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Red Sea Global Expects Growing Investment Opportunities in 2025

Shura Island design (Photo: Red Sea Global website)
Shura Island design (Photo: Red Sea Global website)
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Red Sea Global Expects Growing Investment Opportunities in 2025

Shura Island design (Photo: Red Sea Global website)
Shura Island design (Photo: Red Sea Global website)

As part of Saudi Arabia’s efforts to become a top tourism destination, Red Sea Global, wholly owned by the Public Investment Fund, is advancing significantly on its Red Sea and Amaala projects. The company anticipates increasing investment opportunities, particularly in the hospitality and real estate sectors, throughout the remainder of this year and into 2025.
In late October, Red Sea Global announced the successful financial closing of a $1.5 billion multi-utility infrastructure project at Amaala. This project is being led by a consortium that includes EDF Group, Masdar (Abu Dhabi Future Energy Company), East West Power of South Korea (EWP) and Suez.
Speaking to Asharq Al-Awsat on the sidelines of the Cityscape Global 2024 exhibition in Riyadh, Ben Edwards, Executive Director of Cost, Commercial, and Procurement at Red Sea Global, said that the company opened its first resorts, including St. Regis and Ritz-Carlton hotels, by the end of last year and early 2024.
Edwards explained that 2025 will be a landmark year for the Red Sea project, with the completion of hotels on Shura Island, which will feature 11 luxury hotels from leading global brands around an 18-hole golf course. Development at the Amaala site is also underway, with eight hotels slated to open in the first phase at Triple Bay, as well as a Yacht Club and a Marine Life Institute.
“We welcome investors in the hotel and real estate sectors and invite them to explore opportunities in the Red Sea and Amaala projects. We offer a growing portfolio of private real estate investment opportunities, including properties near the Shura golf course and in Amaala,” Edwards said. He added that the company is actively seeking service providers, contractors, and suppliers to participate in bids and projects.
Sustainability is at the heart of all Red Sea Global projects, Edwards emphasized. Both destinations rely entirely on off-grid renewable energy sources, with over 760,000 solar panels installed and supported by the world’s largest solar energy storage facility. The company is also leading significant environmental initiatives, such as planting mangroves; so far, over 1.5 million mangrove trees have been planted, with a target of 50 million by 2030.
To date, Red Sea Global has awarded over 600 contracts valued at approximately SAR 23 billion ($6.13 billion) to local and international partners.
The Red Sea destination spans more than 28,000 square kilometers and includes the world’s fourth-largest thriving coral reef system. By 2030, the project aims to attract up to one million visitors annually.

 

 

 

 

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Dollar Resumes Upward Trend, Euro Hits Lowest since Nov 2022

US Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
US Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
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Dollar Resumes Upward Trend, Euro Hits Lowest since Nov 2022

US Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
US Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/File Photo

The dollar hit new multi-month highs against the euro and the pound on Thursday, the first day of 2025 trading, as it built on last year's strong gains on expectations US interest rates will remain high relative to peers.

The euro fell to as low as $1.0314, its lowest since November 2022, down around 0.3% on the day. It is now down nearly 8% since its late September highs above $1.12, one major victim of the dollar's recent surge.

Traders anticipate deep interest rate cuts from the European Central Bank in 2025, with markets pricing in at least four 25 basis point cuts, while not being certain of even two such moves from the US Federal Reserve, Reuters reported.

The dollar was hitting milestones across the board and the pound was last down 0.65% at $1.2443, its lowest since April, with its fall accelerating after it broke through resistance around $1.2475.

"It's more of the same at the start of the new calendar year with the dollar continuing to extend its advances in anticipation of Trump putting in place friendly policies at the start of his term," said Lee Hardman, senior currency analyst at MUFG.

US President-elect Donald Trump's policies are widely expected to not only boost growth but also add to upward price pressure. That will lead to a Fed cautious about cutting rates too much further, in turn underpinning US Treasury yields and boost dollar demand.

A weaker growth outlook outside the US, conflict in the Middle East and the Russia-Ukraine war have also added to demand for the dollar.

The dollar also reversed an early loss on Thursday to climb against the Japanese yen, and was last up 0.17% at 157.26.

It reached a five-month high above 158 yen in late December, potentially putting pressure on the Bank of Japan, which is expected to raise interest rates early this year, but possibly not immediately.

"If dollar/yen were to break above 160 ahead of the next BOJ meeting, that could be a catalyst for the BOJ to hike in January rather than wait until March," said Hardman.

"Though for now markets are leaning towards March after the dovish comments from (governor Kazuo) Ueda at his last press conference."

Even those who are more cautious about sustained dollar strength think it could take a long time to play out.

"The dollar may be vulnerable – but only if the US data confound market expectations that the Fed doesn’t cut rates more than once in the first half of this year, and not by more than 50bp in the whole of 2025," said Kit Juckes chief FX strategist at Societe Generale in a note.

"There's a good chance of that happening, but it seems very unlikely that cracks in US growth will appear early in the year – hence my preference for taking any bearish dollar thoughts with me into hibernation until the weather improves."

China's yuan languished at 14-month lows as worries about the health of the world's second-biggest economy, the prospect of US import tariffs from the Trump administration and sliding local yields weighed on investor sentiment.

Elsewhere, the Swiss franc, another victim of the recent dollar strength, gave back early gains to last trade flat at 0.90755 per dollar.

The Australian and New Zealand dollars, however, managed to break away from two-year lows touched on Tuesday. The Aussie was 0.36% higher at $0.6215 having dropped 9% in 2024, its weakest yearly performance since 2018.

The kiwi rose 0.47% to $0.5614.