time, to enter the Saudi market and take a slice of the $880 billion project pipeline. This year to date in excess of $45 billion has already been awarded in contracts and the country is on track to reach its highest total value of contracts awarded on record”,
said Ed James, Head of Content at MEED and event moderator.

 

“I’ve been looking at projects in the Middle East for the last two decades and I’ve never seen anything like this. The fact that the renders are coming to life and people will be able to stay in hotels this year is evidence of Saudi meaning business in bringing its Vision 2030 to life.” he added.


With a future project pipeline worth more than $1.3 trillion, Saudi is the largest market in the Middle East region, comprising more than half of the GCC’s $2.3 trillion projects market.

During the roadshows, RSG outlined its unwavering commitment to sustainability, as well as the regenerative approach it is taking to developing its flagship destinations. With the company dedicated to working with forward-thinking organizations, the event aimed to facilitate collaboration with businesses keen to drive innovation in their respective fields and create solutions to some of the world’s biggest challenges. 

 

“Seoul and Tokyo are home to a wealth of businesses with unmatched expertise, skills and capabilities. Our events not only provided platforms to showcase the abundance of opportunities for companies considering entering the Saudi market, but also served to demonstrate the value of partnering with RSG, shedding light on our ambitions and successes to date. We’ve already awarded more than $200 million in contracts to companies met at our roadshow events this year,” said Ben Edwards, Group Head of Cost, Commercial and Procurement at Red Sea Global. 


RSG’s destinations, which are projected to contribute 33 billion riyals annually to Saudi Arabia's economy upon completion and create 120,000 jobs combined, will be 100% powered by renewable energy, with five solar farms already built at The Red Sea to keep the destination off grid.

While RSG aims to deliver a 30% net conservation benefit by 2040, their commitment goes beyond protecting and enhancing the surrounding environment and extends to actively supporting local communities too. 

 

Mohammed AlFardan, Executive Director of Procurement at Red Sea Global, said: "At RSG, we are determined to work with like-minded companies that understand the critical need to honor the environment and the locals living in the areas that they operate. Our roadshows served as an opportunity to not only highlight how our partners can help us create luxury experiences for our guests, but also contribute to our mission to transform the travel and hospitality sector for the betterment of planet and people.”

 

To date, RSG has awarded nearly 6,200 contracts worth over SAR 47.5 billion (USD 12.7 billion) across its two destinations. “It’s important for everyone in the supply chain to register with us, because we typically breakdown our construction packages into 20 subcontract packages as part of our construction management approach which is quite unusual in the Middle East. Likewise, we made a strategic decision to not ask for tender fees or bonds which was well received by our partners”, added Edwards.

 

Hussein Hamdy, Technical Director and Board Member was in attendance at the event in Tokyo, representing BEC Arabia who are currently engaged in the delivery of the Staff Village at the AMAALA destination and which has already completed on around 120 projects worth some 9.4 billion riyals in total in the Kingdom.

“We’re 73 days ahead of our timelines due to the support of the RSG team without having to impact our health and safety record, or quality of output. Housing on site is organized through RSG as part of the contract which also ensures worker welfare remains a priority,” he explained.

“The registration and tender process has been very simple with RSG, with clear RFPs shared that match our capabilities as documented in the SAP Ariba system. Likewise, payments have been regular and received in a timely manner.”


At the event hosted in Seoul, Saudi Fransi Bank were represented in a fireside chat by Mohamed Al-Nehfawi, Regional Coverage Manager. Nehfawi explained: “It’s an honor to be here representing the Saudi Arabia banking sector in South Korea, which has played such a significant role in the Saudi market over the years.

“To help drive Vision 2030 programs, Saudi has launched critical initiatives to attract international investors and partners to the Kingdom, eliminating legacy bureaucracy and driving efficiencies in the administration of elements like finance, legal requirements and even obtaining visas. These factors provide a new advantage to those organizations who want to participate in new and exciting opportunities like those presented by Red Sea Global today.”

RSG is preparing to welcome the first guests to The Red Sea, this year to the first three hotels and first domestic flights will arrive at the new purpose-built Red Sea International airport imminently. Upon full completion in 2030, the destination will have 50 hotels with up to 8,000 hotel rooms as well as residential properties.


Amaala, due to open in 2025, will offer over 3,000 hotel rooms and 1,200 luxury apartments and villas. Guests will be able to enjoy features including marinas, golf courses and high-end retail, as well as fine dining, wellness and leisure facilities. 

For more information about Red Sea Global or to pre-register your organization to receive upcoming tenders, please visit the website.

About Red Sea Global

Red Sea Global (RSG - www.redseaglobal.com) is a closed joint-stock company wholly owned by the Public Investment Fund (PIF) of Saudi Arabia. It is a vertically integrated real estate developer with a diverse portfolio across tourism, residential, experiences, infrastructure, transport, healthcare, and services. This includes the luxury regenerative tourism destinations The Red Sea, which began welcoming guests in 2023, and AMAALA, which remains on track to welcome first guests in 2025. A third destination, Thuwal Private Retreat, will open this year, and RSG has also been entrusted with refurbishment works at Al Wajh Airport, focused on upgrading the existing terminal and infrastructure, and building a new international terminal. RSG is a cornerstone of Saudi Arabia’s ambition to diversify its economy. Across its growing portfolio of destinations, subsidiaries, and businesses, RSG seeks to lead the world towards a more sustainable future, showing how responsible development can uplift communities, drive economies, and enhance the environment.

RSG is the visionary company behind some of the world’s most ambitious development ventures, including luxury regenerative tourism destinations such as The Red Sea and AMAALA.

Across its portfolio, RSG leverages the most innovative concepts, strategies, and technologies to deliver projects that actively enhance the wellbeing of customers, communities, and environments.

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