TRSDC signs over SAR 1.5 bln contract with Al Mutlaq Group to develop ‘Jumeirah The Red Sea’

The Red Sea Development Company (TRSDC), the developer behind the world’s most ambitious regenerative tourism project, entered into a joint venture (JV) agreement with Almutlaq Real Estate Investment Co. (AREIC), a subsidiary of 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, a 118-berth marina, and a comprehensive retail, dining, and entertainment offering.

“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,” said John Pagano, CEO of TRSDC.

AREIC Chairman Tariq Almutlaq said: “The Red Sea is achieving its vision. The destination is coming to life, and we look forward to welcoming our first guests in 2024. While funding for Phase One of The Red Sea Project is secured and in place.”

The Saudi developer stated that 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.

The announcement follows TRSDC achieving financial close on its SAR 14.12 billion green financing earlier this year with four leading Saudi banks.

Moreover, TRSDC and Amaala have awarded over 1,000 contracts worth in excess of SAR 25 billion. 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.