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NEOM Unveils 'Magna' Global Project on Gulf of Aqaba Featuring 12 Luxury Tourism Destinations

Magna is situated on the stunning Gulf of Aqaba coastline. (NEOM)
Magna is situated on the stunning Gulf of Aqaba coastline. (NEOM)
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NEOM Unveils 'Magna' Global Project on Gulf of Aqaba Featuring 12 Luxury Tourism Destinations

Magna is situated on the stunning Gulf of Aqaba coastline. (NEOM)
Magna is situated on the stunning Gulf of Aqaba coastline. (NEOM)

The Board of Directors of NEOM revealed the development of Magna, its luxury lifestyle coastal destination.

Part of NEOM's regional sustainable tourism portfolio, Magna is situated on the stunning Gulf of Aqaba coastline and comprises the recently announced premier destinations of Leyja, Epicon, Siranna, Utamo, Norlana, Aquellum, Zardun, Xaynor, Elanan, Gidori, Treyam, and Jaumur, said NEOM in a statement on Wednesday.

The twelve destinations will span 120 kilometers and are poised to set a new global standard in luxury sustainable tourism. As the physical embodiment of the ambitious and future-focused Saudi Vision 2030, Magna will be developed with a core focus on cutting-edge technology, world-class architecture, and ultra-modern amenities that seamlessly merge with nature.

Each destination is individually unique, with its own distinct offering for residents and guests, yet they will seamlessly blend to form a unified destination. They will be woven together by the conservation, preservation, and rejuvenation of native flora, fauna, and the breathtaking natural landscape.

The development will boast 15 luxury hotels, 1,600 hotel rooms, suites and apartments, and over 2,500 premium residences across its destinations.

Chief Executive Officer of NEOM Nadhmi Al-Nasr said: “NEOM's premier coastal region of Magna is a treasure of tomorrow, steeped in natural beauty and advanced technology. Aligned with our three pillars of redefining business, conservation, and livability, Magna will play a key role in building a strong tourism ecosystem within NEOM.”

“Importantly, Magna will contribute positively to the national economic diversification efforts and to the broader Saudi Vision 2030 goals, helping to position the Kingdom as a global leader in luxury tourism,” he added.

In line with Vision 2030, Magna and its destinations will stimulate the Kingdom's economy by creating 15,000 jobs across the tourism, leisure, and hospitality sectors. The development is projected to contribute SAR 2.6 billion to the Kingdom's GDP by 2030, accommodate 14,500 residents, and welcome more than 300,000 overnight visitors annually.

Magna presents an unprecedented opportunity for investors and developers to be part of one of the world's most pioneering projects, with sustainability embedded in every stage from design to construction and long-term maintenance.

Magna is NEOM's newest region within the evolving giga-project development in the northwest of Saudi Arabia, following Sindalah, THE LINE, Trojena, and Oxagon.

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S&P Expects Saudi Issuances to Continue Domestically, Internationally Driven by Vision 2030

A view of the Saudi capital, Riyadh. (SPA)
A view of the Saudi capital, Riyadh. (SPA)
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S&P Expects Saudi Issuances to Continue Domestically, Internationally Driven by Vision 2030

A view of the Saudi capital, Riyadh. (SPA)
A view of the Saudi capital, Riyadh. (SPA)

S&P Global Ratings anticipates that Saudi issuers will continue to tap local and international capital markets to finance projects under Saudi Arabia’s Vision 2030. The agency expects debt levels to remain manageable, with private sector debt-to-GDP ratios staying below 100% over the next 12 to 24 months.

According to S&P’s report, “Saudi Capital Market Overview: Rising Issuance Levels Are Just the Start”, Saudi companies have dominated issuance activity in recent years. Over the past five years, Saudi entities, including government-related entities, have accounted for roughly two-thirds of non-governmental US dollar-denominated issuances. However, the report predicted that banks will play an increasingly significant role in the future.

The report noted that Saudi issuers have raised over $130 billion in US dollar-denominated issuances over the last five years. This adds to $144 billion raised domestically in Saudi riyals during the same period, driven by Vision 2030 initiatives.

While the government accounts for about 60% of these issuances, the Kingdom’s Vision 2030 has created expansive opportunities in the non-oil economy and banking system, paving the way for future growth, the report underlined.

S&P highlighted the development of Saudi Arabia’s mortgage-backed securities market as a key factor to watch over the next two years. As of the end of September 2024, Saudi banks held more than $175 billion in mortgage financing, most of which carried fixed interest rates but were funded through short-term resources, primarily local deposits.

With declining interest rates, some of these mortgages could re-enter circulation, enabling banks to sell them in the secondary market without incurring losses. This would allow banks to offload mortgage financing from their balance sheets, provided legal challenges surrounding the mortgage-backed securities issuance are resolved or mitigated sufficiently to attract local and international investor interest.

According to the report, developing the mortgage-backed securities market could significantly enhance banks’ financial capacity, enabling them to better support the implementation of Vision 2030. This could occur through existing infrastructure, such as the Saudi Real Estate Refinance Company, or via direct issuances in the capital markets.