Saudi fund inks deal to set up SAR 100 mln private equity fund for tourism firms

Agreement signing ceremony

The Tourism Development Fund signed an agreement with Derayah Financial Co. to establish a SAR 100 million close-ended private equity fund, specialized in investment in small and medium tourism companies within the Kingdom.

The new investment fund aims to invest in promising tourism opportunities in the Kingdom's targeted touristic areas, according to Saudi Press Agency (SPA).

The fund's targeted tourism segments include accommodation, experiences and tourism activities, entertainment and adventure tourism, restaurants and cafés within tourist destinations, travel and tourism services, as well as retail sale of tourism goods, in line with the objectives of the National Tourism Strategy.

Saudi Arabia’s first-of-its-kind fund will contribute capital to support the expansion of SMEs in the tourism sector within the Kingdom.

It will also participate in further diversifying investments in the sector by introducing new products in partnership with the private sector and investing in promising tourism companies that do not receive proper funding, in a way that serves investment in tourism activities that enrich the tourist experience in the Kingdom.