Asharq Al-awsat English https://aawsat.com/english Middle-east and International News and Opinion from Asharq Al-awsat Newspaper http://feedly.com/icon.svg

Saudi Arabia: SCTH, SAGIA Ink Promising Deals Worth $26B

Saudi Arabia: SCTH, SAGIA Ink Promising Deals Worth $26B

Saturday, 28 September, 2019 - 13:00

The Saudi Commission for Tourism and National Heritage (SCTH) and the Saudi Arabian General Investment Authority (SAGIA) announced Friday a number of agreements and MoUs with regional and international investment firms in the tourism sector totaling about SAR100 billion (USD26.6 billion).


Agreements facilitated by SCTH include two with Al Khozama concerning the Mayasem Project and the Harbour Project in Jeddah, along with other investment plans plus another with Diriyah Gate Development Authority to establish a 27-hole golf course at Wadi Safar and a 40 room hotel in Al Bujairi, overlooking the Wadi Hanifah Valley and At-Turaif UNESCO World Heritage Site.of that with AMAN Resorts to build an exclusive 40 room hotel in Al Bujairi. Also, Saudia agreed on MoUs and agreements with NEOM to launch the first commercial flights to NEOM.


The agreements covered launching a joint initiative between Saudia and The Red Sea Development Company to promote the Red Sea Project as a luxury global destination to drive tourism, and an agreement with the Royal Commission for AlUla.


Agreements signed by SAGIA include one worth SAR37.5 billion with Triple 5, which plans to develop a series of mixed-use tourism, hospitality and entertainment destinations across the kingdom.


SAGIA signed another one with Majid Al Futtaim worth SAR20 billion for a mixed-use shopping and entertainment destination, which will create 12,000 jobs and feature the region’s largest indoor ski slope and snow park.


It also agreed with FTG Development, OYO Rooms, and Nenking Group/Ajlan Brothers on deals worth SAR11 billion.


The Chairman of SCTH, Ahmad al-Khateeb, said: “These exciting and wide-ranging agreements are only the beginning of the investment opportunities that will arise within Saudi Arabia – the fastest growing tourism sector on earth.


"We anticipate more businesses from around the world will establish operations within the kingdom, as its unique attractions, culture and natural beauty become more widely appreciated.”


Ibrahim al-Omar, governor of SAGIA, said: “In Saudi Arabia, the market fundamentals are in place for a vibrant tourism industry, and we believe that the private sector will play a crucial role in unlocking this potential.


“At SAGIA, our role is to empower and enable domestic and international investors by identifying and developing new opportunities, fostering partnerships and shaping regulatory reforms,” Omar added.


He further continued, “Signing these agreements today represents a milestone for the kingdom of Saudi Arabia as we continue charting a path to a new diversified economy.”


SAGIA granted two investment licenses with a value of SAR272.5 million. The first went to Kerten Hospitality to develop a portfolio of mixed-use projects across the Kingdom and the second to Tetrapylon to coordinate with leading tour operators across North America, Europe, and Asia.


In addition, organizations have made investment commitments collectively valued at SAR36.25 billion, including Alshaya Group, Shomoul, Radisson, and Seera Group.


Notably, these giant investments fall under a series of economic reforms conducted by the kingdom to attract qualitative investment to the Saudi market.


Editor Picks

Multimedia