Red Sea Global Achieves Commercial Close on SAR 1 billion Al Mutlaq Group Joint Venture Debt Financing
- Commercial close included SAR 1.081 billion (USD 288 million) green debt financing from Gulf International Bank Saudi Arabia, the fifth Saudi bank to support Red Sea Global
- Joint Venture Agreement with Al Mutlaq Group signed in July 2022 for Jumeirah property
Riyadh, (24 January, 2023): Red Sea Global (RSG), the multi-project developer behind the world’s most ambitious regenerative tourism destinations, The Red Sea and Amaala, has achieved commercial close on a financing agreement to support its Joint Venture (JV) with Almutlaq Real Estate Investment Co. (AREIC), a subsidiary of the Al Mutlaq Group (AMG).
The SAR 1.081 billion (USD 288 million) green financing was provided by Gulf International Bank Saudi Arabia (GIB).
The initial joint venture with AREIC was signed in July 2022 and valued at SAR 1.6 billion, for the development of Jumeirah The Red Sea. The resort is a 159-key luxury property situated on The Red Sea destination’s hub island, Shura. 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.
Tariq Almutlaq, Chairman of AREIC, said: “We’re delighted to achieve commercial close on our joint venture so soon after signing the agreement and it is testament to Red Sea Global’s best-in-class management team that it has been able to happen. Already progress is being made at pace to bring the destination to life and we are excited to continue helping Red Sea Global achieve its vision.”
Abdulaziz Al-Helaissi, CEO of GIB, said: “Red Sea Global has made an ambitious commitment to being conservation-positive, supported by its partnership with King Abdullah University of Science and Technology. GIB is proud to enable this activity through the provision of green finance, and we look forward to seeing the positive impacts generated on sustainable development goals.”
GIB is the fifth Saudi bank to support RSG in the debt capital markets, following Banque Saudi Fransi, Riyad Bank, Saudi British Bank and Saudi National Bank’s involvement with RSG’s green loan closed in 2022. Red Sea Global achieved financial close on the first-ever Riyal denominated Green Financing with its SAR 14.120 billion (USD 3.76 billion) facility.
“Our latest commercial close marks another milestone for our project delivery team as we build on our strong reputation and attract more outside investment. It’s clear the investment community is enticed by our flagship projects and Vision 2030 and we expect more interest from those focused on ESG who recognize our full potential,” added Pagano.
The Red Sea is on track to welcome first guests in 2023 when the initial hotels will open. Upon full completion in 2030, The Red Sea 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 an international airport, luxury marinas, golf courses, entertainment, and leisure facilities.
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.
RSG is a global multi-project developer, seeking to lead the world towards a more sustainable future, showing how responsible and regenerative development can uplift communities, drive economies, and enhance the environment. The protection of natural capital is central to all development decisions, as the organization seeks to create a better future for all.
A cornerstone of Saudi Arabia’s Vision 2030 ambition to diversify its economy, RSG is playing a key role in transforming the nation, by creating exciting opportunities for young Saudi talent and the private sector, as it develops built assets and destinations across multiple sectors that make a positive impact for people and planet.
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.
The program will last for two years and three months, after which students will obtain an intermediate diploma from Tabuk University accredited by Hong Kong Polytechnic University. This program is designed to prepare students for future jobs by providing a curriculum that combines theoretical knowledge with practical application.
Upon successful completion, RSG and its partners will seek to provide job opportunities to suitably qualified graduates.