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Red Sea Global Secures Financial Close on $522 Million Debt Financing with Riyad Bank

RSG said it has completed a $522 million financing agreement with Riyad Bank. SPA
RSG said it has completed a $522 million financing agreement with Riyad Bank. SPA
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Red Sea Global Secures Financial Close on $522 Million Debt Financing with Riyad Bank

RSG said it has completed a $522 million financing agreement with Riyad Bank. SPA
RSG said it has completed a $522 million financing agreement with Riyad Bank. SPA

Red Sea Global (RSG) said on Sunday that it has completed a SAR2 billion ($522 million) financing agreement with Riyad Bank.

According to a statement, the financing supports RSG's Joint Venture (JV) with Kingdom Holding Company (KHC), a prominent global investment company headquartered in Saudi Arabia, for the development of the highly anticipated Four Seasons Resort at The Red Sea destination.

"The Kingdom's tourism potential is truly limitless, and with our first two hotels now open, we are at the vanguard of putting Saudi Arabia on the global tourism map. Riyad Bank has been with us since our first debt financing deal in 2021, and we're honored to have them partner with us once again,” said RSG CEO John Pagano.

He also said that the Four Seasons Resort, situated on Shura Island, is set to be a luxury property offering 159 exquisite guest rooms, adding that Shura Island is part of the first phase of development, which will include 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 complex.

"RSG has an incredible responsibility to be an enabler of the Kingdom's Vision 2030 and added to this, it set its own incomparable ambitions to deliver development in a way that is responsible and regenerative,” said Riyad Bank CEO Nadir Al-Koraya.

“We believed in the vision its leadership presented back then at our first encounter, and last year, when The Red Sea welcomed its first guests, our faith was shown to be well-founded. We're privileged to once again have the opportunity to support one of the world's most ambitious developers."

In 2023, The Red Sea welcomed its first guests, and now two of its hotels are open. The Red Sea International Airport (RSI) has been receiving a regular schedule of flights since September 2023. Desert Rock and Shebara will welcome their first guests later this year, while Shura Island is on track to welcome guests in 2025.

Upon full completion in 2030, the destination 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 luxury marinas, golf courses, entertainment, and leisure facilities.

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Saudi Arabia to Host Multilateral Industrial Policy Forum

The Saudi flag. Asharq Al-Awsat
The Saudi flag. Asharq Al-Awsat
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Saudi Arabia to Host Multilateral Industrial Policy Forum

The Saudi flag. Asharq Al-Awsat
The Saudi flag. Asharq Al-Awsat

Saudi Arabia, in partnership with the United Nations Industrial Development Organization (UNIDO), will host the Multilateral Industrial Policy Forum (MIPF) in October, underscoring the Kingdom's significant industrial transformation, in line with Vision 2030, and aiming to expand the Saudi industrial base and solidify its position as a leading global industrial center.
Organized by the Ministry of Industry and Mineral Resources in Riyadh, the forum is yet another substantial industrial development initiative the Kingdom relentlessly takes.
By carrying out programs focused on innovation, diversification, and boosting of the industrial sectors, including 12 strategic sectors identified in the National Industrial Strategy, Saudi Arabia seeks to raise competitiveness and support its national economy.
Beyond the National Industrial Strategy, the Kingdom has invested in developing industrial infrastructure, such as industrial cities and special economic zones, and fostered international cooperation to facilitate transfer of knowledge and technology. The forum, in which global experts and decision makers participate, is an ideal platform to exchange expertise and set best practices in industrial policies.
Saudi Arabia aims to develop policies that are in line with international standards, thus increasing the global competitiveness of its industrial sector. By leading initiatives for sustainable industrial practices, promoting international cooperation, exchanging expertise, and adopting environmentally friendly technologies, the Kingdom seeks to enhance the flexibility of its supply chains, in line with the Global Supply Chain Resilience Initiative.
The industrial sector in Saudi Arabia witnessed significant developments in 2023, including announcing major investment opportunities in targeted sectors, issuing a license for the first Saudi-made electric car brand "Ceer", and opening the first electric vehicle manufacturing factory "Lucid". The Kingdom aims to produce over 300,000 cars annually by 2030.
Attracting private sector investments is crucial to achieving the goals of the National Industrial Strategy. The industrial sector focuses on enhancing integration among various sectors and their supply chains, developing infrastructure, encouraging joint investments, promoting local content, and empowering national companies through policies, financing, and training.
In July 2022, the Ministry of Industry and Mineral Resources launched the Future Factories Program, which aims to transform 4,000 factories from labor-intensive models to efficient, automated operations utilizing advanced industrial solutions. This initiative seeks to enhance competitiveness, improve product quality, and increase exports of Saudi non-oil products.
The ministry has also made strides in improving the regulatory and legislative environment for the industrial sector, creating an environment conducive to investments and fair competition.
The ministry's goals for 2024 and 2025 include attracting investments in targeted industrial sectors, reaching a total investment volume of SAR451 billion, adding 1,500 products to the mandatory local content list, increasing the industrial sector's contribution to non-oil GDP to SAR412 billion, and boosting non-oil exports to over SAR300 billion. Moreover, the ministry aims to launch the industrial sector governance initiative to stimulate integration and concerted efforts among relevant stakeholders.
The second edition of the Multilateral Industrial Policy Forum, hosted by Riyadh under the theme "Transforming Challenges into Sustainable Solutions through Industrial Policies", will bring together some 3,000 industry leaders from around the world, including decision makers, CEOs, industry specialists, and people interested in developing industrial policies.