عربي English Türkçe اردو فارسى
Logo
Latest News
Business

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
TT
TT

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.

Most Viewed

 
 
Business

US Job Growth Surges in September, Unemployment Rate Falls to 4.1%

A woman enters a store next to a sign advertising job openings at Times Square in New York City, New York, US, August 6, 2021. REUTERS/Eduardo Munoz/File Photo
A woman enters a store next to a sign advertising job openings at Times Square in New York City, New York, US, August 6, 2021. REUTERS/Eduardo Munoz/File Photo
TT
TT

US Job Growth Surges in September, Unemployment Rate Falls to 4.1%

A woman enters a store next to a sign advertising job openings at Times Square in New York City, New York, US, August 6, 2021. REUTERS/Eduardo Munoz/File Photo
A woman enters a store next to a sign advertising job openings at Times Square in New York City, New York, US, August 6, 2021. REUTERS/Eduardo Munoz/File Photo

US job growth accelerated in September and the unemployment slipped to 4.1%, further reducing the need for the Federal Reserve to maintain large interest rate cuts at its remaining two meetings this year.
Nonfarm payrolls increased by 254,000 jobs last month after rising by an upwardly revised 159,000 in August, the Labor Department's Bureau of Labor Statistics said in its closely watched employment report on Friday.
Economists polled by Reuters had forecast payrolls rising by 140,000 positions after advancing by a previously reported 142,000 in August.
The initial payrolls count for August has typically been revised higher over the past decade. Estimates for September's job gains ranged from 70,000 to 220,000.
The US labor market slowdown is being driven by tepid hiring against the backdrop of increased labor supply stemming mostly from a rise in immigration. Layoffs have remained low, which is underpinning the economy through solid consumer spending.
Average hourly earnings rose 0.4% after gaining 0.5% in August. Wages increased 4% year-on-year after climbing 3.9% in August.
The US unemployment rate dropped from 4.2% in August. It has jumped from 3.4% in April 2023, in part boosted by the 16-24 age cohort and rise in temporary layoffs during the annual automobile plant shutdowns in July.
The US Federal Reserve's policy setting committee kicked off its policy easing cycle with an unusually large half-percentage-point rate cut last month and Fed Chair Jerome Powell emphasized growing concerns over the health of the labor market.
While the labor market has taken a step back, annual benchmark revisions to national accounts data last week showed the economy in a much better shape than previously estimated, with upgrades to growth, income, savings and corporate profits.
This improved economic backdrop was acknowledged by Powell this week when he pushed back against investors' expectations for another half-percentage-point rate cut in November, saying “this is not a committee that feels like it is in a hurry to cut rates quickly.”
The Fed hiked rates by 525 basis points in 2022 and 2023, and delivered its first rate cut since 2020 last month. Its policy rate is currently set in the 4.75%-5.00% band.
Early on Friday, financial markets saw a roughly 71.5% chance of a quarter-point rate reduction in November, CME's FedWatch tool showed. The odds of a 50 basis points cut were around 28.5%.