Red Sea Development Company CEO, John Pagano, said the giga-project needs the support of the private sector to achieve its goal in becoming a luxury tourism destination.
Speaking at the Future Investment Initiative 2019 in Riyadh, Pagano added that Red Sea Development is seeking a public private partnership (PPP) to proceed with the design, building and logistic operations.
He explained further that the project has the full support of the Public Investment Fund (PIF) and capital markets, nevertheless, he noted “we need the private sector participation, therefore we are partnering with hundreds of private companies who share our values.”
He added that the project is hiring people from local communities, noting that there is a new generation of tourism practitioners, and the company is currently training them.
“We are building 50 hotels across 20 islands, as well as a new international airport among others” he said, adding that the current investments value stands at SAR 2.5 billion.
Pagano said earlier that the Red Sea Development Co is seeking a loan of more than SAR 10 billion from a number of Saudi banks to finance tourism projects.
The Kingdom plans to develop resorts on 50 islands off the Red Sea coast, offering a nature reserve, coral reef diving and heritage sites.
Red Sea is one of three major projects backed by the PIF, along with the $500 billion NEOM economic zone and the Qiddiya entertainment project.
The Public Investment Fund (PIF) is organizing the third annual Future Investment Initiative 2019 (FII) themed ‘What is next for global business?’, under the patronage of Saudi Arabia’s King Salman, from October 29th to 31st 2019 in Riyadh.
FII aims to explore latest innovations, opportunities and challenges shaping the global investment landscape, as well as emerging businesses covering a range of sectors, including energy, banking, technology, transportation, entertainment, sports, and healthcare.
Many analysts and experts have previously stated that the Saudi Vision 2030 will help establish the Public Investment Fund as one of the leading Sovereign Wealth Funds on the global level.
Write to Christine El Cheikh at christine.elcheikh@argaamplus.com
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