Red Sea Global Announces First Joint Venture Agreement with Al Mutlaq Group for Red Sea project
- RSG confirms its first Joint Venture investment, valued at over SAR 1.5 billion, as investor confidence grows
Riyadh, (03 July 2022): Red Sea Global (Formerly known as TRSDC), the developer behind the world’s most ambitious regenerative tourism projects, The Red Sea and Amaala, has announced that it has entered into a Joint Venture (JV) agreement with Almutlaq Real Estate Investment Co. (AREIC), a subsidiary of the Al Mutlaq Group (AMG).
Under the agreement, valued at over SAR 1.5 billion, the two companies will develop Jumeirah The Red Sea, a 159-key luxury resort situated on The Red Sea destination’s hub island, Shura, currently under construction and 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 Joint Venture established by RSG and demonstrates the private sectors confidence in the future success of the Red Sea destination and their willingness to be part of it.
This Joint Venture 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,” he added.
“We are extremely pleased to partner with RSG 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,” said Tariq Almutlaq, Chairman of AREIC.
While funding for phase one of The Red Sea Project is secured and in place, the joint venture with AREIC highlights the strong interest and appetite from the private sector to participate and invest in Vision 2030. RSG 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. Moreover, AMAALA and additional soon-to-be-announced projects in the developer’s expanding portfolio bring with them additional opportunities for investors.
“The success of our project delivery team is speaking volumes, building our reputation in the market as investors see tangible progress being made and our destination coming to life. The investment community has strong appetite and interest in our project, and we anticipate the announcement of additional joint ventures. We are attracting an abundance of third-party investment interest, particularly those focused on ESG who are confident that this is an exciting opportunity and one that they do not want to miss out on,” said Jay Rosen, Chief Financial Officer at RSG.
The announcement follows RSG achieving Financial Close on its SAR 14.120 billion (USD 3.76 billion) Green Financing earlier this year with four leading Saudi banks (Banque Saudi Fransi, Riyad Bank, Saudi British Bank, and Saudi National Bank). As the first-ever Riyal denominated green financing, RSG was acknowledged with an award for Project Finance Deal of Year in the Capital Markets Saudi Arabia Awards 2021 plus the Best New Green Loan Financing Project Award at the International Finance Awards 2022.
The Red Sea Project has demonstrated significant progress on the ground, with Phase One now more than 50 percent complete and several key assets already fully operational, including a four-star management hotel, on-site offices, and the largest landscape nursery in the region.
RSG and AMAALA have awarded over 1000 contracts worth in excess of 25 billion riyals. Work is on track to welcome the first guests in early 2023, when the first hotels will open, with the balance of phase one set to complete by early 2024.
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 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.