Construction Kicks off on First Two Hotels at 'Red Sea' Project

Red Sea Development project - (SPA)
Red Sea Development project - (SPA)
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Construction Kicks off on First Two Hotels at 'Red Sea' Project

Red Sea Development project - (SPA)
Red Sea Development project - (SPA)

The Red Sea Development Co. (TRSDC), announced on Wednesday that it had started construction on two of its flagship hotel projects.

It said in statements that it has awarded contracts to Saudi company Al Bawani and Swiss firm Blumer Lehmann to support the development plans and structural work of its luxury hotels and resorts.

The two companies will play pivotal roles in the construction of hotels across The Red Sea Project, with Al Bawani responsible for civil and structural works across 40 hotel villas on the Southern Dunes site, and Blumer Lehmann responsible for timber construction planning and fabrication as well as supply works for a hotel situated on Ummahat Al Shaykh Island," the statements read.

John Pagano, the CEO of TRSDC, said: "The Red Sea Development Company has made significant progress in terms of the design and construction of key infrastructure to enable the development of hotel assets."

“It is exciting to award these contracts, which signify the start of a new phase for us as we move into the build of our stunning resorts both inland and on one of our key islands. We feel confident that Al Bawani and Blumer Lehmann will help turn our vision into a reality.”

The hotel project at the Southern Dunes site will also include the building of staff accommodation for around 700 employees, which will substantially reduce workers’ travel time and help improve productivity.

Fakher Alshawaf, CEO at Al Bawani, said: “This award represents a first for the Southern Dunes and is an essential part of the development plans for The Red Sea Project. We’re honored to be one of the first companies to work across this beautiful site and are pleased to play our role in helping to open up this destination and our country to the rest of the world.”

The Red Sea Project was announced by Crown Prince Mohammed bin Salman in July 2017. Elements of the first phase of the flagship scheme are due to open in 2022, with full completion in 2030.



Saudi Inflation Rate Remains Stable at 2.3% in June 2025

The Wholesale Price Index (WPI) recorded a relative stability at 2.1% in June 2025
The Wholesale Price Index (WPI) recorded a relative stability at 2.1% in June 2025
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Saudi Inflation Rate Remains Stable at 2.3% in June 2025

The Wholesale Price Index (WPI) recorded a relative stability at 2.1% in June 2025
The Wholesale Price Index (WPI) recorded a relative stability at 2.1% in June 2025

The General Authority for Statistics (GASTAT) reported that the annual inflation rate in Saudi Arabia remained stable at 2.3% in June 2025 compared to the same month of the previous year.

The Consumer Price Index (CPI) also remained steady at 0.2% in June 2025 compared to May 2025, on a monthly basis.

Similarly, the Wholesale Price Index (WPI) recorded a relative stability at 2.1% in June 2025 compared to the same month last year. However, the WPI decreased by 0.1% in June 2025 compared to May 2025.

According to GASTAT, CPI reflects price changes paid by consumers for a fixed basket of 490 goods and services. This basket was selected based on the results of the 2018 Household Income and Expenditure Survey. Prices are collected through field visits to points of sale, and the CPI statistics are published monthly.