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Saudi Arabia is targeting up to SAR 75 billion ($20 billion) of investments through 2035 for a planned landmark tourism destination and will hold a global investor roadshow before the end of the year, the head of the project told Reuters.
Amr Madani, chief executive of the Royal Commission for AlUla, said in an interview this week he expects targeted investments to eventually generate 35,000 jobs and contribute a combined SAR 120 billion ($32 billion) to gross domestic product over the next 17 years.
“The bulk of that in the beginning will be construction-led but at steady state it will be tourism-led,” he said. This would be alongside secondary industries like sustainable agriculture, heritage preservation and film production.
The government, along with a French cultural partnership, has already begun financing infrastructure at AlUla.
“We’d rather inject zero from public money, but the reality is we need to kickstart the investment. So we don’t know what that number is but we’re committed to keep investing until we get to the right conditions where funds jump in,” Madani said.
Various investment vehicles will be considered, including joint ventures and long leases, he added.
The authorities eventually want to attract up to 2 million visitors annually to AlUla, but they are starting with about 1,000 hotel rooms plus desert camps and a three month visitor season called “Winter at Tantoura” that just concluded its first iteration.
“We were overwhelmed, not only by those who came, but by people who saw the pictures and wanted to come,” said Madani. “There is a lot of excitement around the world.”
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